Sunday, June 27, 2010

What is your EmpireAve Strategy Style?

Other than those that have had the honor (and advantage) of selling out their shares, no one relies solely on social activity or solely on selling shares to increase their stock price.  Why?  It's near impossible to avoid people buying your stock (unless you are a crazy unicorn lover tweeting like crazy for people to sell) and when you see the gain to your stock, you try and take full advantage of the momentum.  If you rely only on social activity, there would be a direct correspondence to your stock price.  If you had X amount of social activity, the max your share price could be (on that alone) would be Y.  People who rely to heavily on social activity alone realize it every time they are less active, as their stock price takes a dive, and takes longer to recover.  People who rely too heavily on people buying their stocks have a different problem:  becoming too stagnant.  In much the same way, they need people to continue buying their stocks.  If their gains tamper off for too long, people will naturally start thinking about selling them.  In much the same way, once a couple people sell them off, the downward spiral begins.

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