Empire Avenue – Why my share price drops
Many newcomers who race up the leaderboard get shocked a week or so later when they begin to plummet.
Others have posted on this but I thought tossing out another post explaining as far as I understand it, the market mechanics and why this happens, might help alleviate concern.
Because share price is mixture of online activity and people’s interest (i.e., buying shares) in you if either tapers off your share price will drop.
Newcomers who are active online get onto the recent arrival leaderboards. AND THEN EVERYONE BUYS THEM! They shoot up the leaderboards. AND EVERYONE SELLS THEM! And because their share price is so high, people stop buying too. (And I suspect the higher your share price, the bigger the drop, when you do drop, though this is an untested theory).
Being active online, I think, is the most important factor but being bought or sold has repercussions too. When this happens patience is called for — don’t start spamming the Internet, just keep being as active as you normally are because if you do start posting more than normal you’ll end up suffering another share price drop when you can’t sustain the activity.
I’ve never been a fast moving stock but I’ve noticed certain plateau’s that I’ve reached and stayed at for a bit before my share price starts moving upwards again — mid-teens, mid-twenties, thirty. Like the real stock market I think there are some psychological factors at play, some stocks hover right below certain thresholds for a while before they are pushed over them.
Don’t be discouraged. Go muck about in a community and have some fun. You will start moving upwards again. And buy (e)Writer; I hear he’s a nice guy who often reciprocates purchases.