Pyramiding the Market
STOCK MARKET - Making 6 percent, 8 percent, or even eleven percent a year on your
hard earned NP isn't very exciting. You aren't going to get rich with all your
assets sitting in the Bank. The Neopian Stock Market can make a lot more NP. Starting
with nothing, with a little work and a lot of patience, in 6 to 8 months you can
have over a million in invested NP, and a weekly income of 50,000 to 100,000 NP.
During the first 6 to 8 months you will have to spend an hour a day. After that,
it will take 2 minutes a day.
If you are an old hand at Neopets©, with plenty of NP (about half a million
to one million minimum to invest) you can skip to stage 3 or 4. Your returns
will start after just a couple of months.
Before continuing with this article, ask yourself this question; Are you patient?
If, through a random event you find a Faerie or a codestone or something else
of value, what do you do? If you sell it for 3500 when the market is at 4000
just to hurry up and get the NP, stop reading this article, go play a game and
have fun, this won't work for you.
This article assumes you have read all the help sections and instructions
for the stock market and know how it works.
Stage One: First you need some NP to buy stock. I recommend playing
pyramids. You will need 3750 each day to buy 250 shares of stock selling at
15. If you don't like pyramids, play some other game(s) until you reach the
required money. Whatever you play, it shouldn't take more than an half an hour
to an hour.
Next go to the Stock market link at the bottom of the games page and click
on it. Click on find stocks. Click on the link for the full list. Look down
the list for all of the stocks selling at 15 (if any.) If there is just one,
buy 250 shares of it. If there is more than one, buy 250 shares of the one you
own the least of. If you don't own any of the more than one stock, flip a coin,
it doesn't matter, buy 250 shares of either.
If there is nothing at 15, come back at least an hour later. If you still
don't find anything at 15, at this stage you should set the NP aside and wait
and buy an extra 250 the next day. At later stages, since there is a daily limit
of 1000 shares, you'll have to keep checking back, or finally buy something
at 16 or 17.
While your there, click on your portfolio. If any stock you own is selling
at the target price sell it. I recommend a target in the mid to upper 20's.
I used 27 with great results. You could start using 25 and move the number up
6 months down the road. Sometimes the stock will move up past your target before
you see it, this is a bonus, sell anyway. Don't go shopping with the NP. During
this stage use the proceeds from any sale to buy another stock, or extra shares
if there is just one to pick from.
Repeat this process everyday for the first two or three months. About a week
before you begin stage two, stop buying extra stock with sale proceeds. Put
the money in the bank instead. When you have set aside about 20,000 in sale
proceeds you can start stage two.
Stage Two: This stage is the same as stage one, except you are buying
500 shares per day. You'll be using the 3750 made from playing games, and 3750
from the sale proceeds in your bank account, another difference is that you'll
always be putting the sale proceeds in the bank and not buying extra shares.
This stage lasts a couple more months.
Stage Three: You are going to continue as in stage two, except you
should have lots of money saved in your account, and now buy 1000 shares per
day. This stage lasts a month or two.
Stage Four: Now you can stop playing the game you used to get money
for stock, or keep playing and use the money for something else. Your stock
market habit is supporting itself. Just don't start spending any of the proceeds
yet. Another month or two on this.
Stage Five: You have arrived. You should now be taking in 50,000 to
100,000 more per week on average than you spend on stock. As long as you keep
a couple hundred thousand NP on hand, you can spend the extra. You may go a
week or two without a stock reaching the target, but suddenly a couple of them
will, and you'll probably have four or five thousand shares of each.
There are a couple of things that look bad, but really aren't. The first thing
you'll probably notice is that the stock your holding in your portfolio isn't
worth what you paid for it. Several of the stocks are probably at 6 a share.
Don't worry about it. This happens because all of the stocks that balance those
out have been sold. Most of the stock in your portfolio was purchased with profits
from other stocks, anyway. Lastly, you only way you lose NP on those stocks
is if you sell them. Neopian stocks are like roller coasters... up, down, up,
down, up, down. The goal here is to keep the income coming in, so you won't
ever sell them until they go up. Over the course of time, you will have more
and more stock in your portfolio. At any given time, if you sold everything,
you would average about 12 NP per share, so don't do it.
The other bad thing that can happen is a stock going bankrupt. This is rare,
but it does happen even in Neopia. This will have the effect of reducing the
value of your portfolio by a small percentage, but won't have but a slight effect
on your income. In a couple weeks you'll forget you ever had it.
If suddenly you get a windfall and half your stocks hit their targets, save
some of the proceeds as you'll need to build back up some supply.
After another month or two your income will be safely 100,000 on average per
week. If you want, you can raise the target price a little. This will make you
more money, but will require a bigger portfolio representing more of your NP,
and use up some of your income for a while. Don't raise the target too high
or you'll have a multi-million NP portfolio with no regular income.
During the 6 months you played games to buy stock, you worked for and invested
about 2/3's of a million NP. Your portfolio, even at it's reduced value, should
be worth significantly more than that and will keep getting bigger for a while.
You should be getting that 2/3's of a million NP back as income every 6-8 weeks
(that's close to 5 million NP per year.)
As with all things Neopian, this is based on what I have experienced so far,
and the way The Neopian stock market currently works. I was able to skip stages
one and two, as I had made a lot of NP trading in my shop, as well as made 10,000
to 20,000 a day playing games for 3 or 4 hours. So can you!
Good luck and good trading. (But most of all have fun!)