How to Trade IPOs Stocks: Best Trading Setups 2018 | Bulls on Wall Street

How to Trade IPOs Stocks: Best Trading Setups 2018

The theme of this summer has been IPO plays. We have seen so many recent IPOs this year double in price in a few weeks, and sometimes less. They have offered huge opportunities to not only day traders, but for swing traders as well. These have been one of the best trading setups in 2018 so far. We recently made a video lesson showing you how to capitalize on these plays. In the video below we talk about all of the characteristics of these plays, and the different setups you can use to get entries in these stocks early in the move before they explode:  

Recent IPO Plays

There have been so many IPO plays in the past month that we have been trading an IPO stock every day. Some recent plays we mentioned in the video have all been recent China IPOs, such as IQ, HUYA, BILI. Some non-China plays have been tickers like DBX and AVLR. All of these in the past two weeks have been offering huge intraday range and great liquidity for trades. All of the patterns on these stocks have been so clean to the upside, and there is no sign of them slowing down anytime soon. Check out this article for more tips on how to play the recent China IPO plays.

Always Have An Eye on Their Charts

IPOs do not always go straight up like AVLR as soon as they start trading on the exchanges. Many of the big IPO runners this summer actually sold off or consolidated sideways on their first few days & weeks of trading. Everyone forgot about them, and then while no one was watching, broke out and went on massive runs. IQ, BILI and DBX are examples of this. Here is IQ’s chart as an example:

best trading setups

You can see how explosive it became once it starting flagging over its IPO high. Always have recent IPOs on your screen. Create an IPO group on your watchlist that you can quickly run through every night. Keep tabs on where they are on their daily charts. If they are starting to base and form higher lows near their all-time highs (like in the IQ chart above), they are getting ready to explode. Once you see IPOs break over their all-time highs after basing for a few days or weeks, you will often see some monster moves like we did with IQ, BILI, and DBX.

Trade Anything From Anywhere

Want to travel the world trading stocks and/or cryptos? Join our next 60-day bootcamp before July 1st and get complimentary lifetime access to our crypto bootcamp along with special pricing for 60 day intensive trading bootcamp. We will teach you all of the best trading setups 2018 Click here to speak with an education specialist.