“Charts and Stock Trading 2”
Image extraction: DALL・E2
This is not about a public offering, but rather a discussion about how one should have observed the situation for a certain period of time after going public.
Around the end of the year 2021, I bought some shares of a certain company, just to try it out. It was my first time buying stocks at their initial offering price. I wanted to experience what it was like to hold onto stocks for the long term, but due to the timing, it ended up being like “jumping into an IPO stock at its initial offering price”.
The stock price went up for a few days after going public, but as of now (May 2023), it is fluctuating around one-tenth of its highest value.
Although the purpose was to hold onto it for the long term, it is certainly not a pleasant feeling to have unrealized losses. Moreover, in hindsight, I think that I should have taken my time to choose a good entry point since I was planning to hold onto it for a long time.
The fact is, it is a bit strange to do an initial offering price purchase if you are focused on technical analysis. But since I had just started to invest in stocks, I couldn’t help my character of wanting to try anything out first.
I still hold a small amount of shares. I sometimes think about whether it will go up with the rising market or not, but if I don’t have confidence that it will go up at that time, then I feel like I should close my position. However, I want to return to the original purpose of “long-term holding” and try holding onto it for at least 10 years. I’ll keep sitting on the shares.
… So I’ll continue to monitor my unrealized losses. If I imagine having invested a considerable amount of money, I shudder to think about it.
It’s a common sense story that individual stocks have the dream of becoming a big hit, but they also have a great risk. I will confirm this every time I see my unrealized losses… but you could say that I can confirm it. If I were to forcibly list the advantages of “sitting on shares”, that’s what I would say.
