Now imagine you want to buy a stock, but no-one is offering it at the price you want to pay. If you are confident that you would want that stock at “such and such” a price, then put up a speculative buy order at that price. You’ll be amazed how much stock I have recently managed to acquire at “steal” prices that way. My guess is that this phenomenon exists for two reasons.
Firstly, I think anyone who wants to generate cash for some reason (perhaps to free up cash to buy something they want or perhaps to liquidate to claim a prize) will tend to sell below the price they ideally want. I think of that as “fire sale pricing”.
Secondly, I think people tend to be attracted by that green arrow that says “you can sell at a profit”; sometimes irrationally attracted. There’s still a lot of stock out there that was given away in the Big Giva and many players are not treating that “free” stock with the respect it deserves; rather than trying to work out what it is really worth, they simply see that green arrow and sell when the can.
OK, so snapping up stock that was given away to the masses paying knock down prices makes me feel a bit like a Russian oligarch from the 1990s, but I don’t care how it looks. I want to win at ExtZy, especially as zoints mean prizes and (in my case) prizes mean charitable donations. £300 in donations I have made so far and, at current prices and exchange rate, a further £700 if I were to liquidate my entire holding. Grand.
So, I’ll now summarise the three tips I’ve given over the past three weeks and name them all:
- Tip One: Utilise most of your credit line at all times; credit costs nothing in ExtZy and dividends on your holdings soon add up. “THE PENSIONER”.
- Tip Two: Buy and sell regularly, trying to maximise potential/future earnings by looking ahead and making capital gains along the way. “THE BARROW BOY”.
- Tip Three: Have plenty of speculative buy and sell orders out there; there’s always a chance that someone might buy you out at a premium or sell to you at a discount. “THE OLIGARCH”.