Ipo's are hot right now: Initial Public Offerings., Maybe hotter, even than the Dot Com Boom.. Now a lot of people make a lot of mistakes by rushing into these hotly anticipated IPO's.. Today, I'm gon na give you the number one strategy to trade. These IPO's initial public offerings, successfully., Hey everyone before we get started, be sure to like share subscribe and, if you're on YouTube ring that bell to be notified.

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Let's get started., I'm Lead Trainer with StocksToTrade Tim Bohen., We're gon na be talking about IPO's. You know, depending on when you watch this video one of the biggest ones out there, Robin Hood - we're actually gon na be talking about that today and why this strategy applied and keep in mind. You know, I know a lot in social media and particularly social media. In the finance circles, lot of cherry picking out there.

So the reason I bring that up is I'm talking about how this strategy worked almost perfectly with Robin Hood H, O O D, but here's the deal you can go back to probably two or three years ago, When we first really got active on the channel. And if you look for videos that I've done about IPO's, it's very similar to the strategy. Okay, Now I still want you to watch the video. Still want you to learn.

But my point is: I'm not just cherry picking Robin Hood or Traeger Grills, because they're the IPO's du jour., The point is I'm giving you recent examples of why this strategy works and how to employ it. All right. That being said, let's get to work. So keep in mind.

I want you looking at the hottest, hotly anticipated IPO's. Now, there's many different ways to do. That., Probably the worst way to do it is to Google IPO's. Yeah.

I talked about this in a recent video.. It just really bums me out how finance especially trading, especially as we've gone into this post 2020 world, with the explosion of everyone being a day trader, but the quality of information, especially on Google., I mean so many people are just gaming. The results with these.. I think it's at some point.

I think it's like AI writing some of these articles'cause. It's like they're all the same, but they add in the SEO term.. So that being said, you can Google upcoming IPO's., But jeez good luck with that.. You can, if you work hard enough, you can probably find it.

Now. I think the best way is to have breaking news chat with StocksToTrade.. You know what breaking news is: two guys that have have over 25 years of experience tracking the news each 25 years, each okay., It's basically 50 years combined., And what they're doing you know: they're, monitoring the Bloomberg terminals, they're monitoring, every single news, feed out there. And Then they curate that news and they give you a good actionable list of IPO's in play..

Another great way check out pre-market prep every day, 8:30 Eastern, I'm live.. If there's a hot IPO that day we're gon na be talking about it.. Now, I'd like you to be a little more ready than day one., That's where breaking news comes in handy., But again, if you're on pre-market prep the day of the Robin Hood came out, we talked about it.. We talked about this approach.

Okay, So I want you caring about the hotly anticipated ones because understand we're looking for emotion. We're looking for irrational exuberance as they say.. We want these stocks to trade, ridiculous volume, to breakthrough key levels, to do red to greens. To do dip and rips to do.

V. Whap holds all of these patterns. We look for., So the more buyers we have the more anticipated they are, the better the chance for that. Okay, Then, what we're gon na do day one - and this is the most unpopular apart of this video.

- Probably like half of you - are gon na close. The video right now but day, one of any IPO., I don't care what it is.. I don't care. If it's Robin Hood., I don't care.

If it's Apple., I don't care. If it's a Space X, Neural Link., I don't care what it is. Day, one in my opinion for you, the newer trader.. That's why you're here.

They're all ignores because day, one you're playing guessing games and you're better off.. I mean - and I honestly mean this: if you're gon na trade a day one IPO you're better off going to the casino.'Cause, at least at the casino, you have 50/50 odds. Okay, You can go to the you know, you can go and put money down on a coin flip or whatever your game of choice. Is., You get a free drink..

Maybe you take the wife or the husband for a nice dinner and you have a good time.. Maybe you win money., Maybe you lose money, but at least you have a good time. If you're trading day, one IPO's, I think the odds are like 80/20 you're gon na make money.. Now you might make money, but it's not a consistently repeatable strategy and you're, not finding an edge., And if anything you even if you do make money on day one, I think it rewards bad behavior.

And any of those profits you make you'll give back on the Next IPO, because you think you now have a strategy., So there you go., There's your disclaimer. Go to the casino instead of day one.. What I want you to do is let the stock set up over a two to three day: period.. Now that number's a little flexible., I look for a minimum of three days, because what typically, what happens a lot like Robin Hood? You have day one where it's just all over the place up down all over the place.

Then day, two typically a red day, because what a? Why is day, two typically a red day, Because it's never good enough. Okay, The culture we live in the society we live in, it wouldn't have mattered.. You know Robin Hood initially opened at 38.. I can tell you, even if it went to 100 on day, one like tripled in value.

People still wouldn't be satisfied.. It still wouldn't be good enough. So day, two typically there's a sell, off. There's profit taking when the stock doesn't continue to gap up to 200 or something.

You'll. So many people just have unrealistic expectations in the stock market.. That's why so many lose. So much like Robin Hood.

We had that big red day and then what I love - and this is why I just begged begged begged you to avoid the mainstream financial media.. You know it's just there's so much bad information. Like the day before the IPO, everyone loves it.. Every talking head is: oh, it's the greatest thing.

Ever. Then the IPO closes on the low of the day.. Then, the day after the IPO, everyone hates it., Worst worst IPO in history. I mean, and you can Google the headlines..

I mean the second day there were headlines. You know worst IPO in history with Robin Hood., Okay and so the more you can avoid that bad information.'cause. I mean we talk about this. A lot on the channel.

I mean the bummer is the reason I do this channel.. The reason I do the podcast. The reason I do pre-market prep, the downside of the world we live in, is it's a click-based, culture. And they're trying to hype you up before the IPO.

They're, trying to scare you after the IPO, because they want your clicks, so they can sell you more ads.. So you can be brainless and make them more money. Or you can check out our resources and actually learn how to trade.. So that being said day, two we allow the stock to set a trend.

Typically, a red day. Then day, three. What we're looking for is a break of the IPO opening price. Again Robin Hood's perspective that was 38..

That's that area we're looking to enter. And why is that significant ?'Cause understand a lot of insiders, especially in this day and age. If you understand how a lot of these technology companies work a lot of them not all of them, but particularly in the technology sector, a lot of employees, management they're given shares in lieu of compensation or in lieu or in addition to compensation.. So maybe you know maybe you're making below market rates as a programmer at Robin Hood, but they keep throwing shares at you.

And they're like hey we're going public soon.. So you keep working below market rates or maybe below your market rates.. Maybe you're like a rockstar, programmer. And you're like okay, I'll, keep working this crappy wage, but they keep throwing shares at me..

So what happens when the stock goes above? The IPO price is that emotional swing. Everyone's excited again.. All the insiders are excited. Everyone that bought on day one okay., The people that didn't listen me and got bagged on day, one and then day two hated their lives.'Cause, the stock tanked again.

Everyone's great.. That's the greatest thing about breaking of the IPO price.. You cannot. It's literally impossible for you to be read at that point.

The stocks trading at its highest price. Just like we look for 52 week, breakouts et cetera., So you can see day three. It didn't break now understand. I know this is the three-day IPO trade trading strategy, video, but understand it's around three days.

You know it was like three days to the first couple of trading weeks is what we look for day: three: it tested. Tested, 38 didn't break. Day, four, which was a Monday by the way, which is not surprising. We come in on Monday, money Monday, as we say so day.

Four stock explodes higher breaks through 38.. You can see skips up to as high as 48 on the day before closing at 46. Next day, huge gap up into the fifties ran as high as 85 okay. And look at that..

I mean, I know it's only a four day chart, but you can kind of see that cup and handle okay.. You can see that dip and rip for lack of a better perspective.. You know, I know that I always talk about the dip and rep being more of a day trading strategy.. But if you understand the chart pattern for a dip and rip it's there, big first move pull back and then a reclaim of the highs..

You can't deny that that's there. Then also cook, a very simple. You know this was another hotly anticipated IPO. Traeger Grills love my Traeger by the way., But you know again day one you can see the stock had a big run, but then look at that doji candle..

You can see day one of the candle.. You know when we talk about a doji candle, that's a stock, that's a candle where the stock runs, has big wicks but basically ends unchanged. And you can see where this thing basically ended unchanged at 22, no other doji candle on or I'm sorry day, one the Doji candle then another doji candle on day two.. Then you get that big breakout on day.

Three at 24 goes as high as 25 50 that day. Gaps up day two goes as high as 30 little bit of a shaky day yesterday, but then today, 30 plus again notice that big initial spike pull back, reclaim dip and rip just on a daily chart.. Now again, that dip and rip is more of an intraday pattern. I've got there's probably like 150 videos on the channel talking about that..

But again I always do that hand motion and you can see what this happened. What happens when this breaks out to all time? Highs.'Cause again not to beat it to death. Everyone's green. You know institutional investors, pension funds, again, insiders, employees, retail investors., Everyone's green, the punches flowing as they say, and everyone thinks the stock is going to the moon, but you're a day trader, you're agile.! You don't get greedy., Then what we do is use the three to one risk: reward methodology that I talk about in tons and tons of webinars and tons of YouTube..

So that being said, keep in mind really three-step process.: Okay, locate the hottest IPO's out. There. Again. My opinion is the best way to do that is with breaking news.

Step. Two watch it on day. One make sure the mania stays. I mean that's the biggest reason I want you to watching.

It., Paying attention is to watch the zeitgeists as they say., And I mean day one on Robin Hood, everyone, everyone every website, everyone was talking about it the day, one volume.. What was it? I can't remember off the top of my head. Yeah, a hundred million shares on day one.. You know that tells you that okay, now this thing's in play., Then step three., You're, just gon na set that alert for that breakout level..

Maybe it comes in three days.. Maybe it comes in four days.: Maybe it comes in seven days.. Maybe it comes in 10 days.. Then, when that high breaks your alert goes off.

You enter the trade. You set your risk and reward obviously.. Okay, you never! I mean these are volatile fast moving stocks.. You have to have a stop., You never enter a trade without a stop, but you buy that break..

You risk what you're willing to lose.. Maybe it's depending on your risk profile. Maybe it's! Maybe you got a hundred shares and your risking a buck. A share for a hundred bucks.

- Maybe you got a bigger account. You're, risking five grand to make 50 but use that three to one risk to reward based on the breakout level. And then always if your goal is hit. Take your profits because listen depending on when you watch this video, especially Robin Hood, I mean Robin Hood - went full vertical..

It would not surprise me to see this give back a considerable amount of its gains.. I mean here we are at $ 60 the day we're recording this. Depending on when you see this. My opinion we'll see it is 2020-2021 by the way wildest stock market in history in my opinion..

But I expect Robin Hood to give back a lot of its gains., But if you were trading it on day, four with a good plan and not getting greedy, not thinking it was going to a thousand like somebody on Reddit or something you could have made. 2, 4. 5. 10 $ 20.

A share, which is how you grow your account.. So all right, everyone drop me. A comment.. Have you traded IPO's on day one? How have you done? I mean? Listen.

You got a 50/50 chance.. Maybe you made money., Maybe you didn't.! So drop me a comment., Let me know. And then I hope, instead of just jumping in on day one you get, you have a process, you approach these methodically and you don't treat it like the casino.. The reason so many fail in short-term trading is so many treat it like a casino treat it like an entrepreneurial endeavor, okay.

You're, risking your money to grow your money. And you're doing that with the markets. Instead of opening up landscaping, company or a restaurant or a real estate, company approach it like that, have a good process and you can make a lot of money trading IPOs if you're patient. All right.

Everyone drop me a comment and we'll see on the next video.