In the past, some members have inquired about the stock market or Neodaq. To help you if you want to explore this aspect of Neopia, I will give you the basics of the Neopian Stock Market.
Please Note: ALL TRADING/STOCK MARKET TRANSACTIONS ARE DONE AT YOUR OWN RISK!!!!!
First you need to understand what is being said...because the Neodaq has a language all it's own.
Stocks -A company can choose to offer a percentage of itself to the general public. This means you can invest your nps in some of the companies around Neopia. When you buy stock in a company, you are buying a share. You do not own the company. But your nps are invested in the company.
Portfolio-A portfolio is the total number of shares you have invested in any company on the Neodaq.
Ticker Symbol-A ticker symbol is a letter code used to identify a company in the stock market. It can be found scrolling across the top of the screen in the stock market. For example LUPE is the symbol for Lupe Consolidated.
Trading-The buying and selling of stocks.
Reading a Portfolio
This is only part of an actual portfolio. Companies are
listed by their ticker symbol in alphabetical order.
Today Column- In the today column, you can learn many
things about the stocks in this portfolio. Open refers to the amount the
stock was trading for at the opening of the Neodaq that day. TPP opened at
18. Current Price refers to the amount the stock is trading for now.
TPP is trading for 17. (Prices are updated every hour) Chg (Change)
is the amount of difference between the open price and the current price.
TPP lost 1 since it opened.
Holdings Column-Qty (Quantity) refers to the amount of a
specific stock you have bought. This portfolio has 3000 shares of VPTS.
Paid refers to the amount of nps you paid for the stock at the time of purchase.
VPTS was bought at 45,000 nps (45k) K denotes thousands.
Overall Column-Mkt Value (Market Value) refers to the amount the
stock is worth if sold now. ACFI is worth 56,000 (56k) if sold now.
% Change is the amount of change between the paid column and the Mkt value
column. In other words it is your profit percentage. ACFI went up
+6.67%
Neopets does make it easy to read. If it's red it went
down, if it's green it went up.
But what does it all mean you ask? Well, lets take the
stock TPP. It's in the green as we can see by the % Change column.
If it was sold now, you would make a profit. To find out how much, just
subtract how much you paid (15k) from how much it's worth (17k). So the
profit would be 2k. However, Nigel the Stockbroker has to eat too.
He charges a fee for selling your stock of 20 nps each transaction. So if
you decide to sell more than one stock, you may want to be sure to sell all at
the same time.
Getting Started
Now what?
A few points...
The stock market is not hard! It takes just basic math to
figure things out.
The stock market is not time consuming! It takes minutes
a day to check out your portfolio and make purchases.
The stock market is not fast!!! It can take months or
longer to realize a profit!!!
The stock market is not cheap!!!! It takes money to make
money....thousands of nps.
The stock market is AT YOUR OWN RISK!!!! Nothing is guaranteed.
Where's the Stock Market?
You can find the stock market in the games room. Search
for Stock market. Or simply click here.
The first person you see is Nigel...yep that's the Chia wheeling and dealing on
the phone.
You can also find the Neodaq linked on the front page of
Neopets.
Stock Market Secrets
Now the real secret to the stock market trading is not actually
a secret....buy low, sell high!!! A simple concept true but if you own
your own shop, one you actually already know. You never buy an item for
1000 nps and sell it for 100nps you would never make any neopoints that
way. Much better to buy at 100 nps and sell at 1000 nps. 900 nps
profit.
To put it in stock market terms...I see the stock PEOP is
trading for 15. I decide to buy. I purchase 1000 shares at 15 and
pay 15k. (1000x15=15,000) Next week, PEOP has jumped, it is now at
22. I decide to sell. Nigel must get his cut of 20 nps also.
So I sell 1000 shares at 22. Yielding 22,000. I just made 6,990
profit. (22,000-15,000=7,000) (7,000-20=6,990) Not bad for a
week...however, usually it is much longer. I always remove the original
amount I spent on a stock...I call it my seed money. This money I reinvest
in the stock market...the profit I spend or put in my savings account at the
bank or yes I invest all of the money in the stock market. But it is
profit...do with it what you want.
Tips
Nigel charges 20 nps per transaction...not per stock. If
you are selling multiple stocks sell them at the same time and save.
If you had bought that PEOP in the previous example at 18 you
wouldn't have made that much profit because your original outlay of neopoints
would have been more. (22,000-18,000=4,000)(4,000-20=3990) Not as
much profit. So I suggest that you don't buy stocks above 18 and it is
much better to buy in the 15-17 range.
Stock Market Rules
Yep the Stock Market has rules...here they are.
You can only buy 1000 shares a day on the stock market. It
doesn't matter how many different stocks you buy but your total shares cannot
exceed 1000.
There is no limit on how many stocks you can sell in a day.
The stock market updates every 00 and 30 minutes of the day.
The stock market doesn't close but it does start it's new day at
12:00 am NST.
You can not buy stocks lower than 15 due to stock market
regulations. It is to help keep the inflation down I believe.
I can do that...so how do I do it?
Well, first you have to find out which stock you want to
buy. You have 2 choices. Go to the game in the game room. At
the top of the page click find stocks. Then click full list...or click here.
This is the full listing of all the stocks. Or go to the bargain listing
which you can find here.
The bargain list is all the stocks that are currently trading under 20.
Once you find your way there, you can click on the ticker symbol. On the
next page click the Company Name. You will see the form below.
Fill in the amount of shares you wish to buy.
Then click the button to buy shares.
Congratulations!!!! You've just made your first stock
purchase. But that isn't the end....what about tomorrow? I suggest
that you embrace diversity.
Diversity
Although it is rare, sometimes stocks do go bankrupt. You
will know if a stock is bankrupt when the current price goes to 00. Once a
stock reaches 00 it will never go back up. But if you diversify your
holdings, (buy many different stocks) the chance that you will lose all you have
invested in the stock market is much slimmer. Don't put all your eggs in one
basket.
Now what?
Well, you have to figure out a sell point for your stocks.
You can take this several ways.
Poor Neopian
If you are a poor Neopian less than 200,000 in your bank
account. I suggest that you set your sell point low perhaps 20 to
25. This will give you a small profit but will be much quicker than
waiting for some of the other sell points.
Comfortable Neopian
If you have between 200,000 and 800,000 nps. and don't have too
much trouble getting the items you want, but you have to save a little.
This may be you. I would set your sell point a little bit higher.
You can afford to have your nps tied up for a while longer so make it between 30
and 40.
Rich Neopian
If you have over 1 million in the bank and don't have trouble
getting what you want I would make your sell point even higher...say around 50
to 60.
But the most important thing is are you happy with the
profit??? If you are then the sell point is right for you.
Selling Stock
You have the stock...you've made a profit. Now it's time
to actually sell. So here's how.
Go to your portfolio.
Then click on the arrow beside the stock you wish to sell...
The stock will open up...like this...
By this you can tell that I bought in groups of 1000 (this is
called a lot) except for the little group of 500 I bought. If I wanted to
sell it all I would fill out the blanks under the title sell...however, if I
chose to sell only the 500 lot I would fill just that one out. I can also
only sell 100 or whatever. Just fill out the blank with the amount you
wish to sell. Be sure you have the nps for Nigel before you click to
sell. He always wants his cut in advance. Then click the sell shares at the bottom of your
portfolio...
Nigel will take his share (20 nps remember?) And you will have
sold your first stock!!! Congratulations!!!
I hope this helps some of you...I wish I had known when I
started what I know now...:)
