HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
It basically comes down to this....
The price of the stock is what players think the movie will earn for the weekend x 2.7. So if MOVIE opens on Friday and it earns $10M for the ENTIRE weekend.. the price of the stock will be "adjusted" to $27 when HSX adjusts the stock prices on Sunday for movies that open for the weekend (on Friday).
So you have to ask yourself: "Do I think the movie will earn MORE than $10M for the weekend?" If you DO, then you can buy and hold the stock LONG. If you DON'T think it will earn more than $10M for the weekend, then you can either NOT buy the stock, or you can short it.
Remember that if you buy the stock before the movie opens you can earn whatever the difference between the current price, and what it adjusts to on Sunday... so if MOVIE earns $11M... and you buy it at $27M.. then you stand to earn a little more than $2/share (less commission when you bought it).
If you hold MOVIE until it delists (after 4 weekends) then you pay NO commission when the stock is delisted by HSX... the problem is, you tie up your $$ until then - and with a smaller port, you may not want to do that.
When I was new, and I made $$ on a stock after adjust, I usually sold it off, and moved on. Remember with a smaller port - you have to think "short term." You make your money, and move on. Otherwise, you tie up lots of cash that you can use on other investments...like playing the movies opening the coming week.
Opening movies are one of the fastest ways to build your port... so learn the in's and out's of how they adjust, when to buy them, when to HOLD onto them after adjust, etc.
With a smaller port, I would NOT buy ANY movie that is further out than 30 days... wait till your port is a little bigger before buying any movie that is further out than that. Why? You tie up too much cash you will need for movies opening sooner, buying IPO's (selling them after you make a little), and other short term options.
Also, don't forget to play all the games HSX has to give you FREE Cash.. if you win, you can add $$ to your port, and with a small port, every dollar helps. Look under "Earn H$" at the top of any page, and play each of those games every day...
Good luck!
How do I properly play an opening weekend? Sep 23, 17:59
That's the 62 million dollar question Sep 23, 20:02
"Halt" Sep 23, 20:11
Yes that's exactly what it is - I *think* it happens 6pm pacific time Saturday (check the market calendar) Sep 23, 21:39
It basically comes down to this.... Sep 24, 11:34
Wish I heard all of this advice sooner! Sep 24, 12:08
Perfect, thanks! {nm} Sep 24, 12:21
Would you have been smart to sell off BEFORE the numbers came in with B.O. estimates?? Sep 24, 15:45
The best way to learn it is to watch it closely as you have done this weekend. Sep 24, 17:40
With a tiny port and little experience I would probably wait for box office estimates and... Sep 25, 06:17
