How I became a Stock Market Millionaire: perfect no-fail get rich strategy
May 25 '06
The Bottom Line a.k.a. The NeoPets Stock Market Guide: Unique Buy Low, Sell High get rich quick strategy.
Get Rich
In The Neopets Primer: Getting Stared On That First Million!, The Neopet Primer II: Making The Second Million!, and So You Want To Get Rich At Neopets? Quests, Quests & More Quests!, Freak369 tells you all about how to get rich on NeoPets: Games, Shops, Quest, Random Events… all but one method: the NeoPets Stock Market.
senseless
When I started with the Stock Market, I was befuddled by it. None of it seemed to make any sense. After more than a year of playing the Stock Market, and figuring out how to do it, I dare state with certainty-bordering probability that my initial impression was right: the NeoPets Stock Market does not make any sense.
I will now reveal my heretofore top-secret Sure-Fire NeoPets Stock Market Maximum Profit Strategy. To do so, it is probably best to first cut through the clouds of unknowing, the haze of uncertainty and the doubts of misunderstanding surrounding the NeoPets Stock Market.
What you need to know
The facts as I understand them now are:
1. It doesn’t make sense. There is no rhyme or reason to how stocks move up or down.
2. Nigel the Commodity Broker Chia never says anything remotely useful.
3. The News and Research is no more informative than random noise.
4. The Stock of the Day is not a particular good choice in any way.
5. The people on the Stock Market Message Board are all hoping that there is someone else with inside information, but it is just them.
All in all, the most informative part is the boring disclaimer at the bottom of the News and Research page: Well, it is certainly the most factually accurate part.
As far as I can tell, none of the share prices is based on anything else in the game.
Winning Strategy
Once I realised it was all random, I had my sure-fire profits strategy, which I managed to summarise as follow: Buy Low, Sell High.
Easy to remember, huh?
No need to thank me for that.
rules
To apply my uniquely successful Buy Low, Sell High. strategy, you need to know the NeoPets Stock Market rules.
These are
1. The Buy and Sell price of shares are identical.
2. You pay a small, fixed commission per transaction for selling shares.
3. You can sell anything anytime you like.
4. You can buy at most 1000 shares a day.
5. You cannot buy shares trading for less than 15 NeoPoints per share.
Currently, the commission you pay when you sell shares is 20 NeoPoints per transaction. It is somewhat silly, but even when you are selling say a million NeoPoints worth of stock, you need to have that 20 NeoPoints ready for the transaction to proceed.
Maximise your Profit
You want maximum profit? Buy Low, Sell High!
To maximise your profit, you need to buy and sell as much as you can. That means buying as much as the rules allow.
Thus, you buy 1000 shares each day. Every day, no exceptions.
Make it part of your daily NeoPets routine to buy 1000 shares.
Buy Low
You want to buy these thousands shares as cheaply as possible. You cannot buy cheaper than 15 NeoPoints per share, so you look for a share currently trading at 15 NP. It really doesn’t matter which share it is, or whether the share is moving up or down, all that matters is what it sells for. We do not just buy low, we buy rock bottom.
A thousand shares at the minimum price of 15 NP per share is going to set you back 15.000 NeoPoints. You make that through games, through quests, random events and so on. Once you have some money in bank, and shares on the Stock Market, you can stop doing all that and go for the laziest approach of all: make NeoPoints by selling shares. Ah! The laid-back life of a stock market millionaire.
choice variations
If there are two or three companies selling at 15 NP piece, pick any one. It does not matter which one. You can choose the share you have least of or the share you have most of. It does not matter. Just be glad they are trading at 15 NP and pick one.
two variations
If there is no company selling at 15 NP, come back a few hours later. If you try this several times a day, and you still cannot find any company trading at exactly 15 NP that day, you must take your pick from two variations on the basic scheme:
1. None of the shares are cheap enough. Do not buy anything.
2. Settle for a company that sells at 16 or 17. Profit will be slightly less, but profit will be made nonetheless.
To maximise your profit, go with choice 2.
Sell High
The stock you bought may go up or down. There is no telling. If it goes down, you need to be patient and wait for it to go up again. If it goes up, you can sell to take your profit. This is how you get rich on the Stock Market.
The big question is when to sell. If you just bought a thousand shares at 15 NP a piece and they are now trading at 17 NP, you can sell to pocket a quick 2000 NP profit (minus 20 NP selling commission of course, but lets ignore that). If you wait awhile, the price might become 20 NP per share, and that equals 5000 NP profit. 5000 NP is 250 % of 2000 NP, so it pays to wait. However, it might also go down again, even below 15.
If you were to sell below 15 NP a share, you’d be taking a loss. In practice, you simply do not sell low priced stock. Taking a loss might destroy your profit. The system is to exercise patience; you keep the NP tied up until the share price becomes interesting again. You should not worry about it. The fluctuations are random, it is sure to go up again. You will have more and more shares tied up over time, but you will take greater profits when you take them as well. It is worth it.
Pick your own profit margin
When I started, I was happy to make a few thousand NP profit. In fact, when I started, I could not even afford to buy a thousand shares. I was buying a few hundred shares at a time. Today, I buy thousand shares of one company each day. I do not sell often, but when I sell, the profits are in the five digit range.
Later, I wanted it to at least double before I would sell it. Today, I want a share to at least triple before I will sell it again and take my profit. It takes more patience for a share to reach 45 NP a share. However, if you can afford to wait you should do it. You need to figure out the minimum profit you want versus how patient you are to get that profit. These two things go together. You must decide on a balance.
Over time, you can move that balance. As you get richer, you can afford to be more patient, and move the minimum profit boundary up over time, as I did. It is important to move it up, as that is the only way you can really improve your profits compared to other who follow this fantastic plan and diligently buy 1000 shares each day.
Sell High
Really, sell them. If shares reach the minimum profit you established, do not dally, but sell. Don’t worry about the possibility the share will rise further. Sometimes it will, sometimes it will not. You got the profit you decided on, so take it.
If it really bothers you to sell a lot when the shares are doing so well, sell only part of them. Go ahead, do it. You may get lucky, but you may also come to regret it as the shares plummet back. You make your choice and live with the consequences.
Come on, be an adult, stick to the plan. It requires practically no thinking and you’ll get rich quick anyway. It’s a real no-brainer.
Spread Them
There is no telling which share will go up or down. To have a reasonable chance of success on the short term, you should spread your investments. That is good advice in general, but it is also completely irrelevant to this sure-fire get rich scheme.
After all, I told you to Buy Low. Each day, you will be looking to buy a share trading at 15 NP per share. You ignore all investment analysis, you ignore the message board, you do not look at what you already have, you just buy at 15 NP.
Do that day in day out and you will automatically develop a varied portfolio that spreads your investments over all of NeoPia’s companies.
Yes, this super-duper amazingly simple strategy automatically gets that right too.
The Real Bottom Line™
This strategy is good for your bottom line.
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