I'm going to move this discussion here from the Wii thread :)
I do see what your saying about GLS stocks. In fact I've made quite a bit of my networth from them. The problem for me is that the money can be tied up for a long time making it difficult to re-invest in other stocks to keep pace with Top 25/10.
Example: I believe GLS for GTA:IV PS3 will be no more than 5m. I've 7.5m invested, most of it at prices of 7-8m. Following some financials from Take 2, I spent some more to get the price to under 5m as I don't believe this SKU is at 4m yet.
You can see a few comments on the thread where I'm talking to myself though these comments can't be completely without merit as I've had some up bids on them.
Anyhow, the price has rebounded to 5.14m. That's fine as it's close enough to my target price. If I could cash out all my investment at 5.14 I would. Problem is, I've no way of doing that without significantly adjusting the price which would be counter-productive because a) I'd be pushing the price up to where I think it needs shorting again and b) very little profit for me because I'd have sold some of those shares at the same price anyway (so no profit). Not to mention what would happen to my networth/margin if I cashed out a third of my investment in that stock but pushed the price up to 6m!
So effectively that money is dead for now meaning I've only a relatively small percentage of my margin to play in futures to try and make cash. As much as I could invest it GLS, it's much harder to get it out again to re-invest.
Less cash to invest compared to Top 25/10 means they will only get further away. If truth be told, I probably got too dependent on GLS so I'll be playing Futures for a bit to try and even it up a bit.
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I'm going to move this discussion here from the Wii thread :)
I do see what your saying about GLS stocks. In fact I've made quite a bit of my networth from them. The problem for me is that the money can be tied up for a long time making it difficult to re-invest in other stocks to keep pace with Top 25/10.
Example: I believe GLS for GTA:IV PS3 will be no more than 5m. I've 7.5m invested, most of it at prices of 7-8m. Following some financials from Take 2, I spent some more to get the price to under 5m as I don't believe this SKU is at 4m yet.
You can see a few comments on the thread where I'm talking to myself though these comments can't be completely without merit as I've had some up bids on them.
Anyhow, the price has rebounded to 5.14m. That's fine as it's close enough to my target price. If I could cash out all my investment at 5.14 I would. Problem is, I've no way of doing that without significantly adjusting the price which would be counter-productive because a) I'd be pushing the price up to where I think it needs shorting again and b) very little profit for me because I'd have sold some of those shares at the same price anyway (so no profit). Not to mention what would happen to my networth/margin if I cashed out a third of my investment in that stock but pushed the price up to 6m!
So effectively that money is dead for now meaning I've only a relatively small percentage of my margin to play in futures to try and make cash. As much as I could invest it GLS, it's much harder to get it out again to re-invest.
Less cash to invest compared to Top 25/10 means they will only get further away. If truth be told, I probably got too dependent on GLS so I'll be playing Futures for a bit to try and even it up a bit.