Monday, October 07, 2013

Limit order on Twitter IPO open?

My latest thoughts concerning how I will invest in Twitter for its IPO are:
  1. How much to commit on the first day.
  2. How much to commit on the open.
  3. Whether to use a limit order on the open.
  4. Whether to wait an hour after the open for for all, part, or half of my initial commitment.
  5. Whether to split my opening order into two, half market order and half limit order, or some other split.
To a large extent I will only be able to answer these questions a few minutes or maybe an hour before the open.
 
Even if I do buy at the open with a market order, I am also leaning towards a tight limit order as well on the odd chance of catching a break if trading whipsaws up and down a lot on the first day.
 
And I am leaning towards an afternoon buy if the stock swoons on the first day.
 
And I am leaning towards an additional buy a few days later as the initial frenzy abates.
 
I also still need to calculate what percentage of my portfolio I want to dedicate to Twitter over the first year (maybe 5%). My current thought is to then commit 10% to 30% of that amount on the first day and the remainder on 15% price dips.
 
In short, still no final decisions.

-- Jack Krupansky

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