Stock Market Tips
The Stock Market is normally at it's highest at 4 am NST
and at the lowest for buying at 3pm NST. Always look for the
bargains and wait until they go up at least 50% before you sell, best
is to buy them and leave them for about a week and your normally see
a huge difference
The stock market is a good way to make NP. If you buy 1000 shares of a
stock at 6 points (since 6 is the lowest a stock can go) and wait till
it goes up 1 point, you will make 1000 np. Every point the stock goes
up that's how many thousand np you have gained (if you have 1000 shares)
as soon as the stock goes up a couple of points, sell it, and buy
another stock at 6 points. This gives you a profit of 1000 np or more.
It is a never-ending process that gives you big NP!
THE NEODAQ DEFINED....
Think of the NeoDaq as a money market account for your neopoints. Placing money inside the bank only gets you around 350 NP a day if you have one million neopoints in the bank. Yes, the 350 NP is guaranteed, but it's only guaranteed if you LOG ONTO NEOPETS every day and collect the your neopoints. With the NeoDaq, you can let your money sit until you come back and play neopets, and who knows?? Maybe you're stocks have raised in value ;)
So let's begin, HOW does someone purchase stocks from the NeoDaq???
Well, first of all, go to the Stock Market: (Go to Games, then click on the Chia at bottom of the page, the chia is pictured in the other frame on this page)
Now you'll see this nice page of Nigel the Chia and a cute ticker tape scrolling by the top of your screen ... just like the real NASDAQ.
Then you have these options:
Home | Find Stocks | Bargains | News/Research | Profile
My Portfolio | Buy | Sell | Help
I use Find Stocks to get a listing of all the Stocks Available in Neopets.
TIP: The max. shares of stocks you are allowed to purchase a day is 1000 shares. So choose your shares wisely.
HOW TO PURCHASE NEOSTOCK
Once I find the stocks I like, I click on the stock initials. For this example, I clicked on "SFTP" Which took me to this screen:
By getting this page, you get to read about the company you are about to purchase shares of NeoStocks in. This also gives you a good look at the competitors of Stuff-A-Pet, Inc.
If you are certain you are interested in this stock, then click on the name "STUFF-A-PET INC." again and it will take you to this screen.
In my example, I purchased 1000 shares of NeoStock for STFP. Remember that at this point you must have enough neopoints on you for this transaction. For this example, the STFP was at 6 NP/share, so 6NP x 1000 shares = 6000. So 6000 neopoints will be deducted from your account.
TIP: You can only purchase 1000 shares of NeoStock a day. So you can spread your 1000 shares around or you can place it into ONE NeoStock. This is up to you. I just used 1000 shares for this example.
Once you click on the button "Buy Shares", it will take you to this screen:
This page is your Portfolio page. So right after you buy a NeoStock, the computer will automatically deduct the necessary neopoints from your account and take you directly to your "My Portfolio" page.
The above example is a snapshot of Sunyee's Portfolio. As you can see, I have purchased stocks previously.
TIP: Nigel the Chia is nice to Neopians who purchase stocks, he doesn't charge a commission for purchases!!! ^_^
TIP: A rule that I live buy is that I only purchase stocks that are around 5NP or 6 NP a share. So that means a 5000NP to a 6000NP investment a day. It's rare that a NeoStock ever goes below 5 NP a share ... but should it ever dip that low, I am sure to purchase some more because I believe that it will always bounce back up to at least 6NP or 7NP a share!!!! ^_^
HOW TO SELL NEOSTOCK
To sell a NeoStock, go to "Sell". I do not believe there is a limit to how many shares of NeoStocks you can sell. I've sold thousands of shares of NeoStocks a day. However, each time you sell, there is a 20 NP commission charge by Nigel the Chia.
TIP: It is NOT 20 NP per share of NeoStock, it is 20 NP for each batch/trade of NeoStock you sell.
For example, I had 500 shares of BB. If I sold 250 shares of BB 1st, and then I sold another 250 shares of BB ... I would be charged a total of 40 NP of commission by Nigel.
So to save money, I sold all 500 shares of BB all at once.
So 500 shares of BB made me 4000 NP. I had 6692 NP before this sale, now I have 6692 + 4000 - 20 = 10,672 NP in my account. WOOHOO!!
Now my next trip will be to the bank to deposit this money or I can buy more NeoStock with the money I've earned. ~_^
Sunyee's NeoStock Tips
Now that you understand the basics to buying and selling NeoStocks, now comes the tough part ... when to buy and when to sell.
I don't know why some shares of stocks can raise as high as 100 NP/share. I'm also clueless as to what TRULY drives the NeoDaq market. It is for this reason that in order to avoid losing money, I always go for bargain stocks.
I always buy low sell high.
Case Study #1:
Sunyee stupidly bought 800 shares of BB at 8NP/share. (6400NP) Thinking that 8NP/share for BB would be a bargain, she later on found out that it kept on dropping in value.
One time it dropped to 6NP/share. So to make up some money, Sunyee bought 1000 shares of BB NeoStock at 6NP/share. So Sunyee spent another 6000NP on BB share stock.
The next day, BB dropped more to 5NP/share!!! So to save some humiliation, Sunyee bought another 1000 shares of BB NeoStock at 5NP/share. Which is another 5000 NP.
What caused Sunyee to buy more shares of a falling stock?? Well, this is Sunyee's theory of dilution:
#1 800 shares 8 NP/share 6400 NP
#2 1000 shares 6 NP/share 6000 NP
#3 1000 shares 5 NP/share 5000 NP
------------------------- ----------------------
2800 total shares of BB 17,400 NP total spent
17,400 NP / 2800 share = approx. 6 NP per share
So the average share price of my entire portfolio for BB is really only 6 NP per share. So if BB ever raises above 7 NP per share, I still made money, despite the fact I originally bought at a higher price of 8NP/share.
How does Sunyee know this?? Well, this is how the real stock market works too, but this is only true if I know that the company won't hit rock bottom or go bankrupt. Since this is Neopets, I highly doubt BB will ever go bankrupt. =P
But it didn't just end here. Sunyee got greedy. About a few days later, BB stock went up to 7 NP/share. So Sunyee sold Batch #2 and Batch #3 at 7 NP/share.
Then Sunyee waited an entire TWO WHOLE WEEKS for BB stock to raise to 9 NP/share, and finally Sunyee sold Batch #1 of BB NeoStock.
Which means this is how much money Sunyee finally made:
#1 800 shares 9 NP/share 7200 NP - 20NP
#2 1000 shares 7 NP/share 7000 NP - 20NP
#3 1000 shares 7 NP/share 7000 NP - 20NP
------------------------- ----------------------
2800 total shares of BB 21,200 NP total spent
So Sunyee spent a total of 17,400 NP buying BB, but earned 21,200 NP after a period of 2 nail-biting weeks. Which means a profit of 3800?? , but NO! Sunyee have to deduct the 60NP total commission charged by Nigel. Which means she really only made 3740 NP.
So is 3740 NP profitable??? Well, let's compare:
If one million NP in the Neopian bank earns around 350 NP a day, if it took Sunyee 2 weeks (12 days) to earn her 3740 NP.
3740 NP / 12 days = 311 NP / day.
So in this Case Study, Sunyee didn't earn more money than what she could have made if she left her money in the Neopian bank (assuming a one million NP account). But Sunyee learned an important lesson - she's NEVER buying another share of BB NeoStock ever again!!! =P
But another lesson to be learned here is it would have been worse on Sunyee had she not used this dilution process. If Sunyee just waited the 2 weeks to finally get rid of her batch #1 of 800 shares of BB NeoStock, then she would have only made a 780 NP profit.
780 NP / 12 days = 65 NP a day.
That would have been really bad and Sunyee would be a very unhappy Neopian BB stock shareholder.
Case Study #2:
Everything goes well and every stock Sunyee buys goes up in value in a very short period of time ... end of Case Study #2 =P
Ok, so that's pretty much all there is to it. Case Study #1 pretty much summarizes the worst case scenario Sunyee have had.
Did you catch an Error???
Also, did you catch the mistake Sunyee made in Case Study #1 when she sold the BB NeoStock???
ANSWER: Sunyee sold Batch #2 and Batch #3 separately. Therefore Nigel the Chia made an extra 20 NP off of Sunyee's NeoStock sale. Sunyee should have known better and sold both Batch #2 and Batch #3 as a SINGLE NeoDaq trade.
Oh well, I'm sure Nigel needs the extra 20 NP to pay for the gas in his cool red sports car. =P
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