Trading Recent IPOs

New stocks can be some of the market’s biggest winners, and some of its most painful losers. Here is a patient, rules-based approach to recent IPOs that avoids chasing the first-day excitement.

Why recent IPOs are different

A new stock has little price history, few analysts following it at first and a small float. That means big swings in both directions. There is no long-term chart to show where buyers and sellers stepped in before.

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