IPOs Often Offer a Second Chance for Quick Gains ...READ MORE
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| IPOs Often Offer a Second Chance for Quick Gains | | Last week, traders and the news media watched the first day of trading Lyft and for many analysts, there were no surprises. As with many initial public offerings, the stock begins trading higher than the price the company issued the shares at. [SPONSORED CONTENT] | | 99.52% Win Rate (Documented Proof Inside) Traders at JPMorgan have come insanely close reaching Warren Buffett's #1 investing rule, "Never lose money." Recently filed reports show 3 full years with ZERO losing days. New research has discovered a way for ordinary investors to "wiretap" their trading desk… and piggyback on their incredible winning percentage and profits. The shocking details here. | | That provides a pop in the stock price. However, it is unlikely individual investors are benefitting form that pop. The initial sellers are often large investors, hedge funds, for example, that generate significant commissions for the investment banking firms that manage the IPO.
Then, as we saw in Lyft, prices drop throughout the day as individual traders seem to rush in, buying shares that the company's initial investors and Wall Street's largest traders are selling.
Then, a few months later, as we explain in our latest article, there can be a second wave of selling by early investors and company insiders. Again, this is smart money decreasing their positions and it can push the stock price down.
We have an example of that in the article, in a company that is also facing operational pressures and together, these two factors could be setting up a short-term trading opportunity that could allow traders to make a large gain, more than 90%, in less than a month.
We show the exact trade with recent market data in our latest free educational article that is available right here.
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