Tuesday, October 28, 2008
Wednesday, October 15, 2008
Industry Play for Profit #3: Fundamentals
Open the page in your Ideas portfolio where you keep the industries you're going to work. Look at the top industry on your page, and see this:
The column on the left indicates the name of the Industry.
The second column from the left indicates:
O: the # of ideas I own
A: the # of ideas on the market, available to purchase
E: the # of ideas that exist in the industry
D: drop ratio ...
B: the # of blogs in the industry
The important number from this column is E: # of existing ideas. More in a bit.
The third column from the left indicates the current price per idea, the average price you paid per idea, and the total value of your ideas holdings in the industry. We won't be paying any attention to these values.
The last column indicates:
U: Upward Pressure
D2: Downward Pressure
Avg10: Avg. # of ideas produced in last 10 drops
Last: percentage price change on last production of ideas
1Week: percentage price change since 1 week ago
2Week: percentage price change since 2 weeks ago
So ...
The relationship of Avg10 to E (existing) is the most important thing we'll pay attention to. This relationship is the primary determinant of whether your ideas are in the green ("last") or in the red. What you're aiming for is this -- the value of "avg10" should be less than or equal to [1/3 the value of "E"(minus its last three digits)].
Sometimes, avg10 will be quite a bit higher than 1/3 E minus its last three digits, and yet the industry will still be in the green. Why? Because the D2 is incredibly low. Ultimately, as you work an industry, D2 will move into the 40s (.41 to .45) before the industry peaks, and U will move into the 90s (.91 to .95). The higher the D2 climbs, the lower the avg10 needs to be in relationship to E.
One more thing about this last column of numbers. When there are ideas on the market, and more drop onto them from a reindex, the price per idea will drop, and some of the ideas already on the market will be consumed. So, it's important that you buy up your ideas at each drop, and even when you're not actively working them that you check them periodically and buy up what's there. Often you'll see that U=0 and last is 7.xx%. This means that the above happened. Usually, one managed drop will reverse both of those and put last back into the green.
The column on the left indicates the name of the Industry.
The second column from the left indicates:
O: the # of ideas I own
A: the # of ideas on the market, available to purchase
E: the # of ideas that exist in the industry
D: drop ratio ...
B: the # of blogs in the industry
The important number from this column is E: # of existing ideas. More in a bit.
The third column from the left indicates the current price per idea, the average price you paid per idea, and the total value of your ideas holdings in the industry. We won't be paying any attention to these values.
The last column indicates:
U: Upward Pressure
D2: Downward Pressure
Avg10: Avg. # of ideas produced in last 10 drops
Last: percentage price change on last production of ideas
1Week: percentage price change since 1 week ago
2Week: percentage price change since 2 weeks ago
So ...
The relationship of Avg10 to E (existing) is the most important thing we'll pay attention to. This relationship is the primary determinant of whether your ideas are in the green ("last") or in the red. What you're aiming for is this -- the value of "avg10" should be less than or equal to [1/3 the value of "E"(minus its last three digits)].
Sometimes, avg10 will be quite a bit higher than 1/3 E minus its last three digits, and yet the industry will still be in the green. Why? Because the D2 is incredibly low. Ultimately, as you work an industry, D2 will move into the 40s (.41 to .45) before the industry peaks, and U will move into the 90s (.91 to .95). The higher the D2 climbs, the lower the avg10 needs to be in relationship to E.
One more thing about this last column of numbers. When there are ideas on the market, and more drop onto them from a reindex, the price per idea will drop, and some of the ideas already on the market will be consumed. So, it's important that you buy up your ideas at each drop, and even when you're not actively working them that you check them periodically and buy up what's there. Often you'll see that U=0 and last is 7.xx%. This means that the above happened. Usually, one managed drop will reverse both of those and put last back into the green.
Industry Play for Profit #2: Logistics
Logistics of working industries for profit (using a single window with multiple tabs, or however it works for you)
1a. Open the Ideas portfolio page where you have the industries you're going to work.
1b. In a new tab, open the Ideas Market page.
1c. In a new tab, open the Recent Idea Drops page.
1d. In new tabs, open the industry page for each of the industries you're going to work, with the "top 2000" view option.
2. Pay attention to the "recent drops" timing, and just after a drop what you'll do is this: Start at the bottom of each industry list, and reindex 1 blog per industry (that is, one blog that will produce ideas), then catch the ideas (buy them) at the next drop. With practice, you'll be able to reindex one blog per industry for around 15 industries per drop.
After those ideas have dropped and you've bought them, then go back to your industry pages and reindex the next blog up, again one each per industry. Catch them when they drop, then repeat.
1a. Open the Ideas portfolio page where you have the industries you're going to work.
1b. In a new tab, open the Ideas Market page.
1c. In a new tab, open the Recent Idea Drops page.
1d. In new tabs, open the industry page for each of the industries you're going to work, with the "top 2000" view option.
2. Pay attention to the "recent drops" timing, and just after a drop what you'll do is this: Start at the bottom of each industry list, and reindex 1 blog per industry (that is, one blog that will produce ideas), then catch the ideas (buy them) at the next drop. With practice, you'll be able to reindex one blog per industry for around 15 industries per drop.
After those ideas have dropped and you've bought them, then go back to your industry pages and reindex the next blog up, again one each per industry. Catch them when they drop, then repeat.
Industry Play for Profit #1: Ideas Production
To play an Industry for profit, you have to know these basic things about what makes a blog drop (produce) ideas in a given industry:
1. The blog has to have at least one incoming link.
2. The blog has to be voted into the industry, and that industry has to be in the top five industries the blog is voted into.
3. The blog has to be reindexed.
4. The reindex has to be done within 10-11 minutes of the last drop (see "Recent Idea Drops" page for this info).
1. The blog has to have at least one incoming link.
2. The blog has to be voted into the industry, and that industry has to be in the top five industries the blog is voted into.
3. The blog has to be reindexed.
4. The reindex has to be done within 10-11 minutes of the last drop (see "Recent Idea Drops" page for this info).
Saturday, October 11, 2008
Monday, October 6, 2008
Searches: The Shares Market Tool
For ages, the maximum number of blogs in which a player could hold shares was 1,000. That limit was recently raised to 4,000. This greatly increases the amount of B$ a player can make playing the Shares Market, and it also increases the interest income a corporation's members can make from the invested balances, if players increase the number of blogs they own shares in.
An ideal formula, it seems to me, is to hold constantly in your portfolio shares in 1 to 2 thousand blogs, and rotate in and out of your portfolio 2 to 3 thousand blogs for profit-taking to increase your total wealth.
The place to start is to find available blogs on the open market. I've built my portfolio up to close to 4 thousand blogs by using the Searches tool, the link to which is found on the right-hand side of each B$ page, in the "Members Area" in the list of links starting with "Profile" "Shares" "Ideas" etc. See it?
When you click on the "Searches" link, you'll go to your searches page. Click on the link near the top that says "Create a new search". You'll actually be creating 3 searches, which I'd title "1 Million" "500 Thousand" and "100 Thousand". Here's how to fill in the "1 Million" Search:
(click on the image to see a larger view of it)
I've indicated the areas to fill in with the pale yellow text on top of the dark blue background.
Just plug in those things, then click on "Save Search" at the bottom of the screen. You'll have to confirm your search next, then go back to the "Searches" page to "generate" it (just click on the link).
Now what you do is create two more searches. The first one should be named "500 Thousand" and should be filled in like the "1 Million" search, except the Min $ Valuation should be 500,000 and the Max $ Valuation should be 999,999. Remember to select the "Valuation (DESC) sort" then save and confirm.
The next is the "100 Thousand" search, and should be filled in like the other two, except the Min $ Valuation should be 100,000 and the Max $ Valuation should be 499,999.
In each case, remember to choose the maximum number of results to be returned (500), which you choose just below the title of your search.
By now, when you return to your "Searches" page, the "1 Million" search list has probably been generated. Open all the pages in tabs (all 10 pages might have blogs available, or it might be fewer pages, depending on how many blogs were on the market at the time your search was generated). On each page, check all and buy.
Now you'll have 1250 shares each of up to 500 blogs in your Main Shares folder. Every 20 minutes, you refresh that folder, then buy the next lot of available shares. I buy them in these lots:
1250
1250
1250
50
50
50
50
10
10
10
10
10
Actually, I always do the first three buys at 1250 shares, but the remaining ones depend on the PE. Most of the blogs will all be in the same PE range at each purchase, but some will have much higher PEs and some lower. In those cases, I adjust the number I'm buying: more when the PE is higher. Buying this way is time-consuming, but it will take the PE of most of the blogs you buy to over 200 PE, which is ideal for either holding or selling.
Once you've begun to cycle blogs, you'll get more and more that start at higher PEs, so you won't have to do as many buying cycles (1250,1250,1250,250 in most cases will give you a good PE).
What I do next, once I've accumulated all the available shares in a blog, is to run them through the Stock Broker, 40 blogs at a time. I reindex the ones that the Stock Broker indicates are due for a PE increase. For those due for a decrease, I sell my shares in all that will drop to below 100,000 valuation (checking the "remove from my portfolio" box), and then reindex them after I sell them so they won't get picked up in my next search at a falsely inflated PE.
Give it a try!
Once you have your portfolio filled out, you can use other methods to fill it out with some proven-quality blogs, but that's done one blog at a time and should be done once you've got this method down and several thousand blogs in your portfolio.
An ideal formula, it seems to me, is to hold constantly in your portfolio shares in 1 to 2 thousand blogs, and rotate in and out of your portfolio 2 to 3 thousand blogs for profit-taking to increase your total wealth.
The place to start is to find available blogs on the open market. I've built my portfolio up to close to 4 thousand blogs by using the Searches tool, the link to which is found on the right-hand side of each B$ page, in the "Members Area" in the list of links starting with "Profile" "Shares" "Ideas" etc. See it?
When you click on the "Searches" link, you'll go to your searches page. Click on the link near the top that says "Create a new search". You'll actually be creating 3 searches, which I'd title "1 Million" "500 Thousand" and "100 Thousand". Here's how to fill in the "1 Million" Search:
(click on the image to see a larger view of it)
I've indicated the areas to fill in with the pale yellow text on top of the dark blue background.
Just plug in those things, then click on "Save Search" at the bottom of the screen. You'll have to confirm your search next, then go back to the "Searches" page to "generate" it (just click on the link).
Now what you do is create two more searches. The first one should be named "500 Thousand" and should be filled in like the "1 Million" search, except the Min $ Valuation should be 500,000 and the Max $ Valuation should be 999,999. Remember to select the "Valuation (DESC) sort" then save and confirm.
The next is the "100 Thousand" search, and should be filled in like the other two, except the Min $ Valuation should be 100,000 and the Max $ Valuation should be 499,999.
In each case, remember to choose the maximum number of results to be returned (500), which you choose just below the title of your search.
By now, when you return to your "Searches" page, the "1 Million" search list has probably been generated. Open all the pages in tabs (all 10 pages might have blogs available, or it might be fewer pages, depending on how many blogs were on the market at the time your search was generated). On each page, check all and buy.
Now you'll have 1250 shares each of up to 500 blogs in your Main Shares folder. Every 20 minutes, you refresh that folder, then buy the next lot of available shares. I buy them in these lots:
1250
1250
1250
50
50
50
50
10
10
10
10
10
Actually, I always do the first three buys at 1250 shares, but the remaining ones depend on the PE. Most of the blogs will all be in the same PE range at each purchase, but some will have much higher PEs and some lower. In those cases, I adjust the number I'm buying: more when the PE is higher. Buying this way is time-consuming, but it will take the PE of most of the blogs you buy to over 200 PE, which is ideal for either holding or selling.
Once you've begun to cycle blogs, you'll get more and more that start at higher PEs, so you won't have to do as many buying cycles (1250,1250,1250,250 in most cases will give you a good PE).
What I do next, once I've accumulated all the available shares in a blog, is to run them through the Stock Broker, 40 blogs at a time. I reindex the ones that the Stock Broker indicates are due for a PE increase. For those due for a decrease, I sell my shares in all that will drop to below 100,000 valuation (checking the "remove from my portfolio" box), and then reindex them after I sell them so they won't get picked up in my next search at a falsely inflated PE.
Give it a try!
Once you have your portfolio filled out, you can use other methods to fill it out with some proven-quality blogs, but that's done one blog at a time and should be done once you've got this method down and several thousand blogs in your portfolio.
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