I Turned $8 Into $800 With Only 8 Stock Trades

This is how I turned eight dollars into $800 with only eight stock trades. Now get your pen and paper because this is completely replaceable. This is also only the beginning of my trading story!

So the way I turned $8 into $800 is through IPO investing. Now if you are unaware of what an IPO is here is a quick explainer.

What is an IPO?

An initial public offering or IPO, is when a private company becomes public by selling its shares on a stock exchange. Private companies work with underwriters to bring their shares to the public, which requires tremendous amounts of due diligence, marketing, and regulatory requirements. These shares are now sold to the public for the first time.

What type of companies go public?

There has been a lot of big IPOs this past 365 days from Coinbase, Airbnb, Bumble, Petco, Robinhood. But besides these huge companies going public, smaller companies go public every week and these are the companies I look at.

Now trading IPOs can be really really risky but as everyone knows, the higher the risk the higher reward.

Trading IPOs involves a lot of research. Now there’s A LOT of things you should consider but here’s my top 3 things you should look at first when investing in IPOs.

1. First is to read the Prospectus. It is the driest of reads your going to find but for me I’m kind of enjoy it. A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. It covers everything. The companies financials, the actual offering to the public, where the companies is going, it’s products, the sector stats, the risks involved, it has everything you would want and more! And you gotta read it.
2. The next is research the underwriter. Do they have a good track record? How did the most recent IPO perform, etc. A good underwater makes all the difference.
3. Last one is look at the sector its in. See how competitors are faring in these wild Wild West of times. Is the sector growing, shrinking, does it need innovation, etc. Comparing the financials is a must when considering whether or not to invest in that specific IPO.

How can I invest in an IPO?

Now how can you invest in an IPO, well there’s a couple different ways. The most popular way is to purchase right at open, risky but the only way to guarantee your investment amount and entry point. The second way is Pre-IPO. You can get access to investment pre-iso through your brokerage whether its Robinhood or Webull. I use Webull its my favorite and if you’ve never used Webull before sign up using my link and you’ll get 6 free stocks right now!

Here are my 8 trades

My first trade was on August 5th and it was MEGL. I got in Pre-IPO at $4/share and just got 2 of them. This is my $8 investment that started it all! Now Magic empire global is a holding company that engages in financial services. With mostly financial advisory services and underwriting services. They are underwriters. They had good financials, the prospectus was good, I liked the offering size, and the demand was there! MEGL opened at $5 and skyrocketed to $200/share. The stock halted about 5 times it felt like in the first hour but I was able to get out at 145/share which is a profit of 282$. I was ecstatic.

My second trade was TGL. Treasure Global, besides having a really cool name, hit all of the checkmarks that I was looking for when investing in an IPO. So I bought 13 shares at $4/share and trading was pretty stagnant most of the day. I decided to take a profit early and Sold those 13 stocks at 6.50 each which was a profit of $33. I will take an 70% return on my money any day of the week.

The next few trades were hits and misses. I decided to invest in 2 IPOs on the same day. The first was FRZA and the second was CHG. FRZA I had a same day profit of $114. Bought at 5 sold at 8/share. CHG was in the green for most of the day. Now my rule is to always take profits when you can for some reason I broke that rule as I’m not perfect and I held it for 4 days. Each of those 4 days were Red. I bought 47 share at $4 each and I sold 2.79 for a loss of $57.

Now my fifth trade was a scary one. It was LUCY. They had a disastrous opening day so I wanted to scalp a few percentage points since it took such a big hit day one. But after my investment it traded flat. This time I followed my rule and took profits when I could. I got a monstrous return of $.46 cents. I’ll take it.

Next was STBX. Now Starbox was my best return so far. I got in at $4/share but could only get 11 of them at that price point. No I definitely wasn’t cool with only getting 11 but I was very cool with what happened next. The price shot up to $40/share a 10x return instantly. I decided to sell 10 of them at 40/share and kept one just in case it pulled an HKD. It didn’t I sold that one at $6 giving my total profits at 365. This was trade 6 and 7.

Now the last trade I want to talk about is JZ. There was a lot of Jay-Z memes going around pre-iso so that’s only reason why I jumped in. Just kidding. But that didn’t hurt. In actuality it checked every box when looking into IPOs so I was super bullish. Now I only got 1 share at the price I wanted. So I had a $5 investment, just one $5 share. But on opening day the demand was insane and it shot all the way up to 100. I sold my share shortly after at 92 for a profit of $82.

Those were the 8 trades that netted me $835 in profit and that all started from a $8 investment. This is just the beginning.