In 2019, initial public offerings are HOT. But how do you trade them? Do you jump in on day one? Today, Tim Bohen covers how you can trade IPOs — and when you should trade them.
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Most companies start out with private funding. As they grow and expand, they usually need more capital. That’s when they go public. So they list shares to be publicly traded. It’s a way to sell equity on the public markets.
So now instead of asking a bank or a private investor for money, they’re going to the public market. Now, as an investor, you can buy a small piece of this company. You’d do that because you believe in it and you think the company’s value will go up over time.
In an ideal world, the company takes your capital to fund operations and grow. That would mean an increase in profits and the potential for investors to see a reward over time.
OK … That’s great for investors. But why would we want to trade IPOs? The mania! People love hot IPOs.They see these companies and their potential. They want in now. And that can create opportunity. You can learn how to ride the momentum as a trader.
But here’s a key point: When should you trade an IPO? I think smart day traders should avoid getting sucked into the hype and the mania. Take a step back. Be calculated in your approach. Attack at a good time.
Newbies tend to fall for the hype — they buy in on day one of the IPO. You almost never want to buy a stock on its first day one of being public … and almost never on day two. Look to the chart. And if the stock hasn’t been trading, there’s not much of a chart. So let the chart develop…
There’s often a day-one spike, but don’t pay attention to it. Most of the time, IPOs slam hard later in the day and gap down the next day. Or maybe they gap up the next day … That’s the thing: there’s no telling what can happen.
Think like a sniper. You want well-executed trades. Have a plan. Let the chart show you where this stock is headed and be willing to wait for the right time to trade. Look for the consolidation and then the break. Above all, be smart. Don’t let the mania suck you in.
#StocksToTrade #Stock Market #IPO
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
Have you traded IPOs? Have you done well or have they burned you?
If I invested in company and already have 50k shares. And they are proposing to buy additional shares while they still doing early bird evaluation. Would you think it’s better to wait until they go to the ipo stage and see what’s going on or get additional shares?
LOVED this video! …great knowledge and input! Seems like a very smart man and knows his stuff definatly following …. I'm pretty damn new to investing and everything lol but I a sponge now for it 🤣
Listened to the first 3 minutes of a rambling man. Try to catch peoples attention more quickly.. next video
Is there option that can be bought within the week or so.
I have done well in the past but thanks to you I could have done better thanks Tim.
I notice that there is sometimes a huge gap between the IPO prices and what the stock actually sells for immediately after the IPO. I have seen stocks where the starting price after the IPO is 5 times the IPO price. When this occurs the IPO buyers have a staggering advantage over the investors that have to buy the stocks at prices much higher than what the IPO buyers paid. I haven't actually bought any IPO stocks. I have heard that most ordinary investors are shut out of the process no matter how much they might want to buy stocks at IPO prices. I'm afraid to jump in until I do more of my own research and see what actually happens in practice.
This answered a lot of other questions I had thanks!
Great video! Just sounds like you are in a middle school gym.
Video should be titled "What is an IPO" because I still don't know "how" to do it.
Aodio = JOKE!
Thank you for the info, just bought METX I was up 20% and then went down 50% after offering ,should i wait or add?
Tim i tried to buy an ipo today it listed starting price 25.00 i set up to buy with a limit order for that price, went to run errands came back to find it started at 35.50 why would this happen?
when i was first learning . i dabbled in an ipo day 1 trade. realized quickly it was not a good idea. so like this videos suggests I wait for it to stabilize after a few days. then ease in. good video , thanks .
I’m a newbie to trading. I got caught up in the hype behind Rivian. I bought shares early and it’s been paying off nicely 😊 Jeff Bezos made it a gamble I had to take
This is where i messed up. I recently bought an ipo on opening day. Thank you for these videos. I’ve learned a lot lately
Why not just take advantage of the “mania” .. buy and sell fast?
What platforms are available for buying and trading/selling?
Superb job
How do you know when the right time is ?
Thank You for the info!
& then WHAM! 10:1 Reverse Split, buyer beware.
Momentum traders hit it right away
CAN THE CHART BE FAKE? AND DO ONE GET TO PURCHASE A STOCK/SHARES ?.NEVER DONE IT
First time with IPO. Any suggestions?
i just made 40,000 on GCT i bought when it stalled by webull at 13.60 and sold at 53.60 the next day
Explaining well
🇺🇸🇺🇸🇺🇸🇺🇸
Hey, I'm completely new in the Canadian stock market and I don't know about the IPO process. I want to purchase ipo before it's listed on any exchange is it possible to buy one. currently, I have an account with wealth simple and they don't have an option for ipos. and which one is the best platform to purchase? like in India all people can purchase the ipo before any company is listed on any exchange.
I never had real luck with IPO’s until just this week PWM Prestige Wealth based in hong Kong absolutely soared! I was tagged on it in moomoo trading app and was reluctant to join until it opened that afternoon and circuit broke at $5.75! Luckily I was able to get a position @ $5.75/share my timing was perfect when it came back up it’s steady up around $20 and I feel it still has life after 3 days people are loving it including me! Lol
How to buy – yo idiot didn’t tell us where
How can we discover new ipo’s,
How to buy ipo..?
WHY! do you TALK! like THIS! haha
Echo echo echo
🎉 great information