I got asked about when to sell stocks on Empire Avenue yesterday. Not surprisingly, I have a few thoughts about this. As usual, your approach will vary according to what you are trying to accomplish on the Avenue.
I know that some of the experienced players will want you to know that they never sell. That is an awesome ideal, but most of us have limitations with eaves and portfolio slots. At some point, most players find a situation where they have to sell in order to buy something or someone.
First we might want to think about the folks that we should not sell. Don’t sell someone who is actively playing and invested in you because they are likely to sell you in return. That is a lose/lose strategy for you both in general. Don’t sell folks who have dividends of over 0.31 (e) per share because they are in the the top 5,000 players on the Avenue. That is important to remember if you are trying to increase your daily income from dividends.
So who to sell becomes the question. I generally sell stocks that are inactive, not invested, and have low (0.25 or less) divs. When I bump up against my portfolio limit, I sell more aggressively. You can check activity on the stock’s profile page, by clicking the stock on your portfolio view, or through any of the third party portfolio management tools.
I also sell miscreants. That includes folks who steal my or my friends’ missions. I also sell folks who sell me. I sell folks who are rude or abusive. Life is too short to deal with them. Folks in this category also get blocked; so I don’t invest in them later unintentionally.
I am less concerned about selling folks with falling share prices. Generally the cost of commission is greater than what I might lose in value. Even relatively inactive folks tend to hold their price with surprising strength. Often the inactivity is temporary; so the buy/sell would be a net loss.
Trying to daily churn your portfolio to buy the very best ROI, dividend production, or share price rise is a losing proposition. On the margins, the wild swings are impossible to accurately time. Buy good profiles preferably of folks you like. Have fun and watch your portfolio grow.