A simple, no-frills
for the Neopian stock market.
There's a lot of information out there about the Neopian stock market. In my opinion, comparing price histories and following stock ratings are a waste of time. They don't help you make better purchasing decisions, and you don't make more money than you could without them. All you really need to be successful is a well-built portfolio, which you can get by following a simple 3-step method to decide which stocks to buy.
The key to this method is a high level of diversity - spreading your money between all companies equally, not selecting just a few based on their history or your predictions. You don't avoid companies which you don't feel will sell as often, or which are rated poorly.
The goal of this method is to collect enough shares overall that you'll have a healthy number of shares of every company when they rise, and to prevent you from collecting significantly more shares of the companies you're rarely able to sell.
As for the method's simplicity, all you need to keep track of is the number of shares you hold in each company, and their current prices at the time you're buying or selling. Many people use the Neodaq sheet for this; I just use Neopets itself.
So here's the method...
- Check the stock prices, and pick out the ones which cost 15np to 16np per share.
- Look through your own portfolio, and find whichever of those companies you have the least number of shares of.
- Buy 1,000 shares of that company.
That's it. It's very simple.
If you're following these steps properly and in order, the companies you have fewer shares of will take priority over companies which have a lower price, so long as the price is 16np or lower.
As your portfolio grows, you'll find it's impossible to follow this perfectly. Feel free to allow a difference of a couple thousand shares between companies, or paying a little more for something that rarely gets to 15-16np.
I suggest learning to play a few games so you can afford to invest 15-16,000np every day. Every day you don't buy shares, you've lost the opportunity to sell those shares at some point in the future.
When it comes to selling, the method can be as easy or as complicated as you like.
I personally like the simple approach, where you just pick a price and sell all your shares in a company when it reaches that price. It's easy, and you get an average profit of your selling price minus the purchase price.
Specifically, I recommend selling at 60np per share. It's a little hard at the beginning, but it makes you about 1.3 million profit per month in the end.
If you can't afford the time or neopoints to invest for a few months with no profit, which is how long it takes if you're selling at 60np per share, pick a lower price to sell at and work your way up.