Michael Petryni
1 min readNov 11, 2020

In the tradition of the “For Dummies” books, I give you the short and sweet on trading and/or investing in IPOs:

Buying into an IPO is actually one of the easiest decisions in stock investing but never let a broker con you into doing it the day of the offering.

Instead, note the high price and the low price on the first day the IPO is traded. Those are the lines in the sand or the Darvas box around the first day of trading. The time to buy, invest, is above the high of the first day with a stop loss below the high of the first day.

That is usually a low-risk trade since the real good news comes when the stock proves it can move up from all the hype surrounding the offering itself and if it falls back the stop to exit is obvious — either below the high of the opening day or below the low of the opening day depending one’s own time parameters and risk tolerance.

Michael Petryni

Journalist, film critic, screenwriter, proprietary trader seeking simplicity in trading.