Looking back, one of the mistakes I made previous was to buy IPO stocks. I still can remember using ATM to subscribe IPO stocks that I did not even know what is the company is about. The impression I had last time was it was very easy to make money from the IPO offering. You subsribed the share for $0.10 and the 1st trading days it would shoot up to 100%! It was the easy money, wasn’t it? However, we would never go and sell the share as our greed told us that it would go higher and higher and made money $$$! At the end of the day, the price would drop back to even lower than the IPO price. I have lost money with Del Monte, Dynamic, Giant Wireless, Valuetronics and Eastgate that my record is almost 100% (LOSING MONEY!!) I have got rid of Del Monte and Dynamic two weeks back and still holding Valuetronics.
Lessons learnt: Do not anyhow buy IPO stocks unless you are VERY VERY SURE it is a good company with very good business prospective and fundamental. Anyway, it is always a gamble to buy IPO stocks as there is no historical data for us the assess the stock price. It can make money very fast and also make us lose money as fast!