How to Invest in an Initial Public Offering (IPO)
By Michael Berger of Technical420.com
We have received a number of questions about how to play the MassRoots, Inc. (MSRT) IPO, so we want provide you with some tips on how to invest in an IPO.
- First things first, have a plan of attack. You are more likely to be successful when you have a plan. This includes determining the amount of money you are willing to invest and how long you want to hold shares. Are you a short term or long term trader?
- If you want to invest do it as soon as the market opens (9:30am EST). If you fail to do this, you will most likely be too late. Cannabis stocks trade a significant portion of their daily volume in the first 30 minutes of trading. Expect A LOT of volume in the first minute of MSRT trading.
- Determine a specific level of profit you are willing to accept…AND ACCEPT IT! Do not get greedy. You can always re-enter and put aside some profits
What information do you need to know?
- If you are trying to buy shares, look at the ASK price. If the price is moving up quickly, you should enter a limit order to buy at a price that is HIGHER than the ask price. This will improve the chances that your order fills and it will fill your order at the lowest available price. You may purchase shares at a price that is lower than what you listed
- If you are trying to sell your shares, look at the BID price. Follow the same rules listed above. If the price is moving up quickly when you are trying to sell, you can set it at the listed BID and it will fill at the best available price.
Investment opportunities due to IPO
Technical420 wants to discuss potential investment opportunities that are levered to the increased interest in cannabis stocks due to the upcoming MassRoots IPO. There will be a number of short term trading opportunities that are less risky than trying to get into MassRoots on the first day of trading.
A successful IPO would do great things for the cannabis stock market and it would help other cannabis companies rally in the short term. A successful IPO will benefit some companies more than others. The companies that we expect to see the greatest benefit are those with improving fundamentals, solid liquidity, and a good management team. Companies that have strong momentum will also benefit from a successful IPO.
Technical420 LLC is not a FINRA member firm. Technical420 LLC is responsible for the preparation and distribution of research created in the United States. Technical420 LLC is located at 40 SW 13th St. Suite 1002, Miami, FL 33130.
Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries does not accept any form of compensation from companies in return for writing reports on them. Also Technical 420 LLC, and any of its directors, officers, employees, affiliates, or subsidiaries do not hold any stock positions in companies covered by Technical420LLC.
Michael Berger is the president and founder of Technical420.com, an online research firm for publicly traded cannabis companies. Michael started following the cannabis industry in 2012 while working at Raymond James Financial. Michael worked in the equity research department at Raymond James before leaving to start Technical420. Technical420 utilizes an algorithm developed by Michael that merges technical, fundamental and sentiment data to yield the most comprehensive analysis.