Flip Funds Versus High Yield Dividend Funds on Empire Avenue
Another Day Another Eaves.
Today I'd like to talk abit about investor buying strategy on Empire Avenue. Many of you are new to the fun filled game of swimming with investor sharks in a tank filled with blood. Your blood.
Before we start let's start at the basics --- "The Jump"
You've just joined Empire Avenue and your muddling through all the settings and options. Your fairly social media savvy and have lots of accounts you can hook up. Before you even get a chance however all of the sudden the shareholders start rolling in ... and they are rolling in BIG. 200 shares after 200 shares in you start getting purchased, more people than you could possibly hope to buy back.
What's happening? How did these people find you? Why do they want to buy into you, a fresh faced noob on the Avenue?
Remember yesterday we talked abit about The Team Zen Effect . Entire communities out there exist to find a good deal. In yesterday's example (e)CRISPM had fallen through the cracks somehow and managed to raise his dividends to such a level that he was a very good buy. What's happening to you is different from this.
Everyone who joins Empire Avenue starts with a base share score of 10. The moment however you link your social media accounts your share price generally jumps up 5 - 10 points. This leads to frenzied investor activity as everyone rushes to get "in" on you. This in turn skyrockets your share price even higher as share price is in part effected by how many people are "buying in" to you.
The first day or two on the Avenue is grand. Your stock price is skyrocketing, eaves are flowing in like candy. And then it happens. The Flip.
The Flip occurs when investors start to bail out of your stock. Why, why are they so mean, why are they abandoning you? Well the truth is it's nothing personal .... it's just that most new stocks get accelerated so quickly their dividend yield no longer reflects their actual share price. So investors dump you for profit. Remember all those investors who bought you at 10 - 15 a share? Well now that you are priced at 30 a share selling you equals pure unadualterated PROFIT. The sharks on the avenue love profit. Especially easy profit made at the touch of a button.
The Team Zen effect is a two way street sadly. Once your share price starts to dip there is blood in the water and this leads to a stampede of selling. This is why the second or third day on the Avenue is usually as dark and gloomy as the first day was glorious.
Now that we've got that out of the way let's talk about the different types of stock available on Empire Avenue. Keep in mind these are just generalities I'm lumping different stocks into, everyone will have their own opinions and ideas.
So with that said there are three kinds of funds I've identified on Empire Avenue
1. Growth and Flip Funds
Growth funds are those stocks that are new to the game and early in their life, While many of these funds are flipped for profit early on, Some represent turbo charged growth ... look at the leaderboard and check out (e)PIRILLO . At 217 a share he's pretty expensive but even Pirillo was once a growth fund and at different times in his stocks life he's been targeted for flips ... but still imagine having got in on Pirillo when he cost 17 a share!
The problem with being a growth fund is that it also makes you a great stock to flip for profit. Flip Funds are those that I sell for profit. Typically this means 80 - 90 percent of anyone brand new on the Avenue, although sometimes a facebook triggered investor stampede on an overlooked stock can lead to a good flip as well. Protecting yourself from being flipped is accomplished by one thing and one thing only.
Produce good daily dividends.
Dividends are produced by your social media activity. Using PIRILLO as our example yet again, he has been protected time and time again from being flipped for profit because it is MORE PROFITABLE to hold onto him and collect the morning dividend cheques.
2. High Yield Dividend Funds
High Yield Dividend Funds are those stocks which I refer to as the "big boys and girls" of Empire Avenue. These are your leaderboard stocks those priced at over 100 a share. Typically most of them provide a 1:1 or better dividend per share ... these are the stocks that will pay your bills every night providing a steady stream of eave income each morning. High Yield Dividend stocks can also come in lower priced flavours ... the key is to look at the dividend yield to ensure you are getting your eaves worth by owning them.
All of this leads to interesting gameplay strategies. My personal investment strategy is this:
I Buy growth/flip funds before the jump or just after and then sell (or flip them) for instant eaves profit after they have shot to the moon but are peaking out (no longer growing). The profit from the sale of those funds are then reinvested into hi yield dividend funds, while the principle from the sale gets reinvested back into growth/flip funds. This will slowly increase your daily dividends earned each day giving you more eaves daily to put into growth/flip funds in term producing more profit to grow your hi yield dividend funds.
The key to this particular strategy lies in the use of price alerts. Price Alerts can be sent to your email allowing you to quickly dump a stock that's starting to plummet ... after buying into a new stock be sure to set price alerts and constantly update those alerts ... that way when it comes time to sell you will be selling at the top of the hill rather than near the bottom.
That's it for today kiddies. Enjoy your next day on the Avenue and may it be a profitable one.

