Techniques for Advanced Stock Investing

So why don't more people use it? Many people think it's confusing, not worth the wait, and, of course, expensive. Others may have tried but, without the proper strategies, haven't seen much profit and given up.

But there's no reason why anyone can't make loads of NP off the stock market. It's my primary source of NP. About a year ago, I wrote a guide covering basic strategies for the market. If you're completely new to the stocks, go there and you'll learn everything you need to know.

But most of Neopia already knows about the stock market, and they want more advanced, quick, and profitable means of making NP. So here are my updated strategies.

Investing

Everyone knows the rules, right? You can buy 1,000 shares of stock every day, and the lowest you can buy a stock at is 15 NP a share.

So, seek out stocks with the price of 15-and if you can't find any, try some for 16 and 17 NP-and buy 1,000 shares of one. You now have the makings of a portfolio. Simple. Do this every day for about two weeks (or as long as you can afford it), and you have a portfolio waiting for a good increase in the market.

Over time, I've learned some "hints" when forming portfolios. Take from them what you will:

• If possible, buy stocks listed on the ticker in green or black. This means that the stocks are going up or haven't had any change. Avoid ones in red (which have lost value). The theory behind this is that when the stocks are already going up or neutral, they are more likely to increase in value. This may be good if you're into short-term investing, but for long-term the odds aren't too much better.

• Don't buy competing stocks (that is, stocks with the same little icon). Most of the time, one stock in that field has a high value, and the rest are less than or close to the selling price. (You can test this for yourself by clicking any stock's ticker symbol at the top of the page. A list of the competitors will be shown.) This is, actually, good advice. You want to have a varied portfolio.

• Avoid buying the same stock twice until you have at least 15 different stocks.

Most of investing is a waiting game. You fork over a lot of NP, then anxiously wait for your investment to pay off. Be patient. It may take a few weeks for a stock to get high enough to sell. But, if you have a lot of stocks, you might sell one every other day, at a profit of tens of thousands of NP. It just takes time, and believe me, it's worth it.

Researching

It's a good idea to keep an eye on the market and research which stocks are doing well. You can do this by checking your portfolio daily, and noting which stocks go up or down. If you see a stock start to go up, you may later choose to invest in it again. Or if you see a stock continuously below the selling price, make a mental note not to buy that again, and sell it off as soon as possible.

If you're in a guild, you can discuss good stocks to buy with other members. If others are investing, you can tell each other what stocks are going up and discuss when to sell or not.

Most of stock market is random, however. Once you have established what stocks you want and have bought them, just check on them daily to see how they're doing.

Speculation

Once you're satisfied with your investments and research, you can speculate. Let's say you have 20 stocks, at a net value of 300,000 NP. Keep in mind that it may take about a month to amass those stocks.

You can probably expect one stock to reach 30,000 NP, on average, every four days. (It can be less or a lot more, depending on stock trends.) If you originally bought the stocks at 15,000 NP each, and buy new ones at that same price, this means you will gain at least 15,000 NP every time you sell. That's about 26,000 NP a week. And remember, you will often sell stocks for more than 30,000.

That means you can make 100,000 NP a month, and you'll be well on your way to becoming a Neomillionaire. Sound good enough? Now for the actual selling.

Selling

There's no hard-and-fast rule for selling your stocks, so I must first bestow upon you the golden rule of "Sell when you feel like it." Some people I know sell stocks as soon as the value hits 25; others wait until 30 or more. It depends on how patient you are, and what factors motivate you.

First, you can go by a "looks-good" mentality, i.e., your mood. If you're saving for an expensive paint brush, this may not be for you; but if you just need quick spending NP, sell stocks when the time seems right.

You can also establish a rule-say, you'll only sell a stock when it gets past 25. Consistency is good, and can get you a lot of NP this way. This technique is good if you're saving for something, and have a lot of time to wait.

But what if your stock is suddenly at 40? Should you sell it and count your blessings, or hope to see if it climbs? Alas, the perils of aggressive selling. If it's a stock that rarely sees much change, or you're not feeling too daring, go ahead and sell it. But if it's a highly fluctuating stock (I'm thinking of the way-back market surge of BOOM, the value of which got into 3 digits, and the future stocks like it) you can watch it closely to see if it goes up-and at the first sign of a decrease, sell it.

If you use slow, methodical techniques, you'll see small, steady profits. If you use aggressive techniques, you can see substantial profits-or losses. But remember, you never really "lose" NP unless a stock goes bankrupt, and that rarely happens. And when you sell a stock, always buy a new one to replace it-that way, your profits will keep on coming.

The stock market is all about risk and daring, so dive in with an open mind.

I hope this article has helped you. If you have any questions or comments, Neomail me. I'm off to see if TNPT-the official stock of the Neopian Times-goes up to 15 so I can buy it.