The Wall Street Journal requested (and was granted) permission to follow T3 Trading Group traders (and T3Live contributors) live during the Facebook (FB) IPO at the company's lower Manhattan trading floor. Here is the link to the WSJ article- Facebook IPO: A View from the Trenches
The FB IPO was the most hyped of all time, but extremely polarizing. Some believe FB will eventually become the first $1 trillion company in our fast-evolving society, while others projected the new issue to be a major flop. As it turned out, the skeptics prevailed, aided by Nasdaq's mishandling of the technological side of the trade.
At T3Live we teach traders to trade the price action and nothing else, because that is the only way to manufacture a favorable risk-reward scenario. If you are going to trade an explosive new issue like FB, it is imperative to focus first and foremost on risk management. Marc Sperling, Scott Redler and Evan Lazarus covered their strategies for the IPO in several articles and videos ahead of the action, and focused on a patient approach when FB was weak off the bat.
When the stock bottomed out at the IPO price of $38 after the first half hour, several traders were able to take a calculated long trade off that level with stops at the lows. The strategy followed the pre-determined plan of only trading Facebook (FB) vs. a level after the stock put in a morning range that could serve as a reference.
Here is a recap of T3Live's coverage of the Facebook (FB) IPO.
How to Trade the Facebook IPO (Scott Redler)
Use Intraday Price Levels to Trade Facebook (FB) (Marc Sperling)
The Facebook IPO So Far: Buying vs $38 (Scott Redler)
Social Media Stocks Should See More Downside Pressure (Marc Sperling)
*DISCLOSURES: No relevant positions