I will be beginning my journey to 1M right here. I’m 20 years old and I want to build generational wealth and retire my parents. I will be posting my trades and reasoning behind why they’re made, feel free to critique as I only have 1 year of experience and want to learn. The most recent play is BWV where I pulled out $875 after investing about $500. I will continue investing the resulting $875 mostly into singular plays, avoiding derivatives in most cases with a goal of a 5% return daily. Keep in mind $500 is not even 5% of my net worth, I just want to reduce my risk during this journey.
This post will be edited every trading day, so far I’m ahead of schedule. While I can afford to take some losses because of that, I obviously prefer not to.
Day 1: $500 → $875 (75%)
Day 2: $875 → $875 (0%) was mostly cash gang. Had a 20% profit on OSTK, but couldn’t get a fill on my sell order so I broke even. Will have to do a market for sales and limit orders for buying at the bid.
Edit: (2/22/2022). I decided I will not be updating my challenge value daily as it’s not something that’s sustainable for me. I will be updating weekly and calculating (current value vs. expected) using the formula: 500(1.05)^(# of trading days after Feb. 18, 2022.)
IPO Play #2 Testing My Luck with $AKAN (Akanda Corp)
I started taking a look into IPOs last week when I noticed the tendency for IPOs with low floats to have initial spikes followed by sell-offs. Although I’m unaware of any heavy retail involvement, I label these as pumps by the nature of the price movement.
Fast forward, I decided to look at IPOs occurring last week and bought $BWV on its IPO date when I realized the float would only be 2.2M trading at a $9 offering price. Seemed like a no-brainer to me given that the company’s IPO has been previously published by the press and has a valid starter pipeline visible on its website. As expected, #BWV had its “pump” and I sold at the top (I learned the importance of taking profits in this group EVERYTIME).
Now that’s all out of the way, this is my second attempt at playing an IPO. The candidates this time will be $ALOHA or $AKAN. Here are some things I know of it so far, that are consistent with characteristics of $BWV:
ALOHA IPO Date: “Week of 2/21”
AKAN IPO Date: 2/25/2021
(ALOHA vs AKAN)
Low float: (2.0M vs 4.0M)
Inexpensive entry: ($12 vs $4)
Valid productive company:
ALOHA: Cashflow negative with a sustainable line of products and a growing market sector. However, there seems to be a decreasing demand for their products, especially with it being a competitive sector. Profit is at a “loss” and revenue decreasing past few years, which is the reasoning behind this IPO to raise capital. SAUCE
AKAN: Sustainable line of medical marijuana grown worldwide intertwined with several brands including Aurora and Tilray (SAUCE). What I like about this is that they raised capital through a $5.3M placement with Boustead Securities, LLC (SAUCE). I’m very bullish on this because BWV had a similar instance where working capital was raised for endeavors pre-IPO, which can be a good look rather than going straight with IPO as a last resort (SAUCE). Something had to bring in the smart money.
At least minor press recognition:
The reason I want to consider “at least minor press recognition” is because it can help bring buying pressure to IPOs when they are initially announced. This was the case for HOOD, RBLX, RIVN, and BWV. Buyers were made aware. It becomes even juicier considering low floats.
ALOHA: Seems to have recognition from Ellen, Oprah, WSJ, NY Times, Forbes, and CNN (SAUCE). However, it’s uncertain when this occurred. A lot of new start-ups can get recognition earlier on, but decline with time and I believe this may be the case for ALOHA.
AKAN: Not much I can find, but it’s a pioneer of medical marijuana in Africa with seed-to-patient connections stretching to the UK in an eternally expanding cannabis market. The scalability and potential for more press is huge (SAUCE).
Edit: To make it clear, I’m leaning more onto $AKAN as of now.
I see some calenders putting the date tomorrow (2/24/2022) whereas some have the date on Friday (2/25/2022). I will be keeping an eye on it to make sure I get an early entry.
Also, some new press on $AKAN today. Good multidimensional look at the upside and downside of the IPO with emphasis on how it’s a relatively new establishment:
Unfortunately $AKAN’s IPO has been postponed until further notice. I will be focusing on increasing capital until then to maximize returns. I’m up over 100% already on my $500 → $1M journey. Will update more in-depth later.
Expected value = $500(1.05)^(trading days since start of challenge)
Current challenge value: [color=#00FF00
]$1108.85[/color] vs. $638
This week had very successful scalps for me. As you can see, I’m a little bit ahead of schedule. I’m holding $911.35 in my buying power over the weekend with RSX puts valued at $197.5. Special thanks to whoever called that out. I’m currently up 21% on RSX, but expecting some downside with 72 hours of war over the weekend. Pretty excited about the postponement of $AKAN’s IPO as I will have more cash in hand to pick up a hefty position and hopefully get more ahead of the challenge with some hyper-growth.
Apologies in advance for not including % or $ of P/L specific to each individual play. That will have to wait until I set up an account specific to this challenge separated from the rest of my net worth. It will probably be on Webull with minimal fees and decent fills for options.
Some notable plays:
[color=#EEBC1D]$CYRN[/color], [color=#EEBC1D]STRN[/color], and [color=#EEBC1D]IMPP[/color]. Low float pump and dump scalps that gave me easy 10%-30%. I always trim my position as they go to limit the downside.
[color=#EEBC1D]$AMC[/color] and [color=#EEBC1D]$SOFI[/color]. I used these two by getting calls during the SPY dump to $410 and profited from the recovery.
[color=#EEBC1D]$OZON[/color] and [color=#EEBC1D]$VTEX[/color]. I still think the first has more downside and the latter more upside. I would hold if I had more capital but unfortunately had to take minor losses near break-even to ensure I have enough liquidity for next week. Also, wasn’t that confident about holding them over the weekend.
[color=#EEBC1D]$IRNT[/color]. Special thanks to whoever called this in the discord. I got puts at $7 and sold under $6.
What I will be looking at the upcoming week:
ZM: bearish on earnings, but cautious of IV crush
SOFI: eyeing a reentry as I’m bullish on earnings
TBD as I receive more information. (I will not update this list, but will contribute my thoughts on threads.)
Expected account value for Week 2:$500(1.05)10 = [color=#EEBC1D]$814.45[/color]. Will it be rags or riches? Stay tuned to find out.
Sold RSX for profit, scalped for a little more, and finally repositioned for aftermarket development. Got some RKLB calls for rocket launch and earnings today. Also got some UNG calls. Split $300 among them and have $1,100 in cash gang to avoid losing money from my own stupidity.
Challenge balance: $1,261.44 (not finalized) vs. $1039.46
Up 152.29% from $500
My balance and ROI are still not finalized. In the process of closing positions and completing asset transfer. Full explanation below:
Alright, this was a tough week for me. I was frustrated with the trading halt of RSX and RUSL by E*TRADE even though I managed to farm decent profits from them. I started the process of transferring my challenge balance over to TD Ameritrade after Conq and someone else recommended thinkorswim, which I actually have been enjoying lately. The process took a while and forced me to use some of my net worth to act as leverage for my challenge balance while the transaction was being processed. As of right now, my balance is not finalized and may very well be over $3,000 after I transfer profits for trades (assuming everything holds and I finalize my gains).
Current positions:
50+ CORZ puts expiring March 18th and April 14th with variable strikes (this is where I decided to use extra liquidity from my net worth while my challenge cash was stuck in transfer. I know it’s a risky decision but my positions are up 60%-150%. Anyways not all of the profit will go to my challenge account, but as of right now the ones I’m planning to transfer should bring my balance to over $3,500).
3 WEAT March 18 11c
1 RJA March 18 9c
1 AER March 18 45p and 1 AER April 14 35p
5 RKLB March 18 10c
The week ahead I will be looking at:
BBAI: looking for short-dated calls here because of backstop buyback.
CORZ: holding puts through Thursday share unlock and Friday weekend dump.
WEAT/RJA: holding calls through the week and reevaluating if I should reposition.
AER: considering selling March 45p for more April 35p. Will be following developments with airlines.
Account balance: probably back to $1,000ish. Need to put my journal on hold for a week or two while I take care of last year’s taxes etc.
This week was a whole lot of red. It began by my failing to fully transfer to TD Ameritrade where my positions were liquidated on Monday at market open, so will put that transfer on hold.
I was able to get green enough to sell my position and sit the week out, but decided to roll my puts over to April on CORZ for the unlock to play out one more week.
I took loses on weat mostly. Minor setbacks for major come backs.
My current positions: CORZ April 14 $7.5 and $5 Puts, BROS Apr 14 $50p, AMC April 14 $15c (multiple bottoms at this level looking for a small bounce).
Hope we can all move forward from this. Weat, RSX, and RUSL were unfortunate.
Other notable losses over the month include those previously mentioned. I also had RUSL. Thinking about wiring $1,500 to my crypto wallet tomorrow for ApeCoin.
Oh and my profit on CORZ WAS CUT BY A. HALF. I shouldn’t sold with the sentiment profit.
ApeCoin positions. Wired a lot of my profits here as a safety cushion while I embark on my stock trading endeavors on my brokerage account. Managed to gain back my losses of $1,500 from the end of last week after a good start.
Good start to the week with BEEM, BBAI, and TLRY. Grateful for these opportunities to make up for losses I took the previous week. Out for the week, going to take some profits to pay college fees IRL
Stock value: about $350 guesstimate after my transfer completes.
Crypto value (transferred a lot of my profits here past 2 weeks to act as a cushion so that I don’t blow my challenge earnings): $4,079.36 (down 30% on the week)
Grabbed some NFTs during the weekend. They were pretty cheap, but I felt good with them as a long term hold especially the purple one, which is a more recent release.
Opened a gamble with academic award money as there are multiple support levels as well as bullish momentum and news above my liquidation price. This is money I can lose and not be affected at all🙏🏾
Took 50% profits with play money and increased leverage with play money. I can now lose 50% and still remain at cost basis and some minor fees. Might do this one more time as I have 2 days before the announcement.
Day 1: $500 → $875 (75%)
Day 2: $875 → $875 (0%) was mostly cash gang. Had a 20% profit on OSTK, but couldn’t get a fill on my sell order so I broke even. Will have to do a market for sales and limit orders for buying at the bid.
: Week 1 Update[/size]
