Stock Market

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Gavin63
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Stock Market
I have been hanging off selling hoping that some of the ones I have will be boomers.. The ones I am considering selling seem to be bouncing around the 50 to 70.. My overall portfolio is showing a healthy +34.45%. It is not that I desperately need the points and I have worked hard to build close to 250k shares at close to 4m cost and I want the best out of them. What is the general consensus here on the Market. Good time to sell or are they going higher.
darkelvensfi
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Joined: 25/04/2009 - 11:15pm
There's no way to really know, but chances are that they'll drop back down. Only a select few shares goes above 100 each year, and we've had two this year so far. But saying that, the 'economy' is strong, so there's a good chance of something else going up; by 'good chance' I mean 'better than usual, which is still pretty low'. The theory behind selling works differently depending on how you play Neopets. Most people hold true to a 'buy at 15, sell at 60' rule. This ensures that they make regular sales at a nearly ideal value. Put differently; most stocks do reach 60, so you're going to sell something of everything over the time you (most people) will play Neopets. But this theory works from the understanding that you'll not be playing Neopets forever, and will want to get some NP back to play with and enjoy. Your best profit comes when you buy at 15, but the higher the sell point the more that profit is. As some stocks do reach into the hundreds, you can theoretically hold off on all sales until they reach 200+ and make a huge profit. Rather than making 45k per sale, you're making 185k (looks like a winner, right...?). The problem with this strategy is that over the average Neolife, a person may not see more than 2-3 stocks that reach 200+. Meaning out of 46 companies, they're only going to sell 2-3, which is a lot of waste. But, say you never intend to stop playing Neopets, you would (conceivably) end up selling something of everything, given enough time. And that's where a higher sell point comes into its own. You will wait much longer for sales, but you will be making 4-5 times what everyone else is making (who sell at 60). This also means that the sales will be of much larger share quantities; like selling 50k+ shares at 200+... that's a bucketload of NP. But this does take a lot of time and dedication; I'd suggest that you'll be playing the stock market for 4-6 years before being able to make a sale like this. And you could wait years between large sales. But it'll be worth it. Eventually those 50k share sales will become 100k share sales and higher. So with these details in mind, you might be better able to decide on your own selling strategy.
EWP
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An option, if you have larger quantities of most companies, to step-sell. Say you have an average of 8,000 of each stock. You could begin selling, say, half at 60, than another 2,000 at 70, then 1,000 if it reaches 80 ... If it's one of the very few each year that makes it past that, you'll have some ready. If not, you are left with a 'starter set' for next run, and you've more than covered your cost of investment. To add to what darkelven said (which I pretty much agree with), one effect of waiting longer for higher prices is that your port will grow accordingly. I believe the numbers work out that a sellpoint of 60 will provide a stabilized portfolio of about 350k shares, while a sellpoint of 70 stabilizes around 600k shares. I don't have the numbers in front of me though, so I may be way off. The idea is the same: Higher sellpoint = larger portfolio = bigger less frequent sales. NOTE: The more frequent sales at a lower sellpoint might actually be more profitable. NOTE ALSO: I love talking about the stock market - I can't be held responsible if somebody brings it up!
Gavin63
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Joined: 23/07/2009 - 11:09pm
Thanks for the input.. I might adopt the tiered sell points.. As I dont really want to get rid of all my shares at this stage as I want to build up for when shop upgrades are costing me more than the profits I am making. So far most of my upgrades have come directly from my shop. Tha Shop http://www.neopets.com/browseshop.phtml?owner=galitare&misc Main Mall Info http://www.neopets.com/~vegemite_kid Branch Mall Info http://www.neopets.com/~Nlcfon
vw1282
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Joined: 10/04/2010 - 7:06pm
KSON made me rich. :) If you don't need the np, I personally just keep holding onto them. - - - - - x - - - - - x - - - - - x - - - - - x - - - - - My user lookup - vw1282 http://www.neopets.com/userlookup.phtml?user=vw1282 Check out my (toy) shop and beach/summer gallery while you're there!
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Nina
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My strategy is to look at the % Change box and when stocks reach +250%, to sell 'em. I figure if I make two and a half times what I put in, I'm satisfied! :P I sold all of my shares in three or four different stocks off just this past week by doing this. I guess that means I sell at lower than sixty per share, but after reading this, I'll consider selling at 60. I wouldn't mind growing my portfolio, and it just seems to hover around 180k shares with my sell point as it is.
Artemis
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Joined: 16/08/2009 - 1:01pm
I sell some at 60, then some at 70, ect. and my portfolio is hanging around 450k shares
mayarend
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Joined: 05/06/2009 - 5:50pm
~ May ~ The thing is you have to set at how much you want to sell it and sell it. I mean, it's the only way not to regret it, like, I set that I sell at 30. I get 100% what I put in, but it's faster... I'd say setting it at 60 is a decent profit, if you set at more than that, you might just wait a bit too much... Just keep buying, you'll never sell ALL of your stocks at once anyways, the overall doesn't matter... My overall is always negative lol
~ May ~