Investment Legend William O’Neil on Stock Market
Investment Legend William O’Neil on Stock Market
How to deal with IPO Frenzy?
“The safest time to buy an IPO is on the breakout from its first correction and base-building area. Once the new issue has been trading in the market for one, two, or three months or more, you have a valuable price and volume data that you can use to better judge the situation.” – William J. O’Neil, MarketSmith Founder
With the recently concluded IPOs of Hudco, CDSL, and AU Small Finance Bank making the news, we ask if a retail individual invests heavily in IPOs? A common notion in the market is that IPOs are easy money with minimal risk. We would rather ask our readers to be cautious with IPOs for the following reasons:
● Nearly all of the good issues end up with a tiny allotment for the retail investor due to huge institutional demand for the stock. Continue reading “How to deal with IPO Frenzy?”