I'm back, and not at all thrilled to learn that Mobileye's IPO closed up 48 percent.
I had intended to watch that one closely. But couldn't do it due to the trip.
BUT, to make money on that sort of IPO, you have to buy in at the IPO's initial offered price
and that's something I don't actually know how to do yet.
HOW can I buy into the stock of a new IPO at the price listed before trading begins?
If you know, please tell me. I definitely want to try my luck with some IPOs.
I expect the Alibaba IPO will be quite profitable for those who get in on the ground floor. I intend to be one of them
IF that is possible. The moment I know the symbol and the price is set, I will attempt to place a limit order for it
via my brokerage account. I'll set the limit order a little above the IPO set price but well below what I THINK the
stock will do in the first day.
If it turns out that the opening price is higher than my limit order, then I don't lose a penny, but will of course have to cancel
the open order to free up my money for other trades.
Last edited by Carrerain4; August 2nd, 2014 at 08:45 AM.
Today I watched, and did not trade. It's not my trading day anyway. (Friday)
I simply couldn't see a winner.
At the end of the day I checked every stock I was watching and checked all the high percentage gainers and
not one of them had the pattern I'm looking for and, so far, have seen in every stock I've (so far) put money
into and made a profit on.
Even in hindsight, the winners weren't evident.
If I HAD gone into any of them, it would have been by random chance and the vast majority of them would
have given me no significant yield. In fact most of them would have failed to meet my 2 percent yield goal.
Most of them would have eventually caused me to lose money.
This helps to validate the integrity of my selection criteria.
In essence, I'm looking for a steady upward climb starting at the opening bell, and the rate of climb needs to
be fairly fast. That's the FIRST criteria I'm looking for.
I don't see that I have (at this time) any way of reliably predicting what will take off tomorrow, so I have to
base my selection criteria on observed performance TODAY.
Tomorrow (Tuesday) MIGHT be a trading day for me. I'll watch and see what happens in the morning and
see if I get that unique feeling that I always get when I pick a star. Regardless of whether I buy tomorrow
or not, I won't buy again until Friday. (Because of the 3 day settled funds rule. I need my funds to be available
for day trading on my Fridays off. So this week, only Monday and Tuesday allowed the possibility of trading before
Friday as I didn't trade last week so my funds have been settled for several days.)
My philosophy of picking stocks is subject to revision at any time due to market experiences.
Tuesday I went in and didn't do so well. I picked a winner but by the time I bought in, all the winning was over and done and I should have seen it. A stock that opens at 1.00 per share is not likely to keep climbing after it's hit 1.20 per share, but I bought in at 1.21 per share and consider myself lucky to have gotten out of it before it hurt me too much.
I should have seen that trap. In hindsight it's very obvious.
It didn't have reasonable room to run.
And volume dropped off dramatically in mid-morning.
I gave back most of the profit I made on the previous trading day.
I've been watching and trying to pick winners based on early chart data, and watching my picks through the day,
and the results have not been as encouraging as I could hope for.
So I"m going to readjust my methodology and spend more time screening for probable gainers based on market related news articles from all the various sources I read, which are CNBC, Marketwatch, Zerohedge, 4-traders-com, Reuters, Bloomberg, and others.
We will see what happens. Friday is my next trading day.
Tomorrow is the IPO for Green Bancorp with a starting price of 15 dollars per share.
I found that by CALLING my brokerage, they can take my order via the phone at 8 AM tomorrow morning,
and I'll be in it. I have to place a limit order which in this case will be @ 15.50/share.
Since this isn't an IP for some hot trendy consumer product manufacturer, I don't expect it to do quite as well
as some notorious IPOs have done in the past. (FB, Amazon, Google, etc) But I do expect it to be worthwhile.
The brokerage should be able to tell me when the stock "goes live" and appears on the trading boards, which
should be somewhere between 10 and 11 AM. But I can buy it from the brokerage at 8 AM so I'll be all over that.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
The following 4 users say Thank You to Big Mike for this post:
The IPO range for GNBC was $15 - $17, and has now priced at the very low end of the range at $15. For an IPO, "buy low" is not something I want to be doing, I'd much rather it be pushing the highs of the range to buy (take for example GPRO, which had a $21-$24 range and priced at $24 and opened in the secondary around $30). I'm sure @Carrerain4 has done this research though, and determined that it's a good trade for him so best of luck! I won't have actual popcorn, but I'll be peeking in. :-)