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Too early in the market

Discussion in 'TIFU' started by youngbull, Apr 21, 2016.

  1. youngbull

    youngbull Member

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    I got too excited and bought my share right when it opened. From what I heard it's the worst time to buy because the Market is too crazy and people are too emotional at that time. Another L for me :(

    And just because the company just recently went public. Don't mean the share of the stock will go up from ipo. Another L :(
     
  2. StockJock-e

    StockJock-e Brew Master
    Staff Member

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    Also, some IPOs are not good for long term holds!

    [​IMG]
     
  3. youngbull

    youngbull Member

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    I'm holding 2 ipo right now crvs and able. What's your perspective on that? Thinkin of grabbing rrr ipo on the 27th also
     
  4. T0rm3nted

    T0rm3nted Moderator
    Staff Member

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    I know nothing about either company or the one you're thinking about grabbing. My perspective though is that they are huge gambles. As you mentioned in your first post about how you fucked up, you said you took too big of a gamble and lost. I think when a lesson presents itself, you should learn from it, and not try the same thing again and cross your fingers and hope for the best.

    I could be wrong and those plays you mentioned could be successful trades and you could make money, but I'd be looking for another route if I learned an expensive lesson. If you don't learn from a lesson, it wasn't even a lesson and you will repeat past mistakes.
     
  5. Gray Wolf

    Gray Wolf Well-Known Member

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    Write down the mistakes and revisit them before every purchase. I have a nice long list of mistakes not to repeat again and over time it is helping. I'm just not sure how many more mistakes are out there waiting for me. Also, write down the chances you take that produce winners also. Keep those lists handy and use them.
     
    youngbull likes this.
  6. surfsup

    surfsup Active Member

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    GOPRO, they sell cameras. They don't even create any tech, which means it is a brand. Their brand is based on one product, the camera, unlike Apple, or other companies that represent a culture or family of tech innovation. Eventually GoPro will get competition since there is nothing proprietary. Additionally it is a niche solution. How many people need to video themselves surfing? Once some basic questions are asked and a time-value is placed on the company, a more accurate emotional attachment and trade exit can be made. Hindsight...it's 20-20! Personally I never understood how GoPro could spike like it did. Sometimes I'm too conservative and don't even get in when I think..."what's the big deal?".
     
  7. Tiptopptrader

    Tiptopptrader Well-Known Member

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    There are pro's and con's to buying when the market opens. If you know from pre-market the stock is going to gap up (especially on high volume) and futures look good It may be time to jump aboard. If futures are ugly like they were the last couple of days, the open is taking a risk.

    If it is going to be a market melt down, buy at the extreme low starting at deep support. If it is a true meltdown check back in the last 1/2 hour of trading and go shopping but remember the meltdown could continue into the next trading day or so buying in tiers is suggested
     
    #7 Tiptopptrader, Apr 30, 2016
    Last edited: Apr 30, 2016
  8. Ciao (Sheppy)

    Ciao (Sheppy) Well-Known Member

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    Youngbull all depend what is your plan/strategy ....majority of my trading (scalp) are done on the first hour... the best...
    but I don't recommend it unless one got enough experiences ... stocks move fast either way....
     
    youngbull likes this.
  9. Rock Sexton

    Rock Sexton Meat Popsicle

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    When IPO's go public, investors who provided financial support while the company was private will sell their shares to get a return on their investment. That's essentially priority #1 for the IPO in the first place. The firm that is running the IPO will also have clients who were priced in before it went to market and many of them will also take profits.

    It's like throwing a ball into the air over a cliff. Sure it rises, but it will inevitably fall (public money dries up) and then the waiting game begins. A key moment is when the employee lockout expiration hits. Generally speaking - by this time employees will have suffered thru watching the stock rally at the IPO and then significantly drop over the coming weeks/months. They start to get antsy after seeing their potential profits dwindle, which usually leads to panic selling. Short sellers also try rushing into these trades.

    The result is usually a high volume sell-off. It's at this moment that the old private investors and other institutional money start to get interested again. That's when you should be looking to buy in my opinion - especially if it's a tech or social media stock (anything being priced on future earning potential).
     
    #9 Rock Sexton, Aug 10, 2016
    Last edited: Aug 10, 2016
    T0rm3nted likes this.

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