(As a warning, there’s a lot of info here to digest. Not one of my most readable columns, but probably a one of my more informative ones)

When I sit down at my old Portfolio, I see that I’ve got about 250 million dollars to work with. That’s quite a bit of money. However, since I never play with that portfolio, who cares?

So I boot up my Year to Date Portfolio (which btw, I don’t play with as much either) and find that I don’t have nearly as much to work with. I own very few stocks and I have a lot of cash on hand. Most of the stocks that I do own are usually the big stock movers of the day due to recent entertainment news. Since I pretty much liquidate those stocks at the end of the day, I’m left with a lot of money. So what do I do?

Well, I’m trying to make as much money in as short of time as possible, so I’m looking for cheap stocks with good growth potential. Don’t forget bonds either. 

With bonds, you get a definite number on the Return on Investment. I only buy maybe the top 2 to 3 bonds that have a return on investment. I also buy any bonds that have a +/- 400 point adjust as usually the bond market will “correct” the bond faster than an adjust will so I will usually get my money back faster than anything.

I also look for underpriced stocks. In this market there’s hardly anything such as the market usually has way too much money and will happily pour it into anything that breathes. So I look for movies currently in production and are less than 10-15 bucks. (*cough*TailorofPanama*cough*)

Why 10-15 dollars? Because at 10 dollars, you’re investing 500,000 dollars into a stock; At 15 dollars, 750,000 dollars. This matters because you want to diversify your portfolio as much as possible so that if one stock goes down, you’re not dragging down your entire net worth with it. 

Also remember. If you have a 2 million dollar port, and invest it all to buy 50,000 shares of say Stock X and it goes up 1 point, you may only gain 50,000 dollars. (Also you have to factor in the commission that you paid for that one stock)

However, if you have 50,000 shares of say Stocks A, B, and C (investing all 2 million dollars into), and all of them go up 1/2 point, you’re going to gain 75,000 dollars. And you’ll essentially be paying the same commission as you paid for Stock X. 

It’s good to diversify your portfolio, but never be too attached to the stocks that you buy. You may need to get some quick cash to participate in what I now affectionetly call “pump and dump” stocks as well as the big news stocks of the day.

“Pump and Dump” you wonder? Isn’t that the term they use when traders go to the Internet forums to talk about a real life stock to increase the value of it and then they dump it after they make their money? (Which in real life are unethical by the way.)

Yes. It’s the exact same thing they do in HSX. (Which is ethical as long as it’s real news) What do you think TT is? What do you think all the news sites do to the market of HSX? A stock is mentioned at a news site, is shilled repeatedly at TT, goes up say 4 points one day, then is dumped at night and the next day falls and falls. 

The trick is to get in early, take your profits and never look back. Don’t think about shorting the stock. Think about the next place you’re going to place your money. Shorting is a risky proposition as the stock may still have room to grow. If you’re going to participate in a pump and dump operation, buy, sell and don’t think twice about it.

For newsworthy items, most HSX traders visit some regular websites (Cinescape, Dark Horizons, Ain’t it Cool News, Variety, Hollywood Reporter) Also HSBR captures most of all the new newsworthy items and displays them for you at our brand new HSB&R news minute, found here.

For newsworthy items, most HSX traders visit some regular websites (Cinescape, Dark Horizons, Ain’t it Cool News, Variety, Hollywood Reporter).

Once in a while, a newsworthy item will come by and HSX will shill it. Go ahead and hold that stock for another day, but be careful as the volatility of that stock is much greater than a shilled news item. Why? Because the news is usually old by the time HSX gets to it.

The trick for the newsworthy item is to buy during the run up, sell at any designated point and keep a radar stock on it. Why? Because you’re going to want to rebuy in after it gets to a lower point if it’s a good stock in general to hold. 

Remember, be careful about buying stocks that are over a certain money value (I try not to buy anything over 35 dollars) because of the impact it will have on your port not only investment wise (you may have to sell stocks in order to get enough money to buy) but in your net value if the stock drops like a rock.

Good Trading. Obiah