Buying and selling stocks

Posted on June 6, 2010

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There has been a lot of chatter and people asking me how I buy and sell my stocks. I don’t have a lot of strategy on this, maybe a little, but nothing iron clad. It ebbs and flows. What I LIKE to do keeps getting steamrolled by running out of shares and I have to flip stocks more aggressively. To be honest I hate it. I love my portfolio. I hate selling people who are doing well and that I connect with, to be able to sell more stocks. I have racked my brain trying to figure a way around and it have not been able to come up with anything. That is beside the point anyway. Here is my logic in buying and selling.

Why I am addicted to new people stock.

When I joined Empire Avenue there was no newbie buy up. A couple of people bought 5 or 10 shares in me, but nothing crazy like we do now. It was a day or 2 out of the reset and no one had money to do that anyway. And I wasn’t in the friends and family beta,  so I don’t know what they did then.

When someone would buy me, I would take that little bit of money and go buy someone else. 5 or 10 shares depending on what I could afford. Buying people all over the map brought me in decent dividends. I would end up having a high percentage in those peoples stocks and it would pay me well overnight and I would go start the cycle again. It also got my face all over the place.

I am off topic again, but WHY I like the newbie stocks is because it is nice to have a little money to go and buy people all over and introduce yourself. And everyone else is doing it too, which gives the new people an artificial jump in stock price, although this is a double-edged sword. I have touched on that all over the place on here and won’t go into it too much again. If I REALLY need cash, flipping these stocks will give it to me, but at the cost of discouraging some new people who do not get exactly what the bump is and then get discouraged when their stock drops.

Buying in quick at 10 has a couple disadvantages; you do not get to read their profile, since they don’t have it up yet, you do not get to see if they have a blog or a twitter or Facebook, you don’t really get a feel of what they are about. You don’t even know if they just showed up and went WHOAH and took off  (it happens) in which case they have hooked NOTHING up and will not make you any money. The blog that they do hook up is after you buy, so unless you go back and check you don’t know that you should be endorsing one.

Also, when you first join, the whole thing is overwhelming. You know it, you have been there. Stuff to fill out, wicked video to watch (you DID watch the video right? If you didn’t go watch it now, I will wait) and they don’t quite get it yet. Their stock price is probably not going to rocket off just yet. So buy in, but be careful.

I have been buying in at 50 for the most part on this now so that it stops wrecking the second part of my so-called “strategy” lol.

Why I am Addicted to people coming off the Newbie Bump

THIS is where I like to spend my money and where I make the big eaves. A couple of days after people join, everyone starts dumping the newbie stock. It kind of steamrolls. One person will flip the stock, then the next and the next and that little price dip turns into a huge dip. and they end up back in the 10-11 range. The Influencer is now freaking out. They thought they were doing really, really well. Their stock was going through the roof. But their stock wasn’t going through the roof from their actual influence, it was going nuts because everyone is watching newbie row and buying stocks. This is the point where people step back and look at what the do on twitter and on Facebook and their blogs and start getting it together. They go look for answers. What can they do to tweak their stock price?  The answers are pretty simple, a few status updates, a few tweets, a blog post or two and just talking to people and your stock suddenly goes from 10-18. Exactly where it should be for someone who does a little bit, but does it smart.

I want to buy THOSE stocks while they are on sale! I want them at the 11 range so I can watch them make REAL gains and start really having fun. They aren’t overwhelmed anymore and they are finally able to connect with people and talk and share and this is where the interesting meet ups happen.

This is also where buys in you happen. Empire Avenue has a lot of weird emotional stuff happening. We can deny it all we want, but it happens. It hurts when people sell you, I am glad I cant see it anymore unless I happen to see it on the bottom of the screen. I get that logically that person needed to sell me for some reason, but it pokes at the ego. When people are selling you all over it, it sucks a lot. Then someone comes in and buys you, while you were way in the negative for the day! You like that person a whole bunch. You tend to buy that person back. You talk to that person. A lot of the time, that is someone who sticks to your circle of influencers, and the ones that HURT when you have to sell them to buy more upgrades. I keep buying those people, even though logically most of the ones that bought me at that stage have plateaued, I don’t care. I want those people in my portfolio! Emotional and irrational? Maybe, but I don’t mind.

How I decide when to sell

So I have told you on here many times what I look for when I buy. Now here is how my logic goes for when I sell. Keep in mind that the stocks always seem to go up right after I sell. So if I happen to sell you, don’t worry, it just means you will hit the leaderboard soon.

I buy newbies. I give em a day to hook up their Facebook etc. I go check and make sure it is there. I know it is a lot to take in at once, and I allow for that, but over a day I am just losing money. I sell. The newbie stocks (when I don’t have an upgrade I need to buy) I will go check and see what their twitter and Facebook activity looks like. You basically have 4 days to make it to about 13, 13 is a nice easy number to hit. A point a day at the beginning is easy. If you are making that I keep it. If you are making more, I go buy more stock. If you are not active and are losing money (not just getting newbie bumped) then I sell. I can make those eaves work somewhere else. This is where I like to bump my stocks up to the 250 mark. I am cashing in on you hitting about 18. Once you hit 18-20 depending on your momentum I drop it back to 75 ish (this is new I liked 150 but I needed to buy upgrades).

I DID have a nice system in place for people I didn’t want to sell. They were stocks that I would hold 123 shares in. Those were my circle of people I didn’t care if they moved I just felt that they were people whose content I enjoyed and who I connected with. People who were actually influencing me. But since I keep running out of stocks and the upgrades are crazy high I have had to drop most down to that 50-75 range too 😦

So that is the LOGIC of when I buy and sell. In my head at least. Do I always follow these rules? No They change daily. A lot of it is gut, a lot of it is watching people interact and seeing how they take to twitter or to Facebook.

You will find your own way and adapt, but that is my thinking on it. Feel free to add your thoughts to the comments and we can have a discussion on it if you like. I am by no means an expert on buying and selling stocks. It is about connecting with people and I am really too emotionally attached to a lot of my stocks to be able to buy and sell with nice cold logic :/

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