Written Summary

Introduction

The video discusses the importance of studying IPO bases and how they can provide traders with a significant edge in their trading. The team has spent years studying every base that has ever existed and has been able to determine what really makes a stock work and what doesn't.

What is an IPO Base?

• An IPO base is a short and shallow area of consolidation that occurs within the first 25 days of a company going public.

• The left side high of the base occurs within this timeframe, and it typically corrects less than 20%.

• The length of an IPO base is usually two to five weeks, although there are exceptions.

• The key feature of an IPO base is that it occurs right after a company goes public.

Characteristics of an IPO Stock

• Traders should look for a high price IPO with a large price increase on the first day of trading.

• The stock should be in a leading group or sector.

• Traders should look for a shallow base that does not correct too deeply.

• A large increase in price on the pivot day is important, along with strong Up Down volume at the pivot.

Why Study IPOs?

• IPOs have the potential to give traders a huge edge in their trading.

• IPO bases are most likely to produce a Super Growth Stock in any given year.

• Out of all 1600 IPOs studies, 69% achieved a gain of 50% or more over their lifetime.

• 10% of these stocks achieved a gain of 900% or more, and 5.2% of these stocks achieved a gain of 2000% or more.

Conclusion

The video provides a strong case for why traders should study IPO bases. They are statistically significant and bring amazing edge for those who learn them. Traders who handle these trades properly can potentially change their lives quickly, in less than two years. The next chapter will cover the lifecycle of an IPO stock and the different patterns it might exhibit.