I remember when the IPO for $NIO Inc.(NIO)$
Last night, NIO went up almost 10%. If you haven't already invested in Nio, you may be wondering if its time to buy. After all, it seems to tempting, right? Well, I'm no guru, and I wanted to add more to my portfolio last night but I held back. Of course, the stock then was at $8.88 and after a few hours (I went to sleep to suppress my urge to buy more), it went up to $9.40.
Do I regret my actions, or rather, inactions? Well, the answer is no. Why? Well, the stock went up because of NIO's deal and if you jump in now, I think the risk of profit taking by now is high. Of course, there is always a chance that I'm wrong and the stock can go higher. What I think is more prudent is to accumulate the stock in small bites if you want to step into the already hot foray (do note that this isn't the first day the stock went up 10% as it has done so in the last few days).
Going in all in now is akin to jumping on the bandwagon, thereby increasing your risk. Is there anymore upside? Well, as mentioned, the IPO has gone to $20 before but I don't think the potential for the stock to jump that high is enough yet. Thus, it makes more sense to accumulate slowly. For me, I'm sticking to my principles of not buying when a stock is green. I also have the feeling the stock will fall today (or at least soon).
However, as always, I would advise all to throw caution to the win. A lot of optimism is driving stocks up now, very much akin to 2021 when covid-19 was seen as subsiding. The market was green in Jan, but by Mar 21, stocks were teethering because of rising inflation and then-possible war in Ukraine. That journey, since then, has been long and ardous. But it is a journey. This year, 2024, promises to be full of promises, but one needs to hedge against any possible risk (war is no longer seen as "impossible, given the situation in Gaza as well).
Invest well, invest safely.
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