Getting past the Pendapalooza hangover
Posted by mandyf on March 26, 2012
You made it through Pendapalooza and life is almost returning to normal. You’ve eaten a meal that didn’t consist of chips and caffeine. You’ve slept at least 3 hours in a row. The indentation in the chair you sat in has actually begun to puff back out again now that you have unglued yourself from it. You’re actually functioning like a real human again instead of a crazed day trader hunting down the next big thing and scrambling to make reciprocal buys. The dust has settled. Now what?
What comes next will be different for a lot of people. Some people exit Pendapalooza riding a high only to feel like they got kicked in the groin several dozen times by a toddler with those white shoes that have really hard toes. As great as Pendapalooza is, not everyone has the same strategy the week or two following it ending. It can be a pretty big shock to log in each day and see that even though your divs are climbing and networking scores are steady or improving, you’re fighting to stay in the green. You may find yourself wondering how long you stick with buys you made that maybe aren’t panning out how you expected.
I can’t answer all those questions. I’m even wondering how the post-Pendapalooza scenarios will play out for me. Just to help you be aware of things that might happen – here are a few tidbits I’ve picked up that keep me from making the Jackie Chan meme face hours on end after I log in.
1. Sometimes, people that just purchased your shares will sell off your shares just as fast. Not everyone will do this, but there is a certain number of people that certainly will. For instance, I watched someone buy 600 shares of me Sunday morning around 9am. At 9:30 they sold 100. At 10:30 they sold another 100. They continued to do this until they held only 25 shares? Why? I bought 350 0f their shares! Who knows? It doesn’t even actually matter. You just have to shrug and accept it can happen. Maybe his strategy was to buy big, get the big reciprocal buys, sell off and repeat over and over. There are people that do it. It is a strategy.
2. There will be some people that maybe overextended them self as they got wrapped up in the frenzy of buying without realizing that post-Pendapalooza, buys do tend to go back to their normal rate and commissions aren’t as plentiful as they were for that one glorious day. As a result, some folks will sell off shares they just bought to help get past a little temporary eaves crunch. Nothing you can do about it, just accept it and move on.It happens. It even happened to me my first Pendapalooza.
3. “I bought tons of shares in new people – now I’m not sure it was the right thing.” Buyers remorse is a fact of life. Not everyone in the game can afford to tie up a few million, or even a few hundred thousand, in non-performing shares. The question is – how soon is too soon to sell off those shares?
My general rule of thumb for post-Pendapalooza sales:
Sometime around 7-10 days after Pendapalooza has finished, I look over all the new players I purchased shares in. The active players I stick with. If someone has no activity, or maybe a dozen or so actions on EAv for the past week, I put them on a three day watch. If over the next three days they do not show any/more activity on EAv or strong activity on their networks, I may sell off half of my holding in them and then reevaluate in 4-5 days whether to hold or sell off to where we have just matched shares.
If a player is showing activity, but they haven’t engaged with me in some way for ten days, I may sell off some shares depending on what their Divs look like and whether or not they offer opportunities for me to engage with them such as missions. Do they offer any or do they complete mine? There are a lot of ways to engage. There is no hard and fast formula, a lot of it is going with gut instinct. Sometimes it is right and at others wrong. Either way though, I learned to not make snap decisions about post Pendapalooza sell-offs.
4. “It’s not as exciting as that glorious weekend anymore…” True enough. Pendapalooza is one heck of an exciting time. At first, there is a little let down, but then you start to see how a new world opened up. You have new contacts, access to new missions, new content to interact with and more people to add to your networks. Believe me, you’ll stay busy. By the time you get everything sorted out and feel like you’re caught up and where you want to be – it will be time to prepare for another Pendapalooza.
Everyone comes away from Pendapalooza with a slightly different experience. It helps to realize something I wish I knew coming out of my first – the game changes for you in some ways. No matter how good a job you do playing the game and making buybacks – some people will sell you off. Don’t take it personally. Sell them off as well if it makes you feel better and makes strategic sense. Give people time to buy back or reach out to you. Some players may have as many as 100 new investors that flooded in over that one day – they can’t meaningfully connect with everyone immediately. Have some patience.
The biggest thing to take from it all is the fun you had. If you didn’t have some fun, you didn’t do it right. At the end of the day, it’s a game.