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Welcome to neotacular | Forums
The Neopian Stock MarketList of Neopian Companies | Bargain Stocks | Your Portfolio
So, you've heard that The Stock Market can make you Neopoints, but don't know where to start? No problem! This guide will explain everything you need to know to set you on your way to making millions!
The Stock Market ExplainedIf you are new to the Stock Market, there is no doubt that you will have tons of questions about it. Fear not my fellow Neopian, below I will provide an explanation which will hopefully answer such questions.
The Stock Market is very much like those in real life, with the exception of the Neopian Stock Market being random and not influenced by how well that company is doing in Neopia itself. You can invest in a company and buy shares, and if the company does well (again, this is random), you can sell these shares for a profit.
"So what are shares?" I hear you cry. Shares are portions of a business that are offered to the general public, or in our case, Neopians. When you have bought a share, you have invested money in the business in exchange for this portion, you don't own said business.
Getting StartedNow that we know the basics of The Stock Market, we can begin using it. Firstly, you will need a minimum of 105,000NPs to start building up your portfolio effectively. You may start with a lower amount if you wish, but it is much easier and possibly quicker to begin with this amount. Also remember, that the Neopoints you will invest in the Stock Market may be tied down for long periods of time, so make sure you will not need them in the future before investing.
Building your PortfolioBefore you can start selling shares and earning Neopoints, you will have to develop your Portfolio. This means you will begin investing in various companies until you have enough shares to begin selling then at high amounts. After all, you can't sell shares you don't have.
To build your portfolio, you will be using the 15/30 method. This means that you will be buying 1000 shares every day at 15NPs each and then selling them when their worth reaches 30NPs each, giving you a profit of 100%. This will then allow you to buy another 1000 on top of the 1000 you had already, and so on, until you have slowly but surely built your portfolio.
Buying StocksThere are two rules when buying stocks:
When buying your stocks, you will be faced with a list of companies. Below I will explain what each column means:
Logo: Shows a picture of the category that the business belongs to.
To build your portfolio, you will only be buying stocks with 15 in the Current Price (Curr) column in the company list. This handy page will take you to a list of the cheapest stocks on the market at the moment
Firstly, you will need to buy 1000 stocks every day at 15NPs until you exhaust your 105,000NPs, which should take approximately a week.
If there are no companies with shares at 15NPs each, either go back the next day or check back later. You now have some stocks in your portfolio!
Portfolio ExplainedHere I will explain what the most important parts of your portfolio mean.
Selling StocksYou will only ever want to sell stocks when they have a positive percentage change. Never sell at a negative value. If the only changes that seem to be happening in your portfolio are negative, don't worry, they are sure to change soon enough with a little patience.
As we mentioned earlier, you will be selling your shares when they double in price, meaning a 100% change. You will then use the Neopoints you have gained towards buying more stocks. Rinse and repeat, and in a few months, your portfolio should be self sufficient and you will have extra Neopoints to buy things you may need.
To sell your shares, you will need to go to your portfolio, and click on the little triangle next to the company logo whose shares you wish to sell.
The individual shares that you have bought will then appear underneath. There is no limit to how many shares you can sell.
Sell shares by entering the amount you want to sell in the boxes in the 'Sell' column, scroll down and you will find the 'Sell Shares' button.
Getting SeriousOnce you have amassed a decent amount of Neopoints into your portfolio (around 200-400k) you will be prepared to get a little more serious towards making Neopoints. There are various methods that different Neopians take in getting Neopoints out of the Stock market quicker.
Increasing your Sell Point
After you've built your portfolio, you will probably want to increase your sell point. Instead of selling at 30, you may want to wait until 50, or even 60. Deciding when to sell stocks can be a tricky task and is probably the most common question regarding the Stock Market. If you need the Neopoints fast, then sell as soon as you're comfortable with the profits you'll receive. If you don't, then feel free to wait until your stocks rise higher and sell when you don't want to risk them falling anymore.
This is a much more risker approach to trading, and only recommended to those with much experience. It involves buying stocks when they are already quite high, such as 30NPs each, and selling them the same day when they are even higher. Some stocks may show patterns, such as rising quickly and falling just as fast. You need to be fully aware of such trends if you are to be a successful Day Trader. You will be buying shares that are falling from a high value in the hope that it will rebound to be much higher. For example:
Say you bought stocks at 40NP per share as they have fallen from 60NP per share and sometime later you sell at 80NP per share, giving you a profit of 100%. This may seem very appealing, but what if the shares decided to continue falling? It may take a very long time before they reach the heights they once did.