Last Updated on Tuesday, 08 November 2011 02:49
The Stockmarket can be a fun way to play and earn money, but please remember that:
|Trading and Making Money|
|Tips and Tricks|
Getting Started Any level can use the Stockmarket, all you need is a Stockticker. You can buy one of these for 20 points from the Points Building in the North Side. City > Points Building > Stock Ticker Now you have access to the Stock Market, which is also in the North Side of the City. You may want to read the rest of this Tutorial before investing in a Stockticker. Back to Top
Stock Logo: This displays the Logo for each stock. Clicking on the Logo image will take you to the profile page for that stock, which displays further information about it (see below). Stock Price: The current Price of the stock. If you buy a single share in this stock, it will cost you this amount. Selling a share at that time will earn you that much. Price Change: How much the price of a share in that company has changed in the last 24 Hours. % Chance: This is the same as above, except shown as a percentage. Last 24h: This also shows changes in stock price, in the last 24 hours, but in graph form. Clicking on this image also takes you the stock profile page.
|= Stock Value has risen*||= Stock Value is the same*||Stock Value has fallen*|
|* In the last 15 minute interval/ change|
|Click Here for larger image|
Description: This is found directly under the logo, and tells you what kind of company you are investing in. It may also give you other useful information- for instance, the Wind Lines Travel example we’ve used tells you that their stock will probably rise when more people use the Travel Center. This can be used to predict changes in stock prices, based on event, changes and trends within Torn City. Not all descriptions will give you this information though. It will also tell you about the kind of Stock Benefits you can expect from the company, once you’ve invested enough money, for long enough. TCB already supplies you with a complete list of these on our Stock Benefit page. Acronym: This is the shorthand/ nickname for the stock. It will often be used instead of the stocks full name. Director: Unimportant. Forecast: This is a stock forecast, based on demand for the stock and its current performance/ increase and decrease. This can be very misleading however- it is only an indication of current performance, and stock can change anytime. Keep in mind that everyone sees the same stock Forecast, meaning that a stock with a ‘Good’ forecast may be hard and expensive to buy into, but may be impossible to sell once its ‘peaked’, and begins to drop. On the other hand, a ‘Poor’ forecast may indicate an opportunity to buy cheap shares quickly. Make sure to look at other aspects of the stock before making your decision. Demand: This lets you know how many people are buying stock, compared to how many are selling (see Shares for Sale). If nobody is buying any, and everybody is trying to sell (For instance because the stock is falling), the demand will be Low. However, if everybody is trying to buy in, and nobody wants to sell, demand will be High. This is a good indication of how fast/slow you will be able to buy and sell stock, but is also prone to change. Current Price: The current value of one share in the stock. Market Cap: This is the current total value of all the shares in the stock (Current Price x Total Shares) Total Shares: The total number of shares in that stock. This number will only change if an NPC/ admin buys or sells extra shares in that company. Shares for Sale: How many shares are currently available to buy.
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Stock Performance Chart (24 hours): A larger version of the chart in the stockmarket, this graph shows you the performance of your stock in the last 24 hours. Latest Price Changes in the past 24 hours: This contains the same information as the graph above it, but with more precise numbers, showing you all the price changes in the last 24 hours (price changes occur every 15 minutes). Stock Performance Chart (7 days, 1 month, and 6 months): These are the same as the 24 hour chart, except they show stock performance over a longer period of time. These are also extremely useful in predicting future changes, and identifying patterns in stock. Depending on how long you want to invest for, you should use these, or the 24 hour graph. If you need to know what your money is likely to do within the next day, the 24 hour graph will give you an indication of this, and if you are happy to invest for 6 months or longer, the 6 month graph will let you see how your stock is doing in the long run. Note: Graphs may become distorted at different sizes. Graphs may become stretched or flattened depending on what kind of information they are displaying. Take this into account, especially when comparing different graphs. Buy Shares in This Company: Here you can buy shares in the stock. You can enter either the number of shares, or the total amount of money you wish to spend. If you want to receive Shareholder benefits you have to spend over the amount specified for the benefit, in one go/ click, here. If you put in the exact amount of money, it will be rounded down to the nearest share you can buy, so be careful. Even if you put in the amount of shares you wish to buy, these shares first have to become available for sale- meaning that someone has to sell their shares. This may take any amount of time.
Trading and Making Money This is a guide to playing, predicting, and making money (maybe) off the stock market. Stock Value These change based on two things: Stock Demand If lots of people are buying, and nobody is selling, stock value will rise. If everyone is selling, and people aren’t buying, stock value will fall. Other Market Forces Stocks are influenced by buying and selling within TC. As mentioned earlier, Wind Lines Travel stock value will increase or decrease, based on how any people use the Travel Center within TC. This is sometimes predictable, but is usually a random factor. ? You can’t rely on the two factors above to predict the stock market. There is always an element of luck involved. Predicting Stock Value This is where you make use of your graphs and stock information. Trends A trend is the overall direction that a stock is heading in. You can see this by looking at the graph- If it’s going up, it will probably keep going up, if it’s going down, it will probably keep going down. This is a very basic way to look at stock, and the trend will, inevitably, change eventually. There are short term trends, and long term trends. If the stock is going up in the 24 hour graph, it will give you an indication of where the stock is heading in the next few hours, and if you look at the 6 months graph, you will see the long-term stock trend of the stock (see bottom example). Other Players Since you are playing ‘against’ other players, you can’t rely on trends and stock direction to make money. This is for a very basic reason: Other players can read stock trends and information just as well as you, and want to make money themselves, rather than give it to you. It is important to remember: When your stock’s made a profit (selling): Are lots of people going to want to sell stock now, or soon? If your stock is going up fast, and you’ve made a large profit, so has everyone else. At a certain point, everyone will want to take their extra cash, before the stock price falls again. When this happens, the stock will reflect this, and start to fall, nobody will want to buy, and you may end up losing money, no matter how much % you’ve currently made. And remember that it might take a long time for your stock to sell! You need to be able to predict these events, and sell your stock while people are buying in- and be aware that other people are doing this as well, in order to make a profit. It is also possible that the long term trend for this stock is for it to keep rising, in which case it may also be profitable to keep the stock, and not think about selling at all. When a stock’s made a profit (buying): Are lots of people going to want to sell stock now, or soon? This is basically the same as the guide to selling, above. Eventually the stock will fall, and you may make a loss. What you are trying to do is buy some stock, and presumably buying shares from someone at a decent profit for them, and hope it continues to make a profit, and still be in demand so that you can sell it as well. If you are buying stock for the long term, a rising stock may not be the best value for your money, since the price/ demand may be high. When your stock’s making a loss (selling): How far might this stock fall? Can I afford to lose that much, or wait for it to come up again? When stocks are falling, it is very bad news in the short-term. It is likely that some investors will panic, and stock may continue to fall, causing a chain reaction. But it’s important to keep in mind that this is also an opportunity for other people to buy in, since stocks are for sale. Because of this, it is possible to cut your losses now, and try to sell before you lose too much money. But this is unlikely, since people, especially if they’ve made a profit until now, will be selling too, and new investors are likely to only want to invest once the stock has fallen as far as it’s likely to, to maximize their profit %. Of course, if you are at this point, you may as well wait for it to go up again yourself… In the long term, it may not matter much at all. Stocks will eventually rise again! It all depends on how long you want to wait for it to happen. Another option is to wait until it starts to go up again, so you know that people are buying in, and sell then, even though you will be making a loss. If you wait for it to go back into the greens again, you may end up in the same situation again, especially if you bought the stock at a bad time, or a price that it may not reach again anytime soon. When a stock’s made a profit (buying): How far might this stock fall? Can I afford to lose that much, or wait for it to come up again? Again, this is pretty much the same as above, when selling, although, as someone who’s buying in, it offers much better opportunities. Because it is falling, it is likely that people are trying to sell, and you can buy stock quickly. You can buy stock before it starts to rise again, and people don’t want to sell anymore. Of course, this could backfire, and the stock could keep falling. As usual, you have to be aware of what the other players are doing, as well as the stock trends over whatever period you want to invest for. Example This example shows you the status of a random stock example, through a 24 hours (left), and a 6 month (right) chart, and applies a few of the guidelines above, so you can see them in action.
In the short term, this stock will continue to rise for at least a few %, as we can see by the trend, which is going up. People will have made a profit, and may want to sell, allowing you to buy some shares. You’re probably giving them some extra money since they bought the shares, but you could make some more yourself, and still be able to sell them, if you’re lucky. Of course, people could have made a lot of profit by now, and they might soon all want to sell- in which case the stock will fall, and you might have trouble making a profit at all, especially if you bought in late. A good way to see what will happen is to look at the 6 month chart. As we can see, the stock had a steady rise until about two months ago, when it dropped like a stone. Then a lot of people started buying in, and the price rose rapidly. This could be because the original investors, who couldn’t sell before the drop, finally sold their shares to new investors, reducing demand, or because they held onto them, hoping to make their money back, and demand rose because investors assumed the stock had hit bottom, and was going to rise again. The current status of the stock is that it has been rising and falling erratically in the last few days. This means that the 24 hour chart may be unreliable in predicting a trend. It is also much higher than it was a month ago- people who bought in then have made a large profit by now, but people who were hanging in there, and couldn’t sell their stock before the large drop earlier, have almost made their money back. It is possible that they are going to sell soon, causing the stock to fall again, and it is also possible that people think the stock may keep rising, and buy in now, causing the stock to rise further. We can’t tell you what is the ‘right’ or ‘wrong’ thing to do in this situation, but hopefully you can use the information above to help you analyse stock yourself. REMEMBER: Other players are following the same basic guidelines as you, and may well have even read this same tutorial. Because of this, we can’t guarantee that any of the advice above will work at all ‘against’ other players. However, if you play intelligently, and use all of the resources available to you, you can gain a large advantage, and greatly increase your chances of making a profit.
Tips and Tricks You can trade stocks to other players through the trade function. This can be a good way to buy and sell stocks, and often at cheaper or more expensive prices than the actual share worth. You can see what other people are doing, and get some good information and tips, fromthe Stockmarket forum in TC, as well as the stockmarket IRC channel. If you buy in small amounts, you sell in smaller amounts, which will probably be much faster. It also means you can decide to sell some, and keep some, to reduce your risk if you are unsure. Investment ‘groups’, or individuals, investing and withdrawing large amounts at once can influence the stockmarket greatly. It may be wise to join a group, or keep an eye on individual investors. BE ACTIVE. Especially if it’s important how your stock does in the short term, keep an eye on your stocks, if possible every 15 minutes. This way you can keep track of sudden changes in trend, and you might be able to avoid a sudden drop in your stocks, or be able to buy into a quick rise in another stock. Back to Top
Thanks to GoldenGuard  and -Knights- , whose Stock Tutorials in the TC Stockmarket Forums were occasionally referenced during the creation of this Tutorial.