Here are two stock articles I wrote. The first one appeared in issue 118 of the neopian times. The second was submitted a month later, but was not run.


Pyramiding the Market

Pyramiding the Market

by roweslab

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 NeopetsĀ©, 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!)








Pyramiding the Market-- Part Two
An Advanced Guild for making more in the Neopian Stock Market

by roweslab

The article appearing in the neopian times issue 118 was a very good guide on how to start with nothing and work your way up to making close to a 100,000 np a week in the Neopian Stock Market. The purpose of this article is to tell you how to make even more once you have completed that endeavor, or what to do if you are already rich in np and want some large scale income.

First, let me say that by now, all of you that tried the method from the last article should be seeing just how nicely it will work as time goes on. You should have accumulated a nice portfolio, even if it's worth less than you paid for it (and it should be at this point), and made about a half a dozen sales at your target prices. Your purpose here is to build the portfolio, not to be making a profit,

If you didn't understand the last article, or gave up because you didn't get rich yet, try re-reading the article AND everything on this site relating to the market. If you still don't get it, there are some great games here at neopets to play. There is nothing wrong with pursuing other avenues of profit or fun.

If you are an old hand at Neopets, you probably thought the last article a bit too basic. Well, this one's for you. The last one was meant for newbies and those never having played the market.

Provided you have plenty of NP (a few million lying around to invest), you are ready to head off in one of two directions. Both directions have a common theme, you no longer sell all of your holdings at the initial target price. Presented below are two methods of enriching your returns.


Method Alpha:

Stage Six: When a stock you hold in your portfolio hits your initial target price, sell all but two lots of the stock. You will need two additional target prices. For my purpose here, let's use 40 and 50. If the price drops back down, you proceed as normal. If the price of the stock continues upward, you sell one of the two remaining lots at 40. If the price goes down you go back to the original plan, and wait to buy more or the stock go up some more. You sell the last lot when the price reaches 50.

Stage Seven: Raise the secondary and tertiary target prices. Some may be happy using the initial price of 30, followed by 50 and 100. Others May want to use 30, 100 and 200, while still others use 50, 100 and 200.

Bare in mind that the higher you set the targets, the more you will have invested in your portfolio. You will have more stock, held over a longer period of time, but you will have greater returns. This is a balancing act that only each person can determine a level of comfort from.


Method Beta:

Stage Six: When a stock you hold in your portfolio hits your initial target price, sell all but two lots of the stock. You will need two additional target prices. For my purpose here, let's use 40 and 50. If the price drops back down, you proceed as normal. If the price of the stock continues upward, you sell one of the two remaining lots at 40. If the price goes down you go back to the original plan, and wait to buy more or the stock go up some more. You sell the last lot when the price reaches 50.

Stage Seven: When a stock you hold in your portfolio hits your initial target price, sell all but three lots of the stock. You will need three additional target prices. For my purpose here, let's use 40, 50 and 100. Use these targets the same as you would in the alpha method.

To expand the Beta Method, simply hold more lots of stock past the initial target price, creating more layers of target prices. If you were holding back five lots you might use; initial target 30, then 40, then 50, then 100, then 150, then selling the last at 200. Any choices here are subjective and require higher investmeents.

A mix of alpha and beta methods is also possible. Some things are best left up to each person to decipher for themselves.

Always remember that each lot you hold back from selling at the initial stock price represents an investment of 2/3's to 3/4's of a million np if done on a portfolio-wide basis.

The most important part of playing the Neopian stock market is not to bet the kitchen sink on it. If you need to figure out where your pets next meal is coming from, don't play with stocks. If you can afford it, the market is a great way to make some big profits, but if not, it is much more important to have fun in all things Neopian.

Good luck and good trading. (But most of all have fun!)




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