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Playing & Trading Strategy

I don't know that anyone has looked at this systematically, but here are my general thoughts on trading IPOs:

Posted by: RogerMore on Feb 05, 09:26 in response to Panda's post Re: Tron3

Saturdays will have the high profile IPOs, and they will generally be up big on Sunday and then down on Monday as day-traders divest. (Timing varies - and for the highest profile IPOs like a new Avengers or Batman or Hunger Games movie, there is usually enough interest in holding the stock long to keep the stock price buoyant through Monday)

IPOs for limited releases with little-known or no stars will almost always drop in price the next day - especially if they have an upcoming release date, because traders know they will get a return on their investment quicker.

The most difficult to pick are IPOs priced in the $6 to $12 range - very generally speaking, artistic movies with recognisable stars that if made will probably get a limited release - and IPOs in the $15 to $30 range - genre movies with recognisable stars that may or may not get made.  In the long term, both are post-IPO shorts (at least until there's news), but you never know which ones will strike a chord with traders in the short term.  One thing that would encourage me to go long on IPO day is if there is news that day about the stock (which happens more often than you'd think).  But while the next day movement is difficult to pick, they generally don't have big price swings either.

For a single data point - look at last Monday's IPO, BKTHF.  $20 IPO price, went up 90 cents on the first day of trading.  There was a non-specific production start date announced on the day of IPO. Price dopped marginally on IPO+1 and then (for whatever reason) it jumped up on IPO+2. On IPO+3 came news that the leads were cast and the price jumped up again.  So there were greater gains to be had from trading the stock on news and movement than there were from the day after IPO.

I like this hollywood stock exchange, but question... Panda Feb 02, 05:03

There is a .01% transaction fee per every trade. However, this does not apply tostocks or bonds which delist. # tips tatoufan Feb 02, 07:06

Other useful links slappydavid Feb 02, 07:18

NIce one slappydave hsxsanity is very, very useful. {nm} tatoufan Feb 02, 07:29

*tips slappydavid H$1M* {nm} RogerMore Feb 02, 09:17

** This post has been removed by the forum moderator! ** Panda Feb 02, 15:50

Antibody, please scrub this message. Panda accidentally tagged TOWNI here. {nm} Paul2k Feb 02, 18:28

OK, there are a couple of things to talk about here. Roger More Feb 02, 19:56

I've been playing just over 2 years and the TAG that Roger More just referenced blew my mind Dionisio Feb 02, 22:03

Starbonds are simple - there's plenty of easy money and no real mystery. Everyone should be able to do it. RogerMore Feb 03, 08:33

Beg to differ about 'very small Ports not investing in MovieStock IPO's'. RotoHockeyYTD2013 Feb 03, 11:39

Yes, but you know how they perform. A normal small port (usually newbies) don't really know when to pull the trigger and cash out... {nm} slappydavid Feb 03, 13:13

You're a professional YTD trader who knows what risks to take. Panda's new to HSX and on a learning curve. So, different strokes. {nm} RogerMore Feb 03, 13:16

Most recent example - Bought (TRON3) at 70.00 IPO Price - Sold at 80.30. 18 Hour Hold. RotoHockeyYTD2013 Feb 03, 14:55

Again, you have an idea of the risks, plays and opportunity costs involved in that trade. Someone completely new to the game does not. {nm} RogerMore Feb 03, 15:51

This is a high risk/high reward potential method. Not recommended for newest players... IMHO. {nm} RocketYTD2013 Feb 03, 16:00

You suggest a strategy then recommend against it. So, basically, you just wanted to brag? {nm} eyescovered Feb 04, 04:08

Read the poster's name closer. {nm} RocketYTD2013 Feb 04, 08:56

Apologies, Rocket! : ) {nm} eyescovered Feb 04, 09:38

Too funny. {nm} RotoHockeyYTD2013 Feb 04, 12:07

BTW, you can slow down on your main port and let me catch up now, OK? eyescovered Feb 04, 13:21

Commission is actually 1%, minimum 2 cents per share (under c in Glossary) {nm} Rednax Feb 02, 08:58

Which also means that once a stock gets below 2$, it is 2¢ per share at all times. {nm} RocketYTD2013 Feb 03, 16:02

This is a great thread....Good questions and good answers...The worst thing is to be the 4th child..the one who Buy BONDS 20 coming soon Feb 03, 12:56

Easy With Common Sense (: Newb, or not. Panda Feb 03, 17:13

But I proobably don't know it all. (; {nm} Panda Feb 03, 17:23

Sure - you are right that there is good money in IPOs, but it is just a little harder to crack. RogerMore Feb 04, 09:11

Re: Tron3 Panda Feb 05, 00:47

That's not necessarily right, even if most of the time it's the right way to go (only on IPO day) slappydavid Feb 05, 06:56

I don't know that anyone has looked at this systematically, but here are my general thoughts on trading IPOs: RogerMore Feb 05, 09:26

Don't Forget to play a 1-3 Penny Stock. You can strike gold!!! {nm} mike255 Feb 05, 11:47





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