Stocks: A Board Game, Not a Game of Chance
STOCKS – You’ve probably bought some. Perhaps you bought VPTS shares to show your support for Sloth. Maybe you bought EEEEE because you liked how it had 5 E’s, and E is the fifth letter of the alphabet. Maybe you just bought a few shares of LUPE because you had a Lupe and wanted to make some money to buy it a paintbrush. The point is, stocks are nifty, and this guide is meant to help you become a professional at trading stocks. A professional, meaning you make money from it, rather than an amateur, who doesn’t earn money.
The Three Ps and One V of Stocks
To do well with stocks, there are three Ps (and one V) you need to follow: pocket money, pricing, patience, and variety. Feel free to skip down to the bottom of the section for the summary. :P
Pocket money: The first thing to note about stocks is the old saying “You have to spend money to make money.” Stocks cost money to buy. Currently, that means a minimum of 15 neopoints per share. If you buy the daily maximum of 1,000 shares, that’s 15,000 neopoints. Therefore, it is important to have neopoints available for stocks. This shouldn’t be a problem if you already have a supply in the bank, but if you don’t, you can also play games.
Pricing: As I said before, the minimum cost you can pay for your stocks is 15 neopoints per share. Therefore, I don’t recommend buying really expensive stocks (such as ones in the 500 NP per share range) unless you have a LOT of neopoints to spend, since most neopians aren’t able to get 500,000 neopoints a day (if you can, I’m jealous. :P). So try to buy stocks in the 15-17 neopoints per share range, because they’re a lot more affordable and they don’t need to go up as much to get to your goal. Which brings me to my next point....
Patience: Stocks (usually) don’t skyrocket overnight. Therefore, patience is very important. Some of your stocks may go down to 6 neopoints and not go up for a long time, but don’t sell! Stocks almost always go up eventually, and when they do, you’ll be glad you waited. But on the other hand, if your stocks go up, you don’t want to sell too soon. If your stocks go from 15 neopoints per share to 16 neopoints per share, you won’t make many neopoints, especially since Nigel charges a 20 neopoint processing fee. That means that you won’t even make a thousand neopoints. Personally, I try to aim for a 100% increase in the stock price, because that means that my neopoints have doubled. This is easier to reach with cheaper stocks because they only need to go up 15ish points to double, while more expensive stocks have to go up more points.
Variety: You should never only buy one type of stock. Why? Because then, you only have once chance to make money. Having a large variety of stocks is very important, because then, you have more chances to make money. There are currently 43 different types of stocks available to buy, and at any time, you want to have as many of them as possible. With just one type of stock, you could wait months for it to reach your goal, but with a large variety, you could be selling stocks every day. Therefore, when there are multiple types of stocks selling for 15 neopoints per share, buy whichever type you don’t have, or have the least of.
TO SUMMARIZE: Buy low, sell high.
Pros and Cons of Stocks
Pros: Stocks can make a lot of money with relatively little work. It’s pretty difficult to lose money on stocks, provided you follow the basic guidelines of buy low, sell high. The only work you really need to do is check your stocks each day and buy new ones, which probably shouldn’t take more than ten minutes.
Cons: In rare cases, stocks CAN go bankrupt, meaning you lose all the neopoints you’ve invested in that particular stock. (Please note though that this is extremely rare, and the lowest stocks usually go is 6 points.) A much more important con is there is NO AVATAR! *cry* And also no trophy. So if you collect avatars or trophies, too bad.
Q: How do you know which stocks to invest in? – stlfan1992
A: You should invest in whatever stocks you don't already own that are cheap. Or, if you support Sloth, invest in VPTS. You can even invest in VPTS if you don’t support Sloth, because it might make him spare you after he takes over the world. But probably not. Additionally, investing in other stocks also won’t gain you special privileges. So if you buy a bunch of COFL stock, don’t expect to get fish neggs as a reward. :P (note to TNT: dividends would be nifty, though... *shifty eyes*) Or you could always use a crystal ball. Personally, I recommend an E-Z See Crystal Ball, but you can use Jhudora’s Crystal Ball if you want EVIL stocks. *cackle*
Q: I know nothing of stock. So what’s stock? – franciss679
A: The stock market is a game in which Neopians buy and sell stocks in order to make neopoints. It used to be found in the Chance section of the Games Room, but can now be found under Board Games. A link can also be found on the Neopets homepage.
Q: But how is it possible to have a guide to something... that’s... random. It is random, is it not? - zephrhills68
A: Yes, stocks are EXTREMELY random. However, stocks still follow rules, which is that unless they go bankrupt, they don’t go below 6 neopoints per share. This guide is meant to help people increase the rate at which their stocks reach their goal so they can make more neopoints using stocks.
Q: Do meepits control the market? – wondersstar99
A: Quite possibly. However, the existence of stocks including VPTS, BOTT, and other so called “villainous” companies does not make sense... unless Balthazar, Sloth, and other villains are working with the meepits. And judging by the fact that villains usually don’t work together, I doubt that. So therefore, while it is possible that meepits control the market, it is much more likely that they merely control one of the companies. (note: YAY MEEPITS!) And on a similar note, you CAN NOT buy jelly on the stock market because Jelly World does not exist.
Q: Why is Hubert's Hot Dogs (HUW) represented by a tube of lipstick? - ffamran
A: The reason that HUW is represented by lipstick is because it, like Unis Beauty Salon (UNIB), makes pets look awesome. Bread symbols are for stocks that are foods that aren't as nifty, such as fish pops, potatoes, and health food. But hot dogs aren't just food - they’re a fashion accessory! (Note: do not try to customize your pet with a hot dog. :P)
A final note:
After you’ve bought and sold some stocks, you’ll probably notice that your Total % Change will be down. Don’t worry about this – it’s totally normal. After all, if you sell all your stocks that go up, you’ll only be left with the stocks that are down.
So remember: Buy low, sell high, and YAY MEEPITS!