Today I want to share one of my top Empire Avenue strategies… it’s about the big mo – momentum. Momentum will either kill you or propel you to new heights in this game. Here’s why and 5 tips on how to get it.
Premise #1: Most EAv players are market followers. If they see a stock that’s up they buy. If they see a stock that’s down they sell. Most people don’t look at how a stock’s share price is trending or its ROI (dividend divided by share price), even though those factors are more important.
Premise #2: EAv is the biggest momentum killer. Every day when EAv calculates your earnings and dividend, they also recalculate your share price. Even if your share price was up through the course of the entire previous day, EAv may recalculate your share price lower and put a big yellow negative number on your profile.
The problem with this goes back to Premise #1. Most people buy and sell based on the current day’s change in share price. So, for example, if your share price gained 1e the previous day but EAv recalculates your share price down 0.25, people will look at the -0.25 and sell rather than realize your share price up 0.75 in the last 24 hours and buy (or look at your ROI).
Conclusion: The most important thing you can do is overcome a EAv share price hit as quickly as possible. As soon as some people see that negative number, they will sell, which will take your share price even lower causing more people to sell, and before you know it your share price is in a downward spiral which it will take days to recover from. So, you’ve got to nip the dip and get your share price positive as quickly as possible!
5 Tips to Getting the Big Mo on Empire Avenue
1) Check your share price early. Figure out when EAv recalculates your share price and check it as soon as you can each day.
2) Sell low performing investments. You need a lot of eaves to buy other stocks. Don’t be a market follower and just look at today’s change and sell, instead sell those with a low ROI and/or whose share price is trending down.
3) Buy back people who recently bought your shares. There are a lot of people on play EAv with a reciprocal buying strategy. Even for those who don’t, it is human nature to want to help those who help you. I’m not suggesting you buy everyone who has recently bought in you, but everyone who has a decent ROI and share price trend. (To do this, click the “Profile & Lists” tab, click “Shareholders,” click the “purchase time” option)
4) Buy more shares of people who have a good ROI and have bought your shares in the past. Some of them will see your purchase and buy more of your shares.
5) Send out a shareholder message. I always see a surge of buys after sending out a shareholder message. If you do this, don’t beg and ask people to buy more shares to turn your stock around. Make a good case for why you’re a good investment. Smart investors see an EAv-induced dip in share price as a buying opportunity. They’ll appreciate you letting them know.
On a positive note, f the EAv gods bless you and recalculate your share price higher, then you’ve got a great opportunity to gain big that day. Use the same 5 tips above to take advantage of that early momentum.
Have you seen how early early momentum can make or break your day on EAv? Got any other tips on how to overcome a negative share price quickly?
– Paul (e)PDSTEIN
Empire Avenue Tips 