Selling Strategies: the Science of Pressing "Sell"

Have you ever heard a phrase of something to the sort saying “There’s more than one way to do things?” I’m sure you have. And selling in the stock market is no different. Now I’m hear to tell you about all the known tactics by any means possible for conquering the Stock Market by achieving that magic word, profit.

1. Day Trader.

This type of investing is not my favorite by a long shot, but many people use this method and are quite pleased with it. Futhermore, many people have made quick money with this approach, so I tell you what it encompasses in case it’s your flavor of Slushy. What Day Traders usually do is:

1- Have a LOT of neopoints on hand.

2- Buy stocks at a high price.

3- Sell when stocks move 10-20 points in one day.

The reason they need a large amount of NP is basically to fund their efforts. They want QUICK NP NOW. And to do it, they need to buy stocks that are higher in price, as they tend to fluctuate more. Normally, they buy 1,000 shares of a stock, and sell if it moves 10-20+ points, pocketing a cool 10 grand or so. It can be very quick, and very profitable, but a certain amount of luck is involved. Stocks that are high never stay high, so you could be in for trouble if it plummets. Look at BOOM. At one point BOOM was at 256. I bet many traders bought BOOM for 200NP+ and look what happened. However, look at YIPP today. It’s up from 102 to 118. Some traders might have pocketed 16,000NP in under 24 hours. Not bad not bad. Overall, this is for the risky investors, the ones who ‘don’t mind to live dangerously’ and want money QUICK. However, keep in mind, the possibility of getting burnt is always there.

2. Short Term Investor

The next step on our scale is the Short Term Investor. These investors also tend to want profits quickly, and aren’t as patience as their Long-Term Counterparts. However, with these investors, they also aren’t nearly as risky as the Day Trader. These investors tend to buy close, if not at the 15 NP per share mark. Once the stock jumps a few points, these investors tend to sell. Therefore it’s possible to have a sell on the same stock you bought earlier in the week. These investors also seek maybe 10,000-15,000 NP in profit, and rarely hold onto a stock once its gain is 100%. (Though I have seen variations when investors sell at 45 or so for a 200% profit.) Most beginner investors start out on this path, and for a good reason. Since playing the stock market is expensive, newer members don’t have time to hold stocks for months until they reach 60. With this approach, one can still gain profit from selling, and also sell sooner. Therefore, they can continuously pump money into their stocks, and also quickly realize profit, (though small) from it. Overall, this is a sound process for beginner investors, or investors who want to play it conservative, and still achieve a modest, but steady profit.

3. Long Term Investor

Ah, finally, the top of the top, in my opinion. This is, by FAR, the method of most sellers, and also, the most rewarding and satisfying. This method, though, be warned, takes money, time, and patience. It involves a substantial amount of cash input, and the results may not be seen for months or years but when you get to that point, it’s smooth sailing from there. Overall this investor shares the bond with the Short-Term counterpart in still buying near or at the 15 range. However, this investor isn’t pleased with a 100% gain. 200%?? No. Normally most Long Term investors wait for the 60 mark or over, realizing at least a 45,000 NP profit on stocks. This investor, from waiting so long, has often many shares of stock in his or her portfolio, and often sells in increments. Myself, I normally sell 50% at 60-65, 15% at 75, 15% at 90, and the last 30% I wait for a triple digit sell. Yes, a triple digit sell. For example, I sold Yipp earlier this week at 101, realizing an 86,000 NP profit on a mere 1,000 shares! Now I must also tell you I bought those shares in April and May, so it took over 4 months for me to see return on that stock. It takes time to say the least, and as I said, patience is imperative. However, because of that, I achieved 86,000 NP, not 15,000 NP. Also, I minimized my risk by buying those shares at 15 NP a share. Sometimes however, it isn’t just 4 months. I held AAVL one time for nearly 18 months until it sold, but when it did, I achieved maximum profit.

This course is only for the fairly rich, as it takes a constant input of neopoints for some time. However, once the sells begin to amass, one doesn’t even need to drop another penny out of the bank or wallet to buy stocks. Alone in July of 2005 I realized 705,000 neopoints PURE profit. That will pay for ALL of August’s stocks without withdrawing a thing. (Provided 31 days x 15,000 NP a share for 465,000NP). It’s well worth the wait. August has been a slower month, but I’ve still achieved 354,000 NP pure profit, and that’s NOTHING compared to some who average well over a million NP a month pure profit.

Overall, though, if you want that 3 million NP weapon, or what, the size 200 shop, or need the pet with 200 HP, the stock market is a very real option. However, diving into it unprepared can lead to disaster. I hope this article has enlightened you to all the methods possible to make money in the market. All 3 strategies make money, and all 3 have pros and cons. See which one fits you to maximize the profit, and overall, have fun! For more information check my other articles in the Neopian Times or feel free to Neomail me! Thanks!