Day to Day STOCK TRADING TIPS
Note: These tips do not apply to Lester's assassination missions. These are intended for anyone who is looking to make money in the market after all of those opportunities are dried up.
The notes below have come from my extensive research on the Liberty City National Exchange Index. For four real life days I sat outside the Ponsonby's in Rockford Hills in my gorgeous black Grotti Carbonizzare listening to FlyLo FM and decided to day trade, disgusted with my property ROI and determined to figure out the index what all the numbers mean etc. to try and make some real money. Here's what I discovered:
BEFORE WE GET STARTED
The Line Charts & "Last" metrics DO NOT WORK - On first impressions they indicate lucrative trading opportunities by allowing a $10 trade today and a massive spike tomorrow resulting in massive gains, but the lines and last metrics are BS.
Tests & Evidence: The "Last" metric on the screenshot below indicates that Lifeinvader's (LFI) last stock price was $13.35 (if you're not familiar with stocks, the price that the stock was valued at the end/close of trading on the previous trading day). This number coincides with the line chart - see Monday's closing number on the chart it's approx at $13, today in game is Tuesday, but this is not true, how do i know? because I've been sitting in my car for the past several (game days) and the stock has never risen above $7.17..... Yesterday on Monday it was around $6.56. Where the hell did $13.35 come from?? The day before the last closing number was $11.35 and the day before that $12.56. The line charts and "Last" metric are completely for show and are inaccurate. These two things will confuse a lot of people and cause you to lose a lot of money if you're not careful.
The only thing you can go off is the current price (or "Value") metric, which is not much, and you have to manually follow the stock. If you don't believe this, try it yourself and let me know.
Since we now know what metrics are actually accurate and what we can actually use we can now start trading.
DAY TRADING TIPS & STRATEGY
My tips for trading may seem obvious but are highly profitable and effective if used correctly, try them yourself. My strategy:
Trade LCN's version of Penny Stocks - Trade LCN's version of penny stocks (stocks with an extremely cheap price, supposed to be less than $5 but whatever) the only two on my game are Lifeinvader (LFI) and Bilkinton (BIL). I've made millions off these stocks as you can see from my screenshot (Note: I only started off with the $28 mil from the last heist and failed to save a few of Lester's missions until after... I'm still whining about that =().
Anyways, you ask, why should I trade penny stocks? In general, your profit comes from how much a given stock goes up from the price you purchased it for. All of the stocks that are on the LCN index fluctuate by only a few cents at a time. You may say so what? I'm trading the more expensive stock. But if all the stocks fluctuate at about the same why would you pay more for the same rate of return per share when you could buy a cheaper stock, get the same rate of return, and leverage your money insanely more? Make your money work for you! To illustrate let's use the scenario below:
Your starting cash is: $20,000,000
You have a choice between two stocks/scenarios:
A.) AirEMU (EMU) Current Price $200.00 per share
B.) Lifeinvader (LFI) Current Price $5.00 per share
Scenario A - With $20 million dollars you can buy 100,000 shares of EMU. If the price goes up by $0.10 you make a profit of $10,000. Woo congrats!
Scenario B - With $20 million dollars you can buy a whopping 4,000,000 shares of LFI. If the price goes up by $0.10 your profit is $400,000!! Someone pick me up I fainted. And that's only on a $0.10 hike. $400,000 per $0.10!!
Now you may say, if the stock goes down I lose that much, and you would be correct; the market is a gamble but with this beautifl single player you can eliminate this risk by Quick Saving and reloading if things go wrong. However, if things go right! Sell, save the game, and REPEAT!!
I notice that the penny stocks stocks I follow (LFI and BIL) go up about $0.06 to $0.20 after that they drop a bit and I lose money. So anywhere within that range sell your shares and claim your profit.
Another tip is the stock prices are relatively stable (opposite of what the fake charts falsley indicate). For example, in following LFI for a day the stock dropped as low as $4.96 and got as high as $6.07. That's a $1.11 margin. So as you follow a stock around for a day or so you will get a feel for what is high and what is low try to buy as low as you can to maximize your profit potential.
I hope this helps some people make cash. It does take a while to amass a few million, but as you get more money the amount of your "profits per cent" increase and hopefully this helps some people buy some of those properties they've always wanted.
Edited by LeAristocrat, 27 September 2013 - 06:34 PM.