BUYING IPOs FOR “DUMMIES” — $ARM and “THE PLAIN AND SIMPLE” — 9/18/2023

09/08/2023

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.

09/18/2023 — Still waiting to see…

$ARM, a stock with notable market interest, had its IPO last week with a big flurry of comment and activity.

I have no idea what this company does but that doesn’t matter. This is “IPOs for dummies” and IPOs stock symbols are no more than bouncing balls just like every…