As the newest (and greenest) columnist here at HSBR, I decided to start off with an article especially for all of you new investors. In order to highlight some of the most common newbie mistakes, let’s take a look at the rollercoaster known as my port:

August ‘99 – Joined HSX and got that beautiful $2mil (and 10 shares of X-MEN – thanks a lot Max Keiser!) Proceeded to buy 1000 shares of any movie that sounded interesting.

Bing!Bing!Bing! First newbie mistake – buying shares purely on personal taste. Sometimes this works, but often these personal favorites are far from wise buys. You’ll end up paying too much for an inflated stock or buying into a movie that’ll never make it to your local cineplex.

It’s also common for new investors to diversify too much. When you first join up there’s a ton of tempting offerings out there, so the natural inclination is to buy many different stocks in small quantities. DO NOT DO THIS. While it’s important to diversify a bit, if you don’t bite the bullet and fiercely invest from time to time you’ll never start to grow. Remember – it’s not real money – so have fun with it and don’t be afraid to take a few (wise) risks as a new investor.

September ‘99 – Sold off most of port, invested in a few upcoming releases. Doubled port in week thanks to a smart buy and sell of a sleeper release.

Proceeded to lose most of those earnings by holding an inflated stock through adjust.

Here’s where the rollercoaster learning process begins. Not every investment will be a wise one, but if you’re patient and learn from the mistakes you’ll soon start to grow.

As a new investor in the movie stock market, one of the best things you can do for yourself is learn how the adjust and delist system works. Read the HSBR seminar, watch the market and grab a share of every new release about two weeks before it hits the theatres. Watch the ups and downs and pay close attention to the first weekend adjust.

October ‘99 – Held a favorite stock long through a painful adjust and watched the port scour the depths of existence.

Started checking the delist values on the Box Office Charts and bought and sold to rebuild the cash reserves.

Probably the most painful lesson a newbie can learn is to know when to walk away from a sentimental purchase. Take the advice of the columnists and look at the Staff Predictions on the day of release – it may be the reality check that saves you from a big hit. Remember that most of the columnists out there have seen their time on the leader board, and they know what they’re doing.

November ‘99 – Started checking the Bond Charts and investing in bonds with a high ROI.

Started researching screen numbers, box office history and other key predictors.

After a few months you begin to learn the difference between a good buy and a great buy. POKMN, for instance, adjusted up over 25% on opening weekend, making it a much better investment a stock adjusting down only 10%. The key is picking out those stocks and bonds with the most room to move. Often the biggest movers are the lower priced stocks in wide release, so keep your eye on them.

And always remember – research is the best friend of the serious HSX investor. As you learn to navigate HSX, learn to use the tools at your disposal. New investors do not need to know how to calculate a bond adjustment, for instance, but they should know where to go for that information. Keep tabs on the news, visit the fansites and think before you buy.

Now get out there and start tackling the leaderboard!

Jen Frisbee
Newbie Extraordinaire