Page 9 - IPO Test Book
P. 9
HOW TO MANAGE THE TRADE.
Best case scenario: You get in to the Initial Offering Price, The IPO-Gap Up X % and keeps trading Up. At 1:00 pm.
• *Stop Market or Stop Loss At the Initial Opening Price.
Neutral case scenario: You get in to the Initial Offering Price, The IPO-Gap Up X%, reverses and Hit the Stop Loss, you end losing only the cost of the exit commission.
• *Stop Market or Stop Loss At the Initial Opening Price.
Worst case scenario: You get in to the Initial Offering Price, The IPO Gap-down (Below the Initial Opening Price). CLOSE THE POSITION IMMEDIATELY.
