SNOW Case Study: How DynaLogic Helps You Mitigate Losses
Following DynaLogic's sell signals on SNOW would have saved you $20k on a $100k investment versus buying & holding
DynaLogic is proprietary software that helps you buy low and sell high. Once you subscribe, we send out daily signals that alert you to sell a stock when it’s becoming overbought and buy a stock when it’s becoming oversold. We are not financial advisors and are not making predictions about the future. Instead, our Buy/Sell signals are based purely on a mathematical formula.
Snowflake Inc. (SNOW) is a cloud computing company that offers cloud-based data storage and analytics.
SNOW went public at the end of 2020 for $220/share. But, it currently trades at under $140/share as of early December 2022.
Let’s look at an example of how following DynaLogic’s Buy/Sell signals could have helped you optimize your investment in Snowflake (SNOW) from the time it went public.
How DynaLogic Could Have Helped
Using real stock price data from Snowflake, let’s examine how following DynaLogic’s Buy/Sell Signals could have led to a better outcome than simply buying and holding the stock. The time frame is from September 17th, 2020 (SNOW’s IPO) until November 20th, 2022.
Buy and Hold Strategy
Let’s say that you purchased $100,000 worth of SNOW on September 17th, 2020 when SNOW was trading for $227 per share. You would have purchased 439 shares.
As of November 20th, 2022, you’d still own 439 shares @ $136 each for a total value of $60,015
In other words, you lost $39,985 on your investment.
Following DynaLogic
Now, let’s examine the same exact scenario but assume that you are following DynaLogic’s Buy/Sell Signals.
Again, let’s say that you purchased $100,000 worth of SNOW on September 17th, 2020 when SNOW was trading for $227 per share. You would have purchased 439 shares.
In 2020, we issued 9 sell signals, mainly during the period of December 3rd, 4th, and 7th after SNOW’s price had risen 65% in a matter of weeks.
In 2021, we issued 11 more Sell signals throughout the course of the year.
And, in 2022, we issued 23 total Sell Signals. In particular, we issued Sell signals on August 25th and 26th after SNOW’s price had spiked nearly 30% in a few days.
Assuming that you had followed our Sell signals, you’d have earned $48,960 from selling your stock.
On top of that, you’d still own roughly 252 shares @ $136 each, or $34,435 total.
After paying capital gains tax ($2,675), the total value of your investment (what you sold + your existing holding) would be worth $80,719
In other words, you would have only lost $19,821.
In this scenario, following DynaLogic’s signals would have saved you $20,164 when compared to a buy and hold strategy.
Obviously we want every stock we buy to be a winner. But that’s not reality. The reality is the losses count just as much as the gains. DynaLogic is there to help you mitigate what could have otherwise massive losses.
Bottom line? Just do Something!
DynaLogic is not an investment advisor. Our Sell signals are based on historical price data and help you take money off the table when you’re up or establish large positions when a stock is down.
Our signals are typically quite small and will only prompt you to sell 1% or so at a time. However, this small action compounds over time and, as we just saw, the result can be tens of thousands of dollars in your pocket. If you have a stronger opinion, want to hedge your risk even more, or don’t want to make that many trades, you can always execute sells larger than our recommended %.
We don’t tell you what to buy or sell. We just tell you when you should be taking action. Bottom line? Just do something!
We hope that you’ve found this article valuable when it comes to learning how DynaLogic can help you maximize your stock investments.
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