The Savvy Stockbroker's Guide
Also by suzerz
With the release of the new Stock Market avatar, collectors and money-lovers alike are scrambling to master the caprices of the ever-shifting Stock Market. There have been other guides geared towards making a bit of money off stocks, but this is the first hot-off-the-press article since the release of the new avatar. If you're anything like us, Christmastime has you scrambling for gifts and you may find your wallet uncomfortably light - but fear not! The Market may seem confusing and overwhelming, but this handy article will give you the tips of the trade needed to become a savvy stock broker. First, let’s break down your Stock Portfolio.
Your Stock Portfolio is where all your current stocks are located. There are currently 43 stocks to buy in the market, so you have plenty to choose from. Make sure you check your portfolio daily, as you won’t receive a notification if any of your stocks begin to soar.
The purpose of the Stock Market is to buy low, sell high - this is the mantra of your life, remember it. You can easily make millions with this method, as the Stock Market involves only two things - a bit of money and a ton of patience.
You want to buy a stock with a Current Price of 15. You can buy up to 1000 shares in one day, and this will cost 15,000 NP. If you are in a hurry to make money, you can also buy stocks that are at 16 or 17, but the stocks change prices several times a day. If you don’t see a stock at 15, you may want to revisit the Market a few hours later, and you should be able to find the right stock for you. The Current Price is abbreviated “Curr” in your Portfolio. Why not buy a stock that is lower than 15? The answer is simple: you are not allowed. If you try, you will receive an error message: “Error: Sorry, due to regulations you cannot buy stock that is trading less than 15 NP a share.” Just remember that 15 is the magic number and you should do fine!
You don’t need to pay attention to the “Volume” or “Open” column, but you do want to look at everything else. Each stock company has three things: a logo, a company name, and a ticker, which is like an abbreviation. The only thing you want to keep a steady eye on is the “Change” column. This is how you will keep track of your stocks, whether they are going down or up.
Buy the maximum amount of stocks each day - it maximizes your chances of winning big.
Don’t split up the 1000 shares per day between different stocks (i.e. 500 shares in one stock and the other 500 in another). You have a greater chance at making a bigger profit off of a stock if you invest as much as you can, rather than splitting up your 1000 shares into multiple stocks. However, this doesn’t mean that you should invest in one only one stock: you want diversity in your Portfolio.
If your stocks are down, don’t worry about it. Remember that this is a game of luck, which means all stocks will eventually go up, and the stock that does go up will be random. There’s no way to anticipate which stock will hit sky high, but you might want to drop by to the Stock Tips board. There, you can find a handy thread where fellow stock marketers post the stocks they invest in each day. This can be very helpful, although remember that the Stock Market fluctuates due to luck and chance: no one can tell guarantee you that a stock will go up.
One reason why people avoid the Stock Market is that they feel it costs too much money and involves too much risk. This isn’t necessarily true - you can only invest 1000 shares (15,000 Neopoints) in a stock each day, and that amount can easily be earned by playing some flash games. If you don’t like withdrawing money from your bank, start playing games and setting aside money that you want to invest in stocks. Remember that the gain far outweighs any losses, especially when all stocks do eventually go up.
Remember that you can buy 1000 shares of a stock each day. Say on the next day the current price is still at 15, so you buy 1000 more shares. You want diversity in your stock folder, but you also want to have more than 1000 shares in a stock. Aim for 3,000 – 5,000 shares per stock to start, and you should be set.
For example, say you have 1000 shares in a stock (15,000 NP) and it gets to 300%. This is 60,000 NP, a 45,000 NP profit. But if you had 3000 shares in a stock (45,000 NP) and it got to 300%, that's 180,000 NP. You would have made a profit of 135,000 NP!
Two things not to do: first, do not obsessively check the Stock Market! It’s frustrating to wait, but the Market is about patience. Also tying in with this, do not be in a huge rush to sell. Many savvy stockbrokers choose not to sell until the “Change” column reaches 300%, or until the Current Price is at 60. This is the absolute maximum stocks will go for: 300%. The amount people sell at depends on the person - some people are adamant in that they do not sell until their stock is +300%. Although you may be in a rush to earn money, I would recommend not selling until +150%; the more patient you are, the more the chance that your stock will skyrocket if you give it enough time.
Even after reading this guide, you may feel overwhelmed or concerned - after all, investing can be some pretty serious business! Here are some common questions about the Stock Market, with their answers:
Q. How do people make so much money off the Stock Market?
These stockbrokers probably buy 1000 shares of stocks every day. They probably have lots of money invested, and in a range of different stocks. You can’t make millions in a hurry - take it day by day and be as patient as possible.
Q. What stock is worth investing in?
Any stock with a Current Price of 15; if there are several stocks that are at 15, you can go with any of them. The Stock Market is a waiting game, which can be frustrating at times.
Q. What exactly are ‘shares’?
A small section of the company. You can buy 1000 shares a day.
Q. How do I sell my shares?
By the company icon, there is a little grey arrow. Type how many stocks you want to sell (1000) - you may have to do this multiple times if you have multiple shares in a stock.
Q. Can companies go bankrupt?
Yes - but it is very, very rare, so rare that I wouldn’t worry about it if I were you. The last company to go bankrupt was in Year 6 (2004).
Q. Should I listen to Nigel the Stockbroker?
Pay him no mind at all! His suggestions are usually off, since they are given at random. Silly Nigel!
If you still have questions, remember that there are places to turn - try checking the ‘Help’ section of the Stock Market, or asking someone on the Stock Tips board. There is sure to be a friendly soul around willing to help a new stockbroker!
Try not to worry too much about the Stock Market! The best thing about it is that you invest, sit back, and collect the millions when they come to you (and believe us, they will come to you eventually!). The Stock Market is a game of luck, patience, and ultimately, profit. You can and will earn thousands, even millions from the Stock Market, so have fun with it - savvy?