Thursday, October 2, 2014

Why do investors share their picks?.. (Part 3 of 4)

Part 3 (The sellout)

This is the single and most important moment on the investor's strategy. After the burst of followers buying the recommended pick, the investor must identify the right moment to dump his 30 cards bought for a total of 900 Event tickets. If done too early, it can result in reduced profits, if done too late, the investor will be competing to sell with everyone else, resulting in potential losses.

Once the followers copied the investors pick and raised the value of the card, usually, the investor takes the opportunity to dump his copies of that same card. When this is done at the same time or just after the announcement to pick the card, it usually results in a soft price rise while the investor's cards get sold for little profit. When this is done days/weeks after the announcement and prices reach a peak, it will result in a big downwards spike. If timed perfectly, the investor can pull about 7 Event Tickets profit for each copy of the card bought at 30 "tix", resulting in a total of 210 Event Tickets profit.

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