And Another One Bites the Dust... by kev_armentrout |  |
STOCK MARKET - It seems almost cliché to use that phrase, but it almost
seems appropriate to describe the way the stocks have have been dropping like
flies. Is this going to be a normal trend in Neopia? Will there be more stocks
to join the ranks of BODA, FUZZ, and NEGG? Much of the Neopain General Public
is enveloped in the stock market as a way to make a living for themselves and
their pets, but are the risks beginning to outweigh the benefits?
As Neopets approaches its 4 year birthday, it seems very appropriate to ask
these questions to get a general understanding of the economic standpoint and
to consider the risks and benefits of the upcoming years.
In periods of panic, the spending in the market begins to go down, people
begin to sell their stocks, or do crazy things like quit all together. Seeing
as spending is going up in Neopia rather than down, the market is sure to stabilize
at one point, people continue to hold their stocks, and make money; if not today
then when opportunity arises. There is no trend in people selling their whole
entire portfolio to make meager profits so this appears to be more of a short-term
event rather then a trend.
Millions in NP flow into the market from the stock market alone. I hear stories
all the time of an average Joe obtain a fortune that a few months ago not even
they could imagine was possible a few months back. With these abundant stories
of success, there are much more stories of people losing it all, such as the
case with the latest bankruptcy of NEGG. The message boards are filled with
lines like, "I had 10k shares of NEGG when it went bankrupt :(" and "I almost
cried when I saw my portfolio value 10 minutes ago". When an even like a bankruptcy
happens, it makes people think, "Why Bother, I'm just going to lose money anyway,"
and that's not right. The Market should be looked at as a way to make money,
not lose it!
Neopets would be awfully boring if there weren't any risks involved in it.
Where people walking around with 50 million NP would be common, and there would
be little challenge in anything. Yet, questions like "Is it worth it to invest
in the stock market?" still pop-up, and some are reluctant to say yes, but you
cant know for sure until you've played it. If you know how to play your cards
right, then of course the benefits will always outweigh the risks! Think of
any rich person, and ask yourself did they make their money by sitting on the
couch dreaming of being rich? No! It takes action and risk to become rich, unless
your born into it, and I don't think that's going to happen anytime soon in
Neopets!
A lot of times when people play the market, they have very common questions
like "When is the best time to buy?" or "When do you sell?" Well to answer the
first question, "When should you buy?" You should buy any stock from a range
of 15-20 (some people go to 25, but I prefer to use 20) with a good history.
If you are serious in investing you should join a good investment guild, with
one that lists recommendations, and one that has helpful members.
The best time to sell is when you feel happy with the profits. In recent events
many serious investors are beginning to load their selling standards. As a rule
of thumb you should never sell below the price you bought it at, ever! If you
cant control your urges to sell, you should set a percentage goal to go sell
at, and don't sell below it. For example, if you buy at 15 and have a 200% goal
to reach you shouldn't sell below 45. The only time when you could be forced
to lose money on the market would be if a company goes bankrupt, patience really
is a virtue.
If you are serious about investing, you should always buy your absolute max
you can every day. Play games, make money and try to put in the full 1000 shares
every day. The rewards are notorious for paying off much more then you pay for
them, you just have to have patience. If you are persistent, and motivated you
can make a killing on the stock market, just like you can by restocking, and
playing all of the games every day. Just like any game, if you play it right,
you will make money, and will get better. Everyone makes mistakes in the beginning,
you can either learn from them, or you can just give up, and giving up is not
a good choice.
The most important piece of advice I can offer the major investors and the
lesser ones as-well is simply this. Keep on investing, because with big risks
comes big rewards! Don't sell out of the bankrupt stocks, who knows they might
just come out of bankruptcy. The stocks are a game of high stakes, and you've
got to play to win. Quit the panic, think level headed, and get back to the
real reason why you are playing Neopets, for a challenge! Now get back out there
and invest more! |
