FGVH shares continue the down trend after IPO

” FGVH shares continue the down trend after IPO, it shows good strategy to sell off on its first trading day “

FGVH stocks has been continue going down after its IPO opening at early July, when it was trading at around the high of RM5.50 per share back then. At the moment it’s trading near the IPO offering price of $4.55, there’s no telling where the price will go in the near future.

I understan

d that a lot of people like to buy IPO as a quick cash strategy from stock trading, while not denying it as easy money but there are few rules to always keep in discipline when doing such trading.If in future IPO, you must consider selling the IPO shares you bought right after it started trading on the first day because there are few reason for such strategy.

1.) Most traders who bought the IPO shares at lower price prior to opening day will try to sell off their holdings on the first day of trading to get profits. The rational is that every big boys is selling, the price will continue go down.

2.) Since IPO stock don’t have historical data to form a price chart for technical analysis, there’s no possible way to identify the support and resistance of the stock price. So it make no sense to keep the shares while there’s no guidance to where its heading in the near future.

3.) Even though the IPO stocks has those fundamental data that support what the price it should be value at, we need to understand the stock market works on a stronger force called Demand and Support. If all the buyers are gone, the sellers will come in hard. This is where the price continues going down.

Hope this lesson will help everyone who is buying IPO stock to make money, keep in mind to consider the above strategy as a guide.

Disclaimer : This is just my opinion on stock trading strategy, there’s always a risk in doing such trading activities so please do your research properly before investing your hard earned money.