A Miniguide to Investing

     The Stock Market

     Find a company with a current stock price of at least 15 Neopoints, purchase 1,000 shares each day, and sell them in the future when they are worth more. It is commonly known to “buy low, sell high,” but the logic of this is simply to minimise losses in case of bankruptcy—although the companies in Neopia are seemingly too stable for this to happen. It can be hard to predict what stock will go up in value and when it will, so it is good to keep your portfolio diverse.

     The Stock Market has limited daily sales; therefore, it is better to sell your shares sooner rather than later and reinvest the profits into ventures without daily limits, like items—which causes a bigger compounding effect.

     Compounding

     Compounding is the way to get returns from your original investment’s returns. Let us say you purchase 1,000 shares in a company from the Stock Market, and after a few months your investment has grown from 15,000 Neopoints to 30,000 Neopoints, a 100% increase. This profit you can invest into another company at the Stock Market, and just as an example, let us say the same thing happens again—your now 2,000 shares in two companies miraculously grow from 30,000 Neopoints to 60,000 Neopoints, another 100% increase. Since you reinvested your returns, your initial 15,000 Neopoints investment has grown by 300%, instead of only 200%, and that is the power of the compounding effect.

     Investing in Items

     Items are the best investments because there is no limit to how much you can spend, and if you make the right choices, you can get high returns on your whole fortune. To decide what to invest in, you need to do a fundamental analysis and use logical reasoning. Jellyneo is an officially recommended site, and their Item Database contains useful information about items as well as market statistics. A rule of thumb is to figure out what is in demand, and what will be in demand in the future.

     • Items only obtainable from an event: their prices are lowest during the event when the market is saturated but can potentially rise after the event is over, when supply is depleted.

     • Collectibles such as books, stamps, gourmet foods, charms and cards are always in high demand.

     • Battledome weapons featured in Jellyneo’s Battlepedia Top 100 Weapons list are also highly desirable.

     There are other factors to consider, such as events returning and therefore certain items, which affects when it is most opportune to sell; some items from recurring events may be better to sell half a year later, but some may never return. There are risks, as items could become irrelevant and lose value over time instead, but that is why it is good to buy when the market is saturated and the prices are deflated, so you minimise potential losses. If you stockpile items that have high growth potential, you can possibly control the market in the future. Also, if a certain item becomes a trendy investment, it will only increase the demand and further heighten the value. That is why you must think ahead.

     Event item investments, and item investments in general, are profitable but often long-term—so you must wait to see results. The good thing: all you must do is wait.

     Coconut Shy

     The odds of winning in Coconut Shy may seem low, but if you invest Neopoints into the game daily, you are sure to get high returns. This type of indirect investing is different because you must keep playing until you get a reward, but time and overcoming the odds are part of the investment.

     Here is an analogy: imagine a beautiful and valuable flower that unfortunately rarely grows, and Leeroy is a salesperson who sells you 20 seeds of this flower each day; when a flower finally blooms, and you sell it, it covers the cost of all the seeds you bought, and many others in the future.

     The Wishing Well

     The Wishing Well grants you seven wishes in the morning and seven in the evening. The key is to only toss in the minimum required amount, 21 Neopoints, and wish for a valuable rarity 89 item, as that is the rarity limit. You can see what others have received from the well recently, often stamps and goodie bags, so use that as inspiration. Similarly to Coconut Shy, you steadily invest small amounts and eventually get rewarded.

     Food Club

     Technically a game of chance, the Food Club is surprisingly consistent and can be a big moneymaker depending on how old your account is. If you speak to the bookie, he will inform you of how much you can place per bet, which is 50 Neopoints plus two Neopoints for every day since your account was created. You can place 10 bets per day. As for the bets, unless you wish to learn the preferences and allergies of each pirate as well as betting techniques, you should look to the community; certain people put out daily recommended bets that include percentages on whether you will lose or profit. No need to wait as with other investments; here you can potentially double or more your bets every day.

     Bank Interest

     The safe endgame of growing your money, especially when you combine it with other investment methods that rely on time and market changes and compound the returns. If you have a large fortune, you will start to see big numbers in your daily interest. You get the maximum 12.5% yearly interest with at least 10 million Neopoints in your account. With 300 million Neopoints in your account, your daily interest is 102,740 Neopoints, and the next day your interest is calculated from the new compounded amount—the caveat is that you must manually collect your interest every day.

     In conclusion, if you want to get richer, you should invest your Neopoints. There are many ways to make money and many ways to invest. So, pick what suits you and fit it into your routine. The Money Tree cannot grow money—but you can.