IIIlusionist [253384] —
Original article
In one of our recent articles we reminisced at length about our memories of the old stock market system, aka the gold mine. This was a time when players would pool their money, either with strangers or among faction members, in order to drive up stocks and sell them for a fat profit. Although many wish we could return to such a profitable time, there is no doubt the stock market of old was not a sustainable system. The new and improved Torn stock market was fairer, less susceptible to manipulation, and also introduced the concept of shareholder dividends.
As with real-life trading, the basic principle is fairly straightforward; buy low and sell high. Sounds easy enough right? So you click on over to the stock market and stumble across a ridiculously low-priced offering. Your eyes light up, and you begin mentally spending the imaginary dollars seemingly coming your way. However, on closer inspection, you also find a big fat zero next to the number of shares on the market.
Share availability will be your first hurdle, and when there are only a few available, purchasing them at a desirable price will be your second obstacle to overcome. The good news is that the system adds shares to the market randomly, meaning those who watch the market closely can swoop in and acquire a huge number of shares with a little luck. And the bad news? These added shares are bought up as quickly as they are added, sometimes in mere seconds.
You won't be the only player looking to make some dollars, and chances are at any one time there will be a horde of other hopeful investors glaring at the stock ticker, their eager fingers ready to click and pounce upon undervalued stock. The trick lies in buying shares at a low enough price that you can make a decent profit, without waiting too long so that all shares are bought. But with a bit of luck, a set of swift digits and a meticulous stakeout of the stock market, you may be able to score yourself some valuable shares at a very nice price.
At this point, you'll busy yourself calculating what price per share you aim to sell at, once more visualising what you'll do with the profit that comes with a lucrative stock market play. But that's all in the future, your work is done for now; it's time to sit back and watch your stock soar in appreciable value
Two months later.
You stare blankly at the screen with a tear in your eye. The stock you invested in is not only still in your portfolio, languishing unsold but it is also down 34% in value. Herein lies your third major hurdle on the road to stock market riches - stocks can rise, but they can also plummet, duh.
Looking at a stock's previous performance and future forecast will help you avoid such incidents and invest smartly, but stocks can be an unpredictable mistress, capable of bucking trends at any moment. Often you'll find yourself choosing between selling underperforming shares at a small loss just to avoid a crippling one, or holding on to them until they eventually rise again. This is, of course, a risky strategy regardless of your wealth, and it could leave you with a case of permanently crossed fingers if you're not careful.
In either case, whether you stick or twist with your portfolio, you'll need to give most shares at least a few weeks bedding-in period to make the big bucks. Then, with any luck, you'll be watching just at the right time to notice your investment has paid off. The shares you've stuck with through thin and even more thin have finally borne fruit, so what happens now?
A further month later.
Hurrah! Your stock has breezed past your initial purchase price, stormed above your target sell price, and now sits comfortably somewhere in the heavens having skyrocketed beyond your wildest dreams. The light in your eyes has rekindled and you put your shares up for sale. Once again, your work is done, and it is time to sit back and wait for the stocks to sell. One day passes, shares haven't sold, three days pass, shares haven't sold, six days pass, shares haven't sold. Congratulations, you have reached the fourth hurdle - trying to turn those bloated shares into cold, hard cash.
Selling your shares isn't as simple as unloading them at a time which suits you, as the timing must also suit either the system or player making the purchase. Think back to when you first wanted to acquire yourself some shares and ask if you'd be buying this stock if you were in their shoes - the answer is probably a big fat no. When the market is flooded with shares you could be waiting a while before someone is willing to take them off your hands, and it's more likely this will occur when your shares take a small dip after an initial rise, or if this particular stock is in demand for some other reason.
If you are lucky your shares will sell while the stock is still relatively high, but if you cannot part with them in time before the share price drops too far, you may be waiting a long time before another opportunity presents itself. So three months down the line after your initial investment you could find yourself sitting on a nice profit, but equally, you may be burdened with a raft of unsellable shares tying up your finances. Your flexibility on this matter is absolutely crucial to your long term success, because those who can afford to wait and see inevitably gain more than those who must sell to survive.
Whether this remains the case in future is by no means a certainty, though, as changes to the stock market are of course a distinct possibility. But will significant alterations take place anytime soon? Probably not. There are many other projects in the queue before the stock market can be looked at, however, Chedburn [1] has mentioned his desire to see the instant NPC buy-back return. Obviously, if this occurred it would need to do so without destroying the economy, and having to consider the larger field of effects, it could prove difficult to find the right balance and system.
But that's all for the future, because right now, as we've discovered, stock market success isn't as simple as buying low and selling high. And subsequently, the stock analyst honor bar remains as elusive as ever.
As with real-life trading, the basic principle is fairly straightforward; buy low and sell high. Sounds easy enough right? So you click on over to the stock market and stumble across a ridiculously low-priced offering. Your eyes light up, and you begin mentally spending the imaginary dollars seemingly coming your way. However, on closer inspection, you also find a big fat zero next to the number of shares on the market.
Share availability will be your first hurdle, and when there are only a few available, purchasing them at a desirable price will be your second obstacle to overcome. The good news is that the system adds shares to the market randomly, meaning those who watch the market closely can swoop in and acquire a huge number of shares with a little luck. And the bad news? These added shares are bought up as quickly as they are added, sometimes in mere seconds.
You won't be the only player looking to make some dollars, and chances are at any one time there will be a horde of other hopeful investors glaring at the stock ticker, their eager fingers ready to click and pounce upon undervalued stock. The trick lies in buying shares at a low enough price that you can make a decent profit, without waiting too long so that all shares are bought. But with a bit of luck, a set of swift digits and a meticulous stakeout of the stock market, you may be able to score yourself some valuable shares at a very nice price.
At this point, you'll busy yourself calculating what price per share you aim to sell at, once more visualising what you'll do with the profit that comes with a lucrative stock market play. But that's all in the future, your work is done for now; it's time to sit back and watch your stock soar in appreciable value
Two months later.
You stare blankly at the screen with a tear in your eye. The stock you invested in is not only still in your portfolio, languishing unsold but it is also down 34% in value. Herein lies your third major hurdle on the road to stock market riches - stocks can rise, but they can also plummet, duh.
Looking at a stock's previous performance and future forecast will help you avoid such incidents and invest smartly, but stocks can be an unpredictable mistress, capable of bucking trends at any moment. Often you'll find yourself choosing between selling underperforming shares at a small loss just to avoid a crippling one, or holding on to them until they eventually rise again. This is, of course, a risky strategy regardless of your wealth, and it could leave you with a case of permanently crossed fingers if you're not careful.
In either case, whether you stick or twist with your portfolio, you'll need to give most shares at least a few weeks bedding-in period to make the big bucks. Then, with any luck, you'll be watching just at the right time to notice your investment has paid off. The shares you've stuck with through thin and even more thin have finally borne fruit, so what happens now?
A further month later.
Hurrah! Your stock has breezed past your initial purchase price, stormed above your target sell price, and now sits comfortably somewhere in the heavens having skyrocketed beyond your wildest dreams. The light in your eyes has rekindled and you put your shares up for sale. Once again, your work is done, and it is time to sit back and wait for the stocks to sell. One day passes, shares haven't sold, three days pass, shares haven't sold, six days pass, shares haven't sold. Congratulations, you have reached the fourth hurdle - trying to turn those bloated shares into cold, hard cash.
Selling your shares isn't as simple as unloading them at a time which suits you, as the timing must also suit either the system or player making the purchase. Think back to when you first wanted to acquire yourself some shares and ask if you'd be buying this stock if you were in their shoes - the answer is probably a big fat no. When the market is flooded with shares you could be waiting a while before someone is willing to take them off your hands, and it's more likely this will occur when your shares take a small dip after an initial rise, or if this particular stock is in demand for some other reason.
If you are lucky your shares will sell while the stock is still relatively high, but if you cannot part with them in time before the share price drops too far, you may be waiting a long time before another opportunity presents itself. So three months down the line after your initial investment you could find yourself sitting on a nice profit, but equally, you may be burdened with a raft of unsellable shares tying up your finances. Your flexibility on this matter is absolutely crucial to your long term success, because those who can afford to wait and see inevitably gain more than those who must sell to survive.
Whether this remains the case in future is by no means a certainty, though, as changes to the stock market are of course a distinct possibility. But will significant alterations take place anytime soon? Probably not. There are many other projects in the queue before the stock market can be looked at, however, Chedburn [1] has mentioned his desire to see the instant NPC buy-back return. Obviously, if this occurred it would need to do so without destroying the economy, and having to consider the larger field of effects, it could prove difficult to find the right balance and system.
But that's all for the future, because right now, as we've discovered, stock market success isn't as simple as buying low and selling high. And subsequently, the stock analyst honor bar remains as elusive as ever.
Original article
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