The orginal Neopets Stock Market Guide

Sniggy's Stock Market Tips

The Stock Market. The neopian stock market. How to get the stock market avatar.
Sniggy's Stock Talk
I have been playing the Neopian Stock Market ever since I made my first 100,000 (100k). I've surfed through and answered many questions on the stock chat board and not surprisingly the questions are pretty similar. It becomes rather monotonous repeating one's self and so I've decided to explain it on this great little petpage.



The Stock Market. The neopian stock market. How to get the stock market avatar.
Page Index


What are stocks and how do I find the Neopets stock market?
In the real world, a stock is a vested share in a legitimate company, your investment allows them to grow and improve by creating more innovative and reliable products. Their success/failure is then reflected in a higher/lower price per share, or a "gain/loss," which you can then sell for a profit/loss.

The neopian stock market is set up on the real world model, except that there is no real company, and nothing is done with your neopoints. The rise and fall of neopian stocks are actually based on nothing more than a simple computer program. You cannot create your own company nor can you make the share price rise or fall but with patience you can make a fortune in the neopian stock market.

You can find the stock market by either clicking on the main neopets page (Neodaq Index, right hand column) or in the games room at the bottom of the page, just click on Nigel (the little chia, bottom left) and he will show you the way, or simply use the "Complete Stock Listings" link below.

How can I earn neopoints from the stock market?
In order to earn neopoints you need to buy stocks while they are selling at a low price and sell them for a higher one. For example, if you buy 1000 shares at 15np/share you spent 15k. Now if you hold that stock until it doubles to 30np/share you have doubled your investment. This is great!! Right? Perhaps, but what happens if you hold until it reaches 45np/share now you've tripled your investment to 45np/share which is even better. Simple? Well not quite.

How do I buy stock?
You must begin by going to the Complete Stock Listings. Then you'll see the following table. I will explain what each of the table listings are for but you really only need to pay attention to the current price.

Logo, a picture that represents the product.
Ticker, an abbreviation of the product name (in this case AAVL and ACFI).
Company, quite simply the name of the neopian company.
Volume
, how many shares of that particular stock was purchased that day (47,239).
Open, what the price was at 12 midnight NST (26 neopoints per share).
Curr is short for current, how much one share of stock is worth right now
(31 neopoints per share).
Change
, indicates if a stock gained or lost any points and how much, red means its down, green its up, and black there has been no change (+19.23%).

You must click on the "Ticker" to purchase a stock, this will take to another screen, you can then read a blurb about the company or move on to the purchasing screen by clicking on the company name.

You are now on the buying shares page, here you can see the "Ticker Symbol" has already been filled in for you, you may change it to something else or just fill in the "Number of Shares" you wish to purchase. Click "Buy Shares" and you will be taken to your "Portfolio."

The rules of the game state that you may only purchase a stock that is currently "trading" at 15np/share or more. The rules also state that you may only buy 1000 shares of stock per day. You may purchase as many shares as you like in any particular company but will have to wait for the next neopian day to increase your shares in any company to above 1000.
Buy Stocks

What is a "lot"?
A "lot" is the amount, or number of shares you purchase at one time. You can either purchase one lot of 1000 shares, or split your lots into 500/500, 250/250/250/250 or smaller if you chose. If you can afford it I recommend buying 1000 shares a day everyday, but its important not to invest neopoints that you may want to use in the near future as this should be considered a long-term investment.

How do I sell my stock?
Just go to "Your Portfolio" scroll down to the stock you wish to sell and click on the arrow, you're shares will drop down into a list. Now you can fill in the amount you wish to sell. In order to sell your stock you must pay the chia a 20np commission, and since he expects to be paid up front, you need to have the 20np in hand when you press the sell button. He is a nice little chia however and will sell all of your "lots" at the same time for only 20np.
Your Portfolio

Now as you can see most of the table headings are the same as they were before, but some of their meanings have changed and some more have been added.

Icon, same as "logo" a picture for you to equate with a product.
Ticker, an abbreviation for the product name
except on this one you can click and be taken directly to the "buy" page.
Today, lists the opening price, current price and the change for today.
Holdings
, how many shares of a particular stock you own and how much you paid for it.
Overall, lists the "Market Value" of those stocks at this exact time and the "% Change" since you made your purchase.

Remember, click the arrow to see your "lots." Each lot that you purchased will then be displayed. As you can see I made three purchases of AAVL in 1000 share lots at 15 np/share at a cost of 15k with a current market value of 32k which is 113.33% increase. (If the numbers don't match that's because you are only seeing a portion of my AAVL shares as I actually had 16k shares). Just fill in the number of shares you wish to sell in the "sell" box, but remember it can't be more than the total number of shares you purchased in that lot.

How do I choose which stock to buy or sell?
There are several ways to approach this game, investing for the long-term, day trading, or a combination of the two. Your investment style will dictate which type to choose. For the beginner I recommend the long-term approach, its simple and relatively risk free. When should I sell? When you are happy with the profits or simply can't stand to wait anymore. The waiting is the best and the worst part of the game
(more specifics on selling below).

I want to invest but I don't really have very many neopoints.
That's okay; you can begin with just 200k neopoints even less if you are willing to earn what you need to invest daily. Each day you'll want to invest 15k into the stock market so in one week you'll have invested a whopping 105k neopoints. That's a lot of neopoints for a beginner but don't worry the stock market will eventually be self sufficient so long as you follow these directions.

Buy 1000 shares of stock at 15np/share; sell when it reaches 30np/share.
You now have 30k twice as much as you originally had. Now reinvest those neopoints into the stock market wash, rinse, repeat. In about 4 months you'll find your portfolio is almost self sufficient and you have lots of extra neopoints to spend on other things,
you may even be ready to raise your sell point.
(Compliments to outlaw for this technique.)

I can't afford to invest 15k into the market every day but I have 7.5k. Oh that's okay, just buy 500 shares but follow the same technique as mentioned above. It may take you longer but as long as you remember to diversify you'll be fine.
Return to Index




The long-term Approach
The easiest and by far the safest method of investing, is the long-term approach. Chose a stock that is currently selling at 15-20np/share, the buy zone (I don't usually pay more than 17np/share) preferably something you do not already own or have very little of, we call this diversification. Hold those shares until you think the stock has risen just about as high as you can stand to wait. If you are satisfied with the profits you've made thus far, sell, if not then wait a little longer. Remember, this is a game of patience.

Day Trading
Instead of buying cheap stocks and just sitting around waiting, you prefer the more aggressive, and therefore, riskier approach. You may have been watching the stocks awhile and think you have noticed a few trends among their gains and losses. Some stocks do rise and fall rather quickly. I call these cyclic stocks. In order to be successful at day trading, you must be aware of current trends and be willing to take huge risks. In this case, you buy a stock that is coming down from a "high" in the hope that it will "bounce" even higher.

Example: You buy stock at 50np/share as it comes down from 70np/share, two days later you sell at 85np/share (85-50=35np gain/share). That's a great profit, but what if instead the stock continues its slide all the way back down to 6np/share (the lowest they can go without going bankrupt) now you are out all of those neopoints. Well not exactly, you haven't really lost anything until you've actually sold, solidifying the deal. Still, you may be in for quite a long wait before it decides to climb to those heights again.
Return to Index

Oh No! My stock went bankrupt!
Unfortunately, this is a possibility but you needn't worry as it doesn't happen very often. The key to investing wisely and decreasing your risk is simple diversification. By purchasing 1000 shares of a different stock each day, you will soon own at least some shares, of each stock thereby decreasing your risk.

Don't spend more than you feel comfortable with as all of the stocks will eventually drop down to the buy zone of 15-20np/share. While you may have many stocks that are dropping in value, you will surely have some that are gaining, in preparation of being sold.

Removing Bankrupt Stocks
So how do you get those worthless shares out of your portfolio? Simple, just go to "Your Portfolio" scroll down to the stock you wish to sell, and click on "Dump These Shares."

Return to Index


How do I know when to sell?
This is by far the most common and the most difficult question to answer. It depends largely on your own personal goals and sense of security. I have made up a basic guide to help you decide when to sell, based on the number of neopoints you have banked. Are you poor, secure, or rich and wanting to get richer? Remember this is only a guide to get you started. I often find that while I am quite secure, even rich, most of the time I fit into the category of a poor neopian, but that is because I'm heavily invested, or someone's birthday or holiday has just passed.

The poor neopian
You are short on neopoints to say the least. You have less than 200k in the bank, perhaps far less. For you I would recommend (buying at 15np/share) selling your stock when they reach 30-45+np/share (60+ if you are in the higher range). This gives you a quicker turn over and also allows you to reinvest your neopoints.

The secure neopian
You are feeling pretty good about yourself. You have been playing for a little while and amassed quite a bit (4-600k). You have been looking around for things (battle items, paint brushes, petpets) and found that what you would really like is just out of reach, you can almost touch it, but not quite. Now you have stumbled upon the stock market. For this scenario, my recommendations are slightly different. You can easily afford to buy tomorrows 1000 shares, and so can wait a little longer. Therefore, instead of selling at a mere 30np/share you should wait for 45, preferably 60np/share. Some strongly believe that you make good profits selling at an arbitrary price of 60np/share as they believe all stocks reach this point, some doing so several times a year. This is sound advice,
however, I'm a bit greedy and want even more.
(Besides most stocks that reach 60 eventually hit 66.)

Congratulations, you're rich (but not rich enough)
For you it is easy to be more patient, you can easily afford to buy whatever you want and never even consider how you are going to pay for tomorrow's stocks. You my dear neopian should wait for the stock to reach 75np/share or more. In fact you may now hold out for your first 3 digit sale (mine was FISH 6/27/03 at 103). How do I know if my stock will reach 100+? Well you don't, but I have noticed that there are always 2 stocks above 100np/share. If there aren't then hold, hold, hold, and trust me one of them will be there soon.

Managing your portfolio
Now this is just something I do personally to make my buying a bit easier.
It in no way influences how you play the game, it just makes things
a bit simplier when you go to buy. Especially if your fond of sales
of which we all are. ;)

Instead of selling all the shares of one particular company, sell all but ONE share of the company. For example if you have 2000 shares of DROO instead of selling 2000 shares sell only 1999 shares. When next you look at your portfolio you can quickly see that DROO has dropped back into your buying range without trying to navigate between two windows or watching the ticker marching across the screen above because you still have 1 share sitting in your port for easy reference.
Return to Index



Is there anything I can do to make my stocks rise in value?
Listen, and listen closely. No.
Nothing in neopia affects the stock market. You cannot buy or sell clothing, slushies, potatoes or anything else to make the share price rise. At one point in time, the rise and fall of stocks was reflected in the number of their outstanding shares (mimicking real life stocks more closely). Large guilds were using this to their advantage, however and as this was not fair to anyone outside of the guild, neopets quickly dismantled this relationship.

When do stock prices update?
The stocks update every 30 minutes, on the hour (0:58) and the half hour (0:28). However, not every stock will change. The neopian day begins at the stroke of midnight NST, this is when the "opening" stock price is set.
While this is not important to know, it is a common question.

Okay I've read everything you've said but I'm still not sure
Ah well thats okay with me but perhaps
you'd like to check out the complete selling history of friend of mine. He's a bit more of the nerdy type and keeps complete records of his profits. ;)

Where can I find the history of each stock?
The neodaq.com (http://www.neodaq.com/) is a wonderful site that's full of great people. But more importantly it has the past years history of the neopian stocks on record (look on the left under thumbnails). There is also a spread sheet available for download, which will assist you in keeping track of your stock portfolio. Your will also find tons of other helpful tools, hints and links.
Return to Index

This is all fine and good
but all I really want is the Avatar!!
The Stock Market Avatar is quite easy to obtain. All you must do is invest just over 1 million neopoints and then go to
Your Stock Portfolio.

If you do this by purchasing the stocks selling at only 15np/share every day it will take you 67 days, assuming you have no sales of course.

Are you the rather impatient type? Then purchase the highest priced stock on sale every day and you will likely have it in less than 2 weeks. Don't expect to keep your investment of 1 million neopoints though as the stocks are cyclic and will likely have dropped in price from what you paid for them before you can sell.

Stick with buying cheap stocks and you'll have not only a new avatar but have found a way to make super easy neopoints.
Return to Index




Playing the stock market is easy. Just remember to buy low, sell high, diversify and never, ever sell at a loss. Most importantly have fun. See you on the stock board.


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^.^ Happy Stocking ^.^

Original text written by Sniggy in 2003!
Translations by neopians like you!

Last updated November 17, 2010




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