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I will answer all of these questions and include a guide.
REMEMBER THAT THE STOCK MARKET IS COMPLETELY RANDOM
SO YOU CANNOT PREDICT WHEN YOU WILL MAKE YOUR NP BACK!!!!!!!!!!
Ok, so what is the stock market?
The stock market is a game where you earn np by investing in stocks (see guide later) and selling them at a profit.
Where is it?
The Stock Market is a game in the games room. You can get to it by going to the games room, and clicking Nigel the Chia at the bottom of the page (the Chia with the mobile phone)You can find the stock market on the main page of neo also (below great games, and downloads) it has the neodaq index there too.
How it works:
My theory is to invest in stocks between 15np and 16np a share. This is because of logic. If you buy a share 'ggg' at 240np a share. and it drops to 15np, and you pull your money out (DON'T DO THIS!!!) Then you will lose 225np PER SHARE. This can lead up to quite a sum if you have invested a lot. You can only buy shares once they have reached the price of 15np or more. BUY AT 15!!! There's a bigger chance of it hitting at least 100% profit (30np per share) and something that you bought at 240np.
quote from soccerlifegood101:
Buying at 15 is for more than minimizing risk. If you have 15k neopoints, and you invest in a stock at 150np/share, you get 100 shares. If you invest in a stock at 15np/share, you get 10 times as many shares.
Also, a stock at 15 could very easily go to 60 (400% initial value). A stock at 200 is highly unlikely to go to 800.
What you'll need:
I suggest that you have at least 100k np in your bank ready to invest. This means that you are willing to LEAVE that money ALONE(invested) for an unlimited amount of time (1-3 months) without needing it!!! Make sure you can continually invest!! Ie: you have some ther source of revenue... If you can assure a regular DAILY income of 15k neopoints a day from another source than your stocks then you do not need to start with 100k.
I myself started with 50k in hand without a continual source of income. I never missed a day though, so it is possible to scrounge the cash like i did, but itwas very very tough work as I refused to sell under 65 too :)
How to keep it going:
Your main objective is to get a self sustaining portfolio. This means that you have enough stocks peaking(see later) so that you can sell and have enough np in return to invest for a while more. EXAMPLE: The first stock I invested in was ACFI. I bought 1000 shares at 15np each. I waited a week and it hit 60np a share. 15-60=45 np difference. I sold, getting my 15k back, plus another 45k. So the money I got back was enough for me to keep on investing for 4 days more, without any worries..
So a self sustaining port is when your profit margin is high enough that you can reinvest without seeing your capital dwindle. ie: you can invest without worrying about going bankrupt because you have made a profit. THIS TAKES A WHILE!!!!!!
Forever and ever?
I started about 30 days ago. My port is semi self sustaining. I had 2 very good stocks, which I sold, and they have kept me going. But if another of mine doesn't peak soon, I will have to play games to carry on investing. Make sure that until you have a self sustaining port, that you have some sort of regular income to keep your investments going...trust me it will pay itself off. Now should you invest forever? In my opinion, it all depends on your ultimate goal, and whether you want to stop playing games or no. My main objectives are to get the adam is rich avvie, and enough np in my bank, so that the daily interest is 15k. My suggestion is that once you start, don't stop. Take a break if you want. But don't pull all your stocks out unless they have met your profit mark. Another suggestion is to diversify your portfolio just in case of a VERY rare bankruptcy. That way you wont get hurt. Imagine this... you invest all your 150k into 'lll' which goes bankrupt, then what do you do? you lose all your invested np, and you have to restart your port. My suggestion is to diversify, buy a different stock, at 15np, (if you must, 16) every day. and gradually build up your port. That way, if you ever do run into a stock that does go bust, it will only make a small percentage of your total investment. Another thing, the more you invest, the more profit you make. EXAMPLE 1: You invest 15k in 'mmm', which goes to 45k, you sell and make 30k profit. EXAMPLE 2: You invest 150k in 'mmm', which goes to 450k, you sell and make 300k profit.
WHICH DO YOU PREFER?
It's as simple as this, the more you invest, the more the chances of not only getting a self sustaining port, but you also get more profit. At the moment I have 570k invested. My port is in the red, ie: overall my stocks are not doing too well, but I have enough np to keep me going. I have made 120k profit since I started. YOU CAN ONLY LOSE NP IF YOU SELL AT A LOSS. NEVER DO THIS. If you are at a loss, then wait till it goes up. If you need the np, wait till it hits black( original buying price), or green(profit), before you sell. Meanwhile, play games, or use your shop. With enough time, and investment, you won't need your shop, or games, except for the games avvie...lol I only play games for the avvie, and I only use my shop, when I've got enough freebies to sell. I haven't bought anything from a shop in 30 days, except omelettes and stuff for quests.
For more advanced players:
Have you ever thought of a selling point? Ever wondered how on earth you are going to hold untill you know that you want to sell, but you don't know anyway?
Here is something that might help:
Ok, to start with, if you have no money in the bank, and are struggling to keep your investments up, I reitterate, DO NOT sell at a loss.
If you have little money in the bank, struggling and scrounging to find your next 15k and you can't or don't want to play games etc...then I would suggest that you opt for this option:
This is an option used by many stockers at the beginning when their port is not selfsufficient. It is called the 15/30 method. Buy at 15 sell at 30, this insures an almost constant revenue, and doubles your investment in short amounts of time so you can carry on investing (please refer to, stepchild's petpage )
Next strategy: 15/45 I have never used this strategy, or maybe sold one of my companies of at 45 when I was desperate for cash...it is not the most commonly used, but then it is a good middle step between 30-60, so your choice:)
the 15/60 method, a popular method from what i have heard as a couple of stocks normally hit 60 a month (don't quote me on this)
personally, if you have enough neopoints or you can guarantee an income then go for higher:)
15/65 my old selling method untill 2 weeks back. This method has worked for me and got me to 5.5 months of my stocking. now that i have sufficient capital, or am convinced that i will be able to sell enough to carry on, as in , my port is very self sufficient, i have gone up, but 65 is quite popular among the people i have talked to. Again your choice.
The increment sale thingy please refer to, silvercyanide's petpage )( )
This is something I have tried though havent had much occasion to use, simply you set yourself a primary sell point, lets take 50 for example.
When your stock hits 50, sell 1k or a bit more if you wish, but not all. Then you set an increment value. For instance in this case let's take 10.
So when your stock goes up by another 10, sell another k, and another 10, to 70 sell another k.
Ofcourse, if your stock goes under the 50 barrier, restart your count from 50, otherwise your selling point will simply go way too high. The advantages of this method is thar you can catch a stock going really high and be a part of it:)
Sell point 100 or higher?
You guys are pros and dont need to be reading the faq at all :p
If you have any questions, you can always mail me. I will be updating this guide more and more, as I see fit. I appreciate criticisms! And also if you wish to have a premium invite, don't hesitate to ask!
02/05/06 i hit 100k stocks:)
22/06/06 2 million barrier passed:)
25/09/06: crossed 200k shares
28/09/06 made my 1st over 1mil profit pure. selling 3k vpts@ 72, 4k tpp @ 72, 2k tpp@ 80, 9k acfi @ 69
sold 8999 shares of KSON @74. 531k pure profit.
03/12/2006 crossed 250k shares....refused to sell buzz and bb at 80+ because i'm too greedy;)
Feel free to link my page to anything you want, it is greatly appreciated:)
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