A Market Maker’s Insider Secret To Keep You Safe From IPOs

An important lesson to learn from the big recent IPOs:

The ARM IPO I warned you about has made a new low each of the last 3 days.

Similar thing with the CART IPO.

Now, as a former market maker, I want to let you in on a little secret:

Before a stock starts to trade… market makers get all the orders that are coded “market on open buy“…

Meaning these are the folks who want to buy at market price when it opens.

And if you happen to be in that group with a market order, you could be in for a wild ride

That’s because “market” orders, give the market makers room to raise the opening price.

And then from there they put everybody in at the highest price they can.

Then once everybody’s bought that wanted to buy, then price falls back down.

One of the reasons it works like this is because the underwriters of the IPO don’t care how the stock performs once it’s out on the open market.

All they care about is raising as much money as possible for the company going public.

So the higher the price they can get from the initial buyers (those “market” orders), the more money that the issuing company is going to get.

So keep that in your back pocket.

That’s one of the reasons I try not to use market orders… and why I’m skeptical of many IPOs.

Stay tuned — I’m releasing something next week you are not going to want to miss. Especially for people like me who hate to lose.

In the meantime, why not skip the IPOs and other market craziness

And instead discover the strategy I use every single week to bring in weekly income. You can check it out right here.

Trade well,

Jack Carter

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