History never repeat itself as per my old college professor says, but not in Stock Market arena. Another good play happens at Puregold Price Club, Inc. (PGOLD) last month when they open their IPO to the last October 05, 2011.

I didn’t assume as an expert on momentum trading, but so far… it continued to give me a good profit on most of my IPO ride plays. My previous blog entry on this can be found on this link : http://online-stocktrading.yolasite.com/home/momentum-investing-riding-the-stock-market-waves. It shows also from other momentum rides and made a quick bite in more or less 30 working days, leaving the real hardcore investor behind while I do run my funds with profit.

A strategy might be so risky to handle by others, as I remembered that most of training instructors on our stock seminars before didn’t encourage this moves. It’s not because that it’s not profitable, but it’s so pressured and intense job to speculate something we’re not really sure. But trading on stock market is already placing our money on a very risky vehicle, so personally… playing short trades by riding the IPO is really worth it. I haven’t perfected it, but most of my rides are well executed. I think also that this strategy not need to be a genius, it requires more guts and little research. At PGOLD IPO ride, 20~25% profit at less than 60 days is quite easy achievable.

Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998, as a company engaged in the business of buying, selling, distributing, and marketing wholesale or retail goods and commodities.

When they started to open to public last October, the overall market stand is still bullish and most investors are moving away. Didn’t realizing that a fresh meat already served, wolves already got a bite. And month of December is fast approaching, on this period; companies are mostly try do some fancy window dressing to make their respective holdings looks pretty. Wolves can now release their fangs and run the profits.

How is this is happens? IPOs have a lot in common nowadays compared from the passed records. And because they offered few shares only to public, and those who are interested to purchase are forced to bid it a higher price. Simple isn’t? Yes! But what if nobody now interested to buy shares because other believed that it’s already overpriced? That’s where the risk got stuck, so proper entry planning is highly encouraged. The main key is to have it as early as possible when IPO released! That’s it…but again, there's no assurance that we'll do really profit on it even you'll be the one have a first share. We can set example what happens on Cebu Air Inc.(CEB), which is opened at price of Php120+/share but it still now dropped at Php70.0+/share. The risk is always there, stay cautious though. Be ready to accept losses as we try to save our principal from a burning torch.

This scenario happens again and again. Although it’s not perfect as always as we wanted to be, but mostly… it leads to a good profit. As we check on PSE website, lot more IPO’s are coming. And from the list, I picked Cirtek Holdings to play with.

God Bless & Good Luck Kabayan.