HSX Forum

Playing & Trading Strategy

That strategy has not worked for a while...

Posted by: Oleg Max (a.k.a Oleg_Max) on Sep 03, 10:16 in response to unaturalx's post Down ...H$420,042.94 , but I play for the long term...

IPO's are overpriced.  Yes, DMac, I said it...  :)

In the past, when IPO's rarely were priced above H$10, buy and hold strategy worked just fine.  In worst case scenario you only lost a bit of money.  Not the case today...  Some of them (especially indie films are IPO'ed at prices they will never make at the box office).

Today's IPO's can be compared to real life IPO's backed by private equity firms.  Most of them end up trading down within a week or two or a few months down the road.

The only IPO's worth buying and holding are the ones that are reasonably priced, have a release date, and a major studio behind it.  Those are rare, but they happen.

Skip the rest. 

Good luck trading...





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