Wednesday, April 18, 2012

Steps in Trading Initial Public Offerings.

The steps in trading an IPO

1. Take a look at the SEC filing before the company is effective. Make your own analysis of value.

2. Where you have a clear idea of value, and it diverges wildly from the offering price, get ready to trade.

3. Track the news and demand for the stock.

4. When the issue starts trading, follow the trading pattern of the IPOto find an entry point.

4. Put in stops and look for your exit.