Hi everyone!
Two days ago, 9/20/16, I made my second stock sell ever!
Since around mid-July, I have owned a company named Scynexis (SCYX). I bought it close to its 52-week low, and after buying it had been steadily increasing. On the 20th, I decided to take away a little risk from it, since it is a small cap stock.
The Trade
I used to own 150 shares of Scynexis, and bought it at a price of 2.24. So I invested $336 into it. I ended up selling 95 shares at a limit of $3.65, making back $346.75, and leaving me with 55 shares still.
Why I Sold Scynexis
I sold Scynexis for two reasons:
- Their CEO had just bought a bunch more of his company’s stock, which caused it to increase a pretty good amount. I knew that the stock would return back to the previous weeks price after a few days, which it did, so I decided to sell high.
2. Due to its risk, I wanted to make back the money I had invested into it. I made back all $336 I put into it, plus another $10. Now I can watch the 55 shares grow without worry about volatility. Whatever I sell those shares at will be pure profit now, with essentially no risk tied to them.
Overview
So of the two stocks I have sold so far, I have done pretty good. Since I started my own investment account in the beginning of July, I have bought five stocks and sold two. I sold Nintendo (NTDOY) at $26.15, gaining a profit of 46%. I sold Scynexis (SCYX) at 3.65, which was a 61% increase from the price I bought it at. However, this wasn’t profit yet because I was just getting back what I put in. But I will update you guys on the stock in the future!
If you guys have any ideas on which growth stock I should buy next, comment below! I am looking for a new stock to put this new money into!
thewannabemillionaire 
Well done!
I like the way you nailed down a solid profit with your first sell so the rest can grow without a lot of worry.
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Thanks! That wasnt my original plan but now I feel a lot better with the amount of risk it has!
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Nice! 61% is an attractive percentage 🙂
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I know right! I wish every time I sold it was like that haha
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Wow Tyler that’s impressive!! You’re on a roll, good for you. I have Apple stocks and they’re always good and increasing. Apple will always invent new things so I can’t see it ever going down. That’s just me 😛 What do you think about buying that stock? 🙂
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I would love to own Apple! I don’t know if I would buy it though just because of my low amount of capital!
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Thats ok, maybe just start with one for now 😀 or when you’re ready 😊
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Would it even be worth it to just buy one share of it?
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I’m not sure, I should be asking you that question! 😉
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Tyler, I think you’re never going to become a millionaire this way, and you’ll always be writing a blog called thewannabemillionaire. Wouldn’t it be nice to change the name of the blog someday to “The Millionaire?” The CEO, who knows the most about the company, was buying more even with a run-up, and you were selling the shares at that price. You’ve gotten $12 profit fromt he deal – enough for a cheap meal at Applebees with no drink, and paid your broker about $25 if I’m doing the math right. How will you feel if Scynexis goes to $36 (a $4500 profit) or $360 (a $46,000 profit)?
The investment time you’re giving up is worth a lot more than a lousy $480 you’re putting at risk by holding on. You’ll never get the time back that you are not invested in a great stock that’s going up. $480 you can make in two weeks or less working fast food. Quit selling yourself short.
On my blog I talk about being a “serious investor.” I’d love for you to come and take a look at some of those posts and learn how to make some real money. See this post, for example:
https://smallivy.wordpress.com/2015/02/18/get-serious-about-your-investing/
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I understand what you are saying, but if you read the part I said about risk I talked about taking out what I put in so there is no more risk. I have put the money I had taken out of the stock into a new growth stock already that I think has potential. I can see your argument if I had taken out all my shares of the company, but I still own $55 shares. I didn’t sell the 95 shares for profit, but to eliminate the risk of that stock in my portfolio. Plus you have to remember I am still in high school so I have little capital to work with currently. Thank you for your insights though, I will be sure to check out your post!
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I understood – just worried you’re trying to reduce risk when you’re talking about a $480 investment. You’re making some good stock picks, but making the mistake I made for about 15 years and not building up a big position and holding on long enough. I used to buy 100 shares and sell if I made $1,000. Once in a while I’d have a “big score” and make $2,000 or $3,000. I wasn’t buying enough and exiting too soon, playing games.
About ten years ago I started buying larger positions and holding onto them. (While still selling if a position gets so large that it would be seriously damaging if it went under.) Now I have several positions where I’ve made tens of thousands of dollars. Yes, I have more capital to work with than you do, but you need to start somewhere. I’ve found it’s better to find companies you really believe in and buy in like a partner rather than trade stocks like a speculator. I’m hoping I can steer you to a better path early so you don’t need to lose time like I did. but then, it seems like everyone needs to lose some money and pay before the lessons really stick.
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I truly appreciate your advice, and you seem to know a lot so I would possibly be interested in talking more later on? And in case you haven’t checked today Scynexis went up 10%, which kind of sucks. You were right, and I wish I had been able to talk to you about it sooner! However, I am still glad I made that decision because now I have learned the consequences of selling too early, something I think was great to learn with low capital at 18 rather than with a bigger decision in the future. Thanks once again!
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That’s great! Don’t worry about the small size of your investments. Right now you’re learning how it works and getting a feel for the markets. When you get older and have some ‘real money’ to put to work, you’ll have some experience, and that’s great. Using actual money is nice. I’ll bet you can already feel how it differs from ‘pretend trading’ on paper. As for stocks to look at, I’d suggest taking a look at First Solar (FSLR) and Skechers (SKX). I’ve written about both of them on my blog, and currently own First Solar. Both are currently beaten down, and for my style of investing that’s a good thing. But of course do your own research and never buy something just because someone suggests it. And keep chugging along with the blog, I’m enjoying it. Good work.
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I have actually thought about some solar stocks, as i think that industry will grow in the future. The one i was looking at is SunPower (SPWR) though. Any thoughts?
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SunPower would be my second choice as far as panel makers go. I like First Solar because they are more profitable, and have a way better balance sheet. They have a different solar technology than SunPower. I also have shares of 8point3 Energy Partners (CAFD) which is a yieldco. It’s basically a company that SunPower and First Solar created to buy their solar projects. The idea behind CAFD is that it buys projects from the parent companies, and gives off good dividends to them (as they still own part of the yieldco), and investors like me who bought in later. If I were you, I’d look at all three companies and see how I felt about them. There are others as well. But be warned, the solar industry has been in freefall lately, and could go lower still. I think a lot of people brave enough to buy the panel makers now are intending to hold them long term.
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Yes, I do believe that if I were to invest in solar, it would be for the long term. But thank you for your help I will be sure to check out your articles I really appreciate it!
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Fist Solar only exists because the government is propping it up with subsidies. Their technology costs more to produce power than gas and coal, and a lot more than nuclear. For solar to be viable, the technology needs to get a lot better. I give it a 50% chance of not existing in two years, depending on what the government does.
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SmallIvy, gas and oil recovered their subsidies early on, and their campaign contributions keep them on top. When you say “cheaper”, you are talking about the here-and-now.
But, don’t forget the cost of health care ramifications, coastal cities being washed away, and what happens to the supply costs when the extremely mature fields in the Middle East run dry (i.e. Saudi Arabia), and wars breaking-out since there are no viable alternatives–if we keep our heads in the sand.
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Didn’t I hear that it would be too late to do anything about global warming (sorry, climate change) 20 years ago if we didn’t do something drastic immediately? We didn’t do anything – isn’t it too late now. and we’ll just need to face the consequences? And if CO2, an odorless, invisible gas that helps the plants grow is such an issue, why don’t we go to the only truly viable alternative for largely replacing fossil fuels today – nuclear.
The issue solar has and will always have is that it only works when the sun is shining. You need storage, and the current forms of storage are inefficient and/or environmental nightmares (just look at the rivers in China). Solar panel manufacture also involves using nasty chemicals that are true environmental disasters if you want clean air and clean water.
For solar to work you need the same thing that you have with fossil fuels – storage of carbon and hydrogen in plant life from which you can to provide energy as needed, either through combustion or through a direct chemical process such as in fuel cells. This means finding some sort of plant that grows quickly and that you can store for a long period of time to burn later. You could then plant vast fields of these plants, which would naturally collect and store solar energy when the sun was shining. If there is a bit more CO2 in the atmosphere at this time, this would help the plants grow.
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“It” being First Solar. I’m sure solar panels will still exist. Great if you live in the middle of nowhere in the Arizona desert.
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True, I definitely hear what you’re saying. They definitely have potential but are also very very risky.
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You don’t want my stock picks. And forget HPY, Wharton is where you belong! Keep us posted on your college progress.
I nominated you for the Sunshine Blogger award and asked you questions about money, since that’s your goal.
https://justmakingcents.com/
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I will be posting another article soon on my updated college application process. Also thank you for nominating be for the Sunshine Blogger, is it very hard to write that post?
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Great. Looking forward to reading the update.
The post is only as hard as you want to make it.
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Congrats! Nice move. Since I use a different system of investing, and am at a different stage of life, my stock picks are more dividend oriented than growth oriented, since I’m seeking income. Thanks for stopping by my blog. It’s great to know someone else is actually interested in my investing posts. 😉 ~B-
typebeaminus.wordpress.com
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No problem, thanks for stopping by as well! Yeah my stock investing strategy is probably different than most because I am so young and have a pretty high risk tolerance at this stage of my life!
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Fair enough… I’d like to be around when you make your first million. 🙂
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Hopefully thats soon enough 🙂
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Your second stock–a penny stock, meaning more potential volatility–has never turned a profit. Be careful, and consider that first-person actions might be perceived by others–either as a specific stock recommendation, or by specifically recommending penny stocks–in general.
Twenty years ago, there were many “day-traders”, who were constantly moving in and out of various stocks–just playing the short-term ebb and flow. And in some cases, the particular stock may skyrocket, or sink into the ground. Those people had no understanding as to whether they were buying or selling a stock. In many cases, they didn’t know what the company did, or its industry. Day traders have long since found “other pursuits”.
Better post your Balance Sheet so that readers will know whether your blog posts–think attempted advice–are not worth pursuing. But, that’s just my assumption re: your asset base.
Keep blogging, but develop a context in which to operate.
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I understand what you are saying completely! I made sure to put disclaimers in my post, because I was not trying to recommend the stock I was trying to get down the reasons why I liked it for my own personal records!
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Mr. Hunt, I believe that most people will agree that: “There’s no such thing as a free lunch!” When people read or watch something about how someone else made a killing–gold, options, oil partnerships, water stocks–they don’t go back and look at disclosures.
Legally, you might feel safe–and maybe you are. And, even if you are not trying toe cause harm to anyone–if they do lost money, which they cannot really afford to lose–THE DAMAGE IS DONE!
Just consider all of the people who have lost money, investing in shares of some of Donald Trump’s public companies. He received royalties, but they lost their shirts!
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So any suggestions?
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Mr. Hunt, aside from the legal issue (if any), human nature suggests that, when people read or hear about someone else “making a killing”, they do NOT go back and read the disclaimers–auto buyers’ guide, new medication, postings at parasailing venue, etc. Specific “perceived” investment recommendations might be acted upon by someone who: doesn’t understand the risks, has no idea as to the suitability (for them), and might not be in a position to lose the money they might invest.
My suggestion would be to provide strategies, such as: balancing a portfolio to reduce volatility; a reminder to get familiar with research on their brokerage company’s web site, and perhaps the pros and cons as to investing for growth versus dividends.
Sometimes a folksy approach to investing–in some cases–might help, such as: “Buy Stock like you Buy Groceries!” can help your visitors understand the importance of, let’s say, the earnings-per-share (or forward P/E) as compared to the price-per-share of one stock versus another. The analogy would be to chasing between two boxes of cereal. The apparent cheaper box of the same cereal might not be the best buy, when considered on a price-per-ounce basis.
The most important point, Mr. Hunt, is to keep blogging! You will learn as you go–about your topic, your readers and yourself.
P. S. Reference the commenter about changing your blog title, how about: “Millionaire in the Making!”?
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