Hot IPOs are back in the headlines — and if you’ve been anywhere near a trading screen lately, you’ve probably seen the chaos surrounding Newsmax (NYSE: NMAX) and CoreWeave (NASDAQ: CRWV).
We’re talking about multi-hundred-percent moves, wild swings, meme-stock chatter, and some truly eye-popping valuations … all in the first few days of trading.
But before you rush in thinking you’re about to catch the next moonshot, let’s break this down trader-to-trader — because this kind of action isn’t just volatile, it’s dangerous if you’re not prepared.
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The NMAX Supernova: From MAGA Media to Meme Stock
Newsmax (NMAX) exploded more than 2,000% in two sessions after its IPO — briefly hitting a market cap higher than Fox Corp — before crashing 77% in one day.
Check out the latest Newsmax stock news here!
How does that even happen?
Simple: low float, heavy retail interest, political buzz, and a limited Regulation A IPO sold to 30,000 investors. In other words… perfect meme-stock fuel.
This isn’t about fundamentals — Newsmax lost $72 million last year. But the stock’s small float and emotionally charged narrative (Trump connections, anti-mainstream sentiment, etc.) triggered a massive speculative frenzy.
That’s the kind of play where discipline matters more than hype. Chasing a move like this without a clear trading plan is how accounts blow up.
CRWV: AI Hype + NVIDIA Ties = Frothy Frenzy
Then there’s CoreWeave (CRWV) — the AI infrastructure startup backed by NVIDIA and OpenAI.
CRWV went public under huge expectations, and while it initially underwhelmed, it’s since rallied hard, up 65% in its third day trading despite massive cash burn and reliance on just one customer (Microsoft accounts for 60% of its revenue).
Of course, it also crashed in its latest trading days, down 20% from its high.
Read the latest CoreWeave news here!
The company lost $860 million last year. But again, fundamentals don’t drive IPO action — hype does. AI is hot. So traders are piling in with no regard for sustainability.
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That’s the setup for a potential breakout … or a massive rug pull. Either way, you better have a tight plan if you’re trading it.
Why IPOs Are So Dangerous for Traders
Here’s the bottom line — and it’s something I’ve said for 20+ years…
IPOs are landmines for new traders.
Why?
Because there’s no chart history. No established support or resistance. No volume-based levels. You’re flying blind.
That means no clean technical analysis and no prior price action to “build the case.”
Instead, you’re relying on hype, emotions, and crowd behavior. And that’s a tough game to play — especially if you’re still learning to manage risk.
Even veteran traders tread carefully around IPOs. They wait. They watch. They look for repeatable patterns after a few days of trading data are on the chart.
My Best Advice for IPO Trading
If you’re gonna trade IPOs like NMAX or CRWV, here’s how to do it with a real strategy, not just wishful thinking:
- Avoid Day 1. This is where most traders get bagged. Wait for the dust to settle.
- Let the chart form. Give it 3–5 days to establish support/resistance and confirm volume interest.
- Look for key breakouts. Breaks above the IPO price or Day 1 high can be strong — if backed by volume and a setup you know.
- Trade like a sniper. Small size. Tight risk. Clear goal. No holding and hoping.
- Cut losses quickly. It’s my #1 rule for a reason — IPOs can drop 30–50% in minutes.
- Don’t fall for FOMO. If you missed the move, let it go. Another setup will come.
Final Thoughts: Learn to Recognize the Game
NMAX and CRWV have been insane to watch — and yeah, maybe even fun to trade for the right kind of trader.
But for most people, they’re better off on your watchlist, not your portfolio.
When it comes to IPOs, hype is not a strategy. And unless you know how to manage risk in unpredictable environments, these “opportunities” can become expensive lessons.
So stay smart. Be patient. Study the charts. And never forget: the market rewards preparation — not gambling.
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