Page 25 - The IPO ToolBox
P. 25
HOW TO MANAGE THE TRADE
Best case scenario: You get in to the IPO somewhere between the Initial Opening Price & the first trade, and the IPO keeps trending Up. Close the trade At 3:50 pm just before the market closes..
*Stop Market or Stop Loss At the Initial Opening Price.
Rare case scenario: The IPO Gap-down and you get in to the trade Bellow the Initial opening price and start to trend up. Close the trade At 3:50 pm just before the market closes.
*Stop Market or Stop Loss 10% below your Opening Price.
Worst case scenario. You get in to the IPO somewhere between the Initial Opening Price & the first trade, the IPO trends down and hits the stop loss at the Initial Offering Price.
*Stop Market or Stop Loss At the Initial Opening Price.
