Monday, March 24, 2014

Do Not Attach Ego to Share Price on Empire Avenue

Share price seems like an important metric in the social media game Empire Avenue (EAv). It features prominently on your profile. It affects the number of shares other players can buy. 

The portfolio page allows you sort by share price, and EAv recommends you "buy low and sell high" in the FAQ, so it must be important, right?


Not exactly


A high share price indicates that many players own your stock, so it does measure your popularity to some extent. However, a player with a lot of social activity outside EAv may maintain a high share price without interacting on the site much at all.

A rapidly falling share price sometimes means that a group of players have lost confidence in your stock, but it may also indicate the exit from the game by a couple of large shareholders. 


Fuggettaboutit


As long as you keep playing Empire Avenue by connecting with new shareholders and maintaining a minimum effort on social media, your share price will go up over time. EAv is an ever-expanding universe where most players exit the game leaving their investments intact. Meanwhile, new players come on board every day looking for new investments.

You share price will fluctuate from day to day. Some players sell off chunks of their portfolios to raise funds. Others formally withdraw from the game, refunding you for the shares you own. When several of these transactions hit you at once, your price will dip.

So what? Now, you're a little less expensive. When your price goes down, your yield goes up, so you are also a little more attractive to some players. 

Just keep playing the game, and your share price will start climbing again.


Bully-proofing


The most important reason I see for detaching ego from share price is to protect yourself from bullies. There are players who manage several accounts and will threaten to block on all of them simultaneously if you do not take a particular action they command. 

This does not happen often. However, when it does, the only way to stand up to a bully is to remember that a down shift in your share price will not matter in the long run. 

Ego detachment should also help you keep perspective when a player dumps your shares for some unknown reason. So your price is a little lower. So what? 


Focus on dividends


I saw a couple players pooh-poohing the loss of a significant shareholder the other day. They feared the sudden sale of 2000 shares would exert downward pressure on their share prices at the next rollover. If they could not sell 2000 shares to other players before then, they might start out "in the red."

Many people run "buy me" missions to fight the sink in these situations. I think it is more productive to focus your energy on building your network scores and improving your dividends. Those investments pay off for at least thirty days. 


But it's fun


We all enjoy tracking our share prices rising over time. Many players celebrate as they cross price thresholds. Friends get involved and run missions.

I do not mean to begrudge you that fun. Just remember that the higher your share price, the fewer shares an individual can afford to buy from you AND the less attractive your yield will be. The best buy is not necessarily the most expensive stock.

Therefore, try not to take it personally if you see a negative morning from time to time. It will not matter in the long run.


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