Stock Tips on NeoPets Stock Market — The Kind Tips - Tips for Life, Study, Work and Entertainment

Stock Tips on NeoPets Stock Market

The Neopets Stock is not exactly the same as real stock market; however, the general guidelines and rules are also applied for it. To name a few, you should buy low and sell high, keep track of your stock’s performance and diversify your portfolio.

1. Buying.

In the Neopets stock market, you are not able to buy a stock worth less than 15 neopoints a share, though you may hold stocks that are dropped below the price. Wise Neopets traders usually buy new stocks that are worth around 15 to 20 NP. Never purchase stocks that are more than 20 NP because it will be difficult for you to make money. Investing in a stock at 30 or 40 NP gives you less room to grow while a 15 NP stock is more likely to grow in one or two shocks into 30 NP or even higher. When you are considering which stock to buy, you need to see which ones in the recommended price range are increasing or stable, and don’t buy stocks that have dropped down on the day. Buying small amounts of share is costly because no matter how many shares you purchase, the transaction fee is flat—20 NP. Thus, you should buy at least 500 shares at a time or more preferably, 1,000 shares per day.

2. Selling.

Many Neopets stock investors set a rule to sell their stocks if they have gained 100 percent of what they paid for them, for example, if you purchased a stock at 15 NP, you will sell it at 30 NP. Some other traders will not sell until the 15 NP stock is worth 60 NP, which is 200 percent of what they paid for it originally. If you bought multiple thousands of shares in the same company, you can consider selling 1,000 to 2,000 when the price is at its 100 percent mark and keep the rest until it reaches the 200 percent mark. By doing so, you hedge against the probability that the stock will drop back down instead of growing up some more. Eventually, don’t sell at a loss because this is the only way to lose neopoints in the stock market game. If you continue to hold these worthless-seeming 6 NP shares, finally they will go up. There are very few stocks in the history of Neopets have gone to bankruptcy completely.

3. Diversify investments and keep patient.

Just like in real life, diversification of your investments is important in the Neopets stock market game. You should spread out your portfolio among various stocks but not concentrate on few companies. If you have the money to invest more, purchase the maximum shares per day and spread out the purchase in a week or over several sections of the Neopets economy. For an example, don’t just buy food and entertainment stocks, instead, you should also buy transportation and industrial stocks. Please keep in mind that stock market game is not a short-term game and you won’t be able to see significant profits in months, so you need to make sure that you can afford to hold the stocks. Don’t put your money in the market if you are expecting to get it back very soon.

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