Trading IPO bases can make you Millions !! Let's find out !

1st let us know what is an IPO.

IPO stands for Initial Public Offering. It is the process by which a company offers shares of its stock to the public for the first time.

What are IPO bases?

Whenever an IPO is listed it forms a base by going into consolidation phase.
The base can be as big as the price wants the base to be.

Lets Find out how you can trade these IPO base and make get RICH👇

There are 3 ways to Trade IPO's.

1.📈 Long bases
2.📈 Momentum Flags
3.📈 Gaps

Lets look at some Examples.👇

1.📈 Long bases

👉After Listing of IPO stock goes in consolidation phase until the price decides to change it character and move up. 
👉One has to wait for the stock to come near highs and form tightness near right hand side of the base and catch the breakout.

2.📈Momentum Flags
After Listing of the stock the price Gains momentum and Runs 10 to 30%+ Upside within a short period of time.
After Gaining momentum the price takes rest for a week and runs again.
The rest of the stock is the time where we look for potential entry.

3.📈Gaps
After Listing of the stock when price goes into consolidation mode, price suddenly on a random day gaps up and closes near day high.

That unfilled gap acts as an Episodic pivot which can happen due to any reason(news/earnings).

It provides low risk entries.

That's the wrap !!














Comments

Post a Comment

Popular posts from this blog

Sholay - Jai-Mausi (Property Indexation)

*Mousi to Jai:* Beta, I have got this message that they have restored the indexation benefit for the LTCG. Is it correct Beta? Jai :   Yes, Yes  Mousi ji, Hon. FM has announced in parliament that they have restored benefits of indexation. Now in case of LTCG from the transfer of land and buildings purchased before 23rd July 2024, the tax  calculated @12.5% without indexation or @20% with indexation- whichever is lower, would be the tax liability. Mousi : Ok Beta, so all the assets purchased upto 22nd July 2024 would be eligible for indexation, right? Jai : Aree nahi Mousi. Only land and buildings would be eligible for this indexation benefit. Other assets like your jewellery etc. would not be eligible. Mousi : Samjhi, got it.  Achha,  I have a partnership with Basanti  and we have purchased a land in that firm. Indexation benefit is available for this land- hai na? Jai : Na,na, na  Mousi ji. Indexation benefit has been  restored only for indi...
Read more

A Leap of Faith : Deepika Kapoor (Startup Space)

A Leap of Faith: Deepika Kapoor's 14-Year Journey from Rs 10 Lakh to Rs 420 Crore. In 2010, Deepika Kapoor, an enthusiastic foodie and budding angel investor, found herself in a conversation that would change her life. A close friend introduced her to a couple of ambitious entrepreneurs working on a startup that aimed to revolutionize the way people discovered and engaged with restaurants. The startup was called Zomato, and Deepika, captivated by the founders' vision and driven by her own passion for food, decided to invest Rs 10 lakh in their first round of funding. The Early Days: In July 2010, Deepika took a leap of faith, becoming one of Zomato's first angel investors. Just months after her investment, Zomato attracted the attention of Info Edge, one of India's most successful startups, which decided to invest in the young company. This early endorsement sent Zomato’s stock price soaring, and Deepika’s small investment began to grow. The Rise Begins: By February 201...
Read more

P/E ratio can make you rich ! Lets find out.

Image
What is P/E ratio?       In some words P/E ratio = Current stock price / EPS (Earnings per share) of the year.       Here, Current stock price is the price at which trading is going on or the latest close price of a stock and EPS is Earning per share of recent 4 quarters which is also know as TTM EPS (Trailing 12 months ).       Lets take an example and calculate the P/E ratio for a company for better understanding. Lets take XYZ Industries.       Current Price - 2840/-       For EPS let me show you what data you need.     So TTM EPS = 28.53+ 23.67 + 25.71+ 25.52 = 103.43       So P/E ratio = 2840/103.43 = 27.4       Now PE ratio is available at many places but its important to understand where it comes from for knowing its significance. Significance of P/E ratio:       P/E ratio gives us an idea on the valuation o...
Read more