Guide to the Stock Market


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Thowra

11:32pm May 8 2014 (last edited on 12:28am May 9 2014)

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Posts: 749
INTRODUCTION

This is a GUIDE only. I'm writing it to help the newer players understand how the stocks work. It will not guarantee that you suddenly become very rich. I'm just passing on the knowledge that I use to make tu, it does not necessarily mean that it can make you rich as well. However hopefully you will learn something from it, and use the knowledge to make your own decisions.

This guide will be split into 3 parts:

-Stock Mechanism
-Stock Trends
-When to buy/sell stocks

PART I: THE STOCK MARKET MECHANISM


Unlike the real world stocks, which is driven by economy and buying/selling shares, I believe the Res stock market is a mixture of random chance and buying/selling from the NPC shops in question. Now I say I believe because I'm not 100% sure that is how it works. From talking to staff and just watching its trends, I believe the stock market is about 80% random chance and 20% sales from NPC shops. This is why shops with little purchase like GLO are always low, and popular shops like ANT are always high.

This also means that you cannot predict how the stocks will behave. However, from following the stock market for a long time, you will gradually see it follows a loose pattern.

In addition, there are certain restrictions to the stock market compared to the real world one. You are restricted to buying 50k shares per game - this prevents rich players from buying all the stocks, and suddenly making billions of tu in one day from selling like 2million shares or something.

The stock market updates twice a day - once every 12 hours, at 12am and 12pm Res time.




Thowra

11:32pm May 8 2014 (last edited on 7:45am Sep 3 2014)

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Posts: 749
PART II: Stock Trends

These are just trends I've noticed in all my time playing. They may not be accurate. I highly suggest you observe the stock market yourself and note down the stocks you find rewarding.




THE COLOUR CODE:

RED - Volatile Stocks
These stocks usually sit in the 150-300 range, and rarely come down. Occasionally, around once every 5-8 months, they will suddenly spike up in value, going for as high as 700+ per share before decreasing steadily for a few days, and finally crashing to less that 20 per share. After several days of being worthless, they will spike up again until they hit 150+, where they will then spend months fluctuating wildly between 200 and 300.

ORANGE - Reliable Stocks
These stocks are very similar to the volatile stocks. However, the one difference is that they will drop down to less than 100 per share far more often than the volatile ones. Once they hit 200+ per share however, they will hover in that range for 2-4 weeks until spiking up to over 500+ per share, and then heroically crashing to less than 20 per share a few days later. After about 2-4 weeks of being worthless they pick up in value again, and the cycle repeats.

YELLOW - Profit Stocks

These stocks are sad little things that sit stagnantly at less than 100 per share for anywhere between 3 weeks to 5 months. However, every once in a few months - and I'm talking like several times a year - they will rocket in value, going for 500+, but after a few days they will go back to being sad and boring again. For most of the time they will range between 30-100 per share.

BLUE - Baby Stocks
I have never, ever seen these stocks go over 200. Older players tell me these stocks can go over 300, but apparently this only happens once every 2-3 years. Like the profit stocks above, they tend to hover in the 10-100 range, but unlike the profit stocks, they do not show a tendency to suddenly rocket in value.

GREY - Dead stocks.

These stocks are dead. You can't buy them. So I won't bother with these XD




Thowra

11:32pm May 8 2014 (last edited on 12:59am May 9 2014)

Normal User


Posts: 749
PART III: When to Buy/Sell Stocks

Ah, the trickiest question of all. I strongly believe that this varies wildly from player to player depending on your financial situation. I believe most players here on Res can be categorised into the following groups:

1. New players, or players who are not very rich and need to get tu quickly
2. Players saving for an immediate goal
3. Players saving for long-term goal
4. Players with no immediate goals and are just making tu for the sake of tu


As a player who progressed from being new to a site to accomplishing every single goal and now can afford to sit around making tu for no reason at all, the below are the rules I've used at each stage of my time on Res:

1. Buy below 20, sell above 50
2. Buy below 200, sell above 250
3. Buy below 150, sell above 300
4. Buy below 100, sell above 400


1. New Players needing tu quickly
If you are not rich in the game, you will not be able to buy your full 50k of shares per day. You need to make tu as fast as possible. This means you can't sit around waiting for stocks to get high or low, you need to keep buying and selling to make a profit.
When you first start off in the game, you literally cannot afford any stock over 100. This is where the profitable and baby stocks come in useful. Buy stocks if they are under 20tu per share. Try to split your investment into 2-3 different stocks. That way, you maximise your chances of having at least one of your stocks being higher than what you originally paid for at the next reset.
If the next stock market reset coincides with site reset, buy as many stocks as you can. Otherwise, buy up to 25k and save your other 25k shares limit for selling at the next reset.
You will not make very much profit this way. Probably around 500k-3mil every few days. But hey, where else are you going to get your tu from?

2. Saving for an immediate goal
Congratulations. After a few weeks you have a decent amount of tu. You have now graduated from the rank of 'n00b', and have enough money to start investing in the big guys.
If you have an immediate goal - for instance someone is holding a pet for you, or there is an auction ending soon, you still need to make tu as fast as possible. The only difference between your current financial situation and the newbie situation is that now you can actually buy 50k worth of shares per day, and you can actually start investing in expensive stocks.
For this instance, I would recommend the volatile stocks. Even though they may be at a sky-high 200 per share, you still stand to make a profit when the stocks go over 250, which happens very regularly, at least once a week. Again, try to split your shares so something will be higher than what you bought it for at each reset.
You will get 3-5mil of profit every time this way, and in a week you can, if you are lucky, pull in about 10mil.

It is at this stage that a lot of players tell others, 'oh hey don't sell that stock at 280, it can go over 350!' And then people start hanging on to their stocks and make no tu whatsover. I can tell you that there is absolutely nothing wrong with selling a stock at 250, because you are making a profit. The only difference is that you make less of a profit.

I mean, if you see that selling a stock at 250 will give you a 4mil profit, why are you sitting around waiting for it to reach 350? You have a 100% chance of making a profit, why would you gamble it on the off chance that you may get even more profit, when your chances of earning nothing is just as high?
If you need tu immediately, do not wait for the off chance of a greater profit.

3. Saving for a long term goal.
Nobody is selling an albino Aerix. You know it's worth 750mil. It's time to start long term saving, so when Aerixes are released into the market, someone might hatch and sell one, and you can buy it.
This is the stage when you can actually afford to sit around and fish for super profits.

This is the time to ignore that delicious 4mil profit, because if you wait, you can turn it into a 10mil profit. You can afford the risk of making nothing because it will not affect you if you lose, and the reward is much higher than the risk. By this stage, you will probably find yourself investing usually in the reliable stocks.

4. Making tu for the sake of making tu
Honestly why are you reading this, you have probably mastered the stock market already. Go sell retired items in your merchant shop and make hundreds of millions in one day. ;)




RainofStars

1:20pm Jun 13 2014

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Posts: 858
This is a great guide! I already know how to play but it's nice to see confirmation of the things I've learned myself. And I'm recommending it to newer players.
Mortal

2:46am Jun 15 2014

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Posts: 2,184
Very informative guide. c: Will be recommending it to new users. Thanks Thow <3





Shark

1:08pm Jun 15 2014

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Posts: 910
Thowra, this guide is awesome! Thank you for this! Very good for users who are trying to get a hang of the stock market. 



Sly

1:24am Jun 19 2014

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Posts: 102
Thanks for this. :)



I love Shaefu.
Thowra

7:23pm Aug 2 2014

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Posts: 749
Thanks guys, glad people find it useful! Bumping it up so it doesn't fall off the edge.




Mars

10:14pm Aug 9 2014 (last edited on 10:14pm Aug 9 2014)

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Posts: 969
Just in case nobody's said it yet, the gray stocks aren't buyable because they're in the process of being phased out, but you can still sell your shares from them if you have them. If they just took them away altogether without giving users a while to sell their shares in those stocks, they'd essentially just be taking your TU, because at some point you bought those shares. o3o

That was much more long-winded than I expected it to be. But this is a lovely guide ^^





Thowra

5:15pm Aug 10 2014 (last edited on 7:46am Sep 3 2014)

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Posts: 749
Ah, so that's why those stocks still exist. Didn't realise there were users who still owned them, haha. Thanks for the tip! ^.^

Edited guide: section about 'grey stocks'.




Thowra

7:45am Sep 3 2014

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Posts: 749
boop




Zaefyra

8:56pm Jan 9 2015

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Posts: 606
This should be stickied :) Good guide.



RainofStars

8:56am Mar 30 2015

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Posts: 858
Bumping this because I've been recommending it to other users.
Dead

1:58pm Jun 29 2015

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Posts: 178
Great guide! Bookmarking<3



Albion

2:00am Jul 8 2015

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Posts: 81
please is there any way of clearing out the stocks history log ... same for shop log I just need recent pages ... not 106 !



Exploring .... need a compass ... amd a return ticket !
Sarah

4:20am Aug 1 2015

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OuO -saves page- 



Farfalla

6:48pm Jul 16 2016

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Posts: 42
Ty so much for sharing this with us, that's very kind. This guide is gonna help me a lot^^
AnimalsRAwesome

10:07am Nov 30 2016

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Posts: 294
So, basically how it works is when it's cheap you buy it and when it's valuable you sell it? 



\r\n\r\n\r\n\r\n\r\n\r\nThe FNaF group.\r\n
Zen

11:22am Nov 30 2016

Artist


Posts: 3,203
Yep! 
Though some stocks have a better chance of going higher than others 



Shasenae

2:10am Feb 5 2017

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Posts: 6
something I've never been clear on with stocks (even in the real world). do they make money even if you don't sell them? like, I've always heard of stocks as parts of the business. as the business makes profit, does the profit go to the stock holders? if I leave my few stocks alone will they steadily make a small amount of tu, or will they just sit there with my name on them, waiting for me to sell them? sorry for the dumb question, but I have a very low business IQ lol
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