The Savvy Investor
STOCK MARKET - Good-by filet minion, hello worm nugget, all because you stocked
up on a stock and watch two weeks of saving up go down the drain. Was it a doomed
stock, destined to fall, was it just an u NPredictable fall, yes that's what
everyone who made a wrong move wants to think. Or was it a bad move from the
second you clicked buy?
I know you have heard those people who say, "I've made 250K of the stock market
and you can too." These people are telling the truth in that they have made
a quarter of a million NP, but they are just scratching the surface, there are
some other faces of the stock market.
If you can remember way back when the Neopets had a 'Bargains' sections. They
also had a maybe misleading section. I was new to the market. I had just bought
some shares of certain stocks, 2 shares of HUW at 4 and one shares of COFL at
6. Yes I wasn't going to make money but I later called them my guinea pig shares.
Also, I didn't want to pour too much money into something I didn't have substantial
and adequate knowledge about. If you are new I suggest you go that same route.
But back to the 'Help' section. It gave several tips on buying stocks. It said:
Some people buy stocks that are low considering they have only one way to go,
and therefore they can maximise their profits. So far, so good, I agree with
this part, except, some stocks never make huge gains that really add up. There
are instances however that are forever burned into my mind as a stock advisor.
I remember when KSON was at 16 and I was telling everyone to not go for it.
I remember although I would like to forget putting KSON under the 'Never Go
Far' section in my advice. Then over the next week, KSON was up to 50. An unpredictable
gain, that is all I can say. There are occasions like this when a sleeper stock
flies high, but it is NEVER predictable. I am done with this point.
Next it said: On the other hand some people like to buy stocks that have always
been high and always stayed strong. Here's where my support stops. First of
all there are NO stocks that ALWAYS stay high. Even BOOM that was at 256 some
time ago is now at 20. Next no stocks always are strong.
There are few blunders I have made in playing the market but I clearly remember
one. I had just started to find my way in the market and learned the general
principals. I read that last bullet and saw that UNIB was at 190 and though,
"Well they saw high stocks stay strong, so what the hay." I bought 100 shares
of UNIB for 19,000 NP. Over the next 3 weeks, UNIB slid down an invisible mudslide
to sit at 45 when I put a towel over the wound. A net loss of 14,500 NP. If I
only would of looked at a certain line in the first bullet I might have been
able to salvage a porterhouse steak. "Only one way to go." This shows that a
stock too high is plain old too risky of an investment. However, you are bound
to make a mistake in the stock market, some people make more than others. Although,
I did one thing you must do when you make a mistake. Learn from them. Yes I
learned from my mistake and have had a very profitable time with the market
Another thing the savvy buyer does is never, never, NEVER listen to Nigel.
I am certain at one time or another you click to go somewhere and a window pops
up with that gelled-back hair suit-wearing chia. He is supposed to be you stock
broker. However, the only thing he is good for is selling your stocks. I believe
(and not just me) that his advice is completely random, and there is no rhyme
or reason for whatever stock he picks.
In order for me, and the people I give advice to, to buy a stock we all (as
a savvy investor) must have something to back why a certain stock(s) should
be bought. You can't build a house without a foundation. The foundation supports
the house. The foundation as I refer to it is the information and the statistics
to back and therefore suggest a stock.
Also, the savvy investor never trusts and even bothers to read the 'Buy TCAG!
I know it is going to go up!' on the message boards. I can guarantee you, that
if you go to the stock advice message boards you will see one of these in one
shape or another. Then 9 times out of 10 if you open it, it will just say 'Buy
it, I know it will go up.' They give no advice, no support, and no proof to
support their theory. Now with the invention of neodaq.com all done by a great
Neopian, you can see the history of any given stock. The history is a crucial
fact in proving why you should get a certain stock. Why is this so critical?
Because it shows how high the stock has been and how high the stock can get.
This is the foundation, the supports. This shows you how much money you can
make off this stock. Let's say there are two stocks you are looking at. Stock
A has a high of 21, while stock B has a high of 59. This shows that stock B
greatly outnumbers stock A in the chances it will shoot up and therefore give
you a greater profit.
As you have read in this article the savvy investor does and does not do many
things. In order to be one you must too! And in the end, it is the savvy buyer
sitting down to filet minion with wine as you munch on you worm nuggets and