Why You Should Invest in the Neopian Stock Market
Recently, I collected over 10,000 NP all at once. No,
I didn't play the Wheel of Excitement, or Tombola, nor did I find it.
If you haven't already guessed, I made it on the Neopian Stock Market,
which is located in the Games Room under the Luck/Chance games and to
the left of the NeoPets Battledome.
The Stock Market must be the easiest game on NeoPets.
You can make lots of NP without really having to work for it. In fact,
the longer you wait, the more money you make.
How the Stock Market Works
When you buy a stock, you are essentially giving some
of your NP to a certain company. In return, you own part of that company.
As the company makes more money (either through stocks, or through its
own success) the value of the stocks you bought goes up. As the stock
goes up, you can choose to sell it, or wait for it to go higher and higher.
When you DO sell it, it costs you 20 NP as a commission for each group
of different stocks you sell.
For example, if you bought an NTV stock when the stock
was worth 6 NP, and the next day it jump up to being worth 56 NP. If you
decide to sell the stock, you make 36 NP. (56 - 20 [commission] = 36)
Now let's say you bought two stocks for NTV, let's say
in one day its value jumps to 56. That makes your portfolio (portfolio
all your stocks together) worth 112 NP. If you decide to sell both stocks
at once, you make 92 NP. (112 - 20 [commission] = 92)
Unfortunately, stocks don't jump that fast.
Three Things to Remember When Playing the Stock Market
•Buy stocks when they're cheap, cheap, cheap. Stocks
rarely go below 6 NP. Never buy anything over 8 NP. All stocks come down
at some point, and the higher priced the stock is when you buy it, the
more likely you are to lose money.
•What goes up, must come down. Let's say you invested
in a stock while it was cheap, and now it's going higher and higher without
any signs of slowing. My advice to you is to wait another day or two,
to see if it makes any progress or starts to go down. Stocks can fall
(and rise) quickly, and if you aren't careful, you could lose money. My
suggestion to you is setting a cutoff point. A cutoff point is the maximum
value you'll let your stocks get to before you sell them. For example,
if your cutoff point is somewhere around 40, and your stock reaches 41,
that's the point where you'd sell your stocks.
•Buy in bulk. Never buy just one stock from a company.
I buy anywhere from 100-1000 stocks from a company. That way, when the
stock goes up, no matter how slight, I make more money when I decide to
sell. For example, let's say I buy 1000 stocks from Böda at 6 NP per stock.
If Böda goes up 1 point, my portfolio, becomes worth 7000, instead of
the original 6000, because each individual stock went up a little. If
you don't want to (or can't) buy that many stocks from a company, it's
okay to buy less. However, I would not recommend buying any less that
10 stocks at one time from a company. Remember, when you sell, the commission
ISN'T for each individual stock, it's for each group of stocks per company.
Well, that’s my advice. I hope I’ve helped you to benefit
from the market.