@CTUCyberGroup Lessons: Be Careful Trading IPOs #Trading #Stocks
I hope everyone had a great Memorial Day weekend, I want to give a big thank you to anyone who has served! Even though we had a three day weekend the market came back well rested. We had some really big movers pretty much all day. The most noticeable included $SPEX $DYAX $PRAN $CLDX and a nice short with $HIMX. One of our level five stocks for the day which I was to talk a little about was $JD.
$JD is a new stock that had its IPO May 22nd. Even though technically today wasn’t its first day trading the stock still carries and extremely higher risk than a stock that’s been trading for over a year. IPO trading as well as IPO investing carries above-average risk, as initial stock prices can be far from the value the market eventually puts on the company's shares. This provides great upside potential, but it also carries the risk of losing more than an already proven stock. If you are not an experienced trader or one of my “black belts,” as I like to call you, than I would stay far away from these. If you are one of my advanced traders keep in mind, the bigger the risk the higher the reward.