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Discussion Galactic Stock Exchange | 1st Week Feedback & Discussion

Alright so.

The Galactic Stock Exchange has been running full steam for about a week now. As we near Week 2, I'm interested in hearing feedback or just any thoughts/ideas for changes, additions, or other sorts of suggestions you have for it.

It's been interesting seeing the different interactions the marketplace has had. The engagement has obviously been very high which I'm pleased to see, but of course there are issues that can affect the long-term stability of the market (I'm looking at you folks pumping and dumping HKDI -- you're not slick :O ) so hopefully some solutions to that would be nice.

Also -- if out of the goodness of your heart and Life Day spirit you want to make a contribution to the market so that we don't go under, any and all donations are accepted.
 

Aktur Seii

ᴀ sʜᴀᴅᴏᴡ ɪɴ ᴛʜᴇ ᴅᴀʀᴋ
I have feedback and suggestions.

So for this testing period, I was working on two methods of stock investment:

1. Small incremental investments (10-20 shares per day), which were intended to build up a share slowly over several days

2. Pump and dump (50+ per day), which were intended to max share gain before closing and then gauge reactions and sell if needed

Results were clear (and obvious), the second method was the most rewarding. And while pump/dump could be a viable strategy in stock markets, if you're willing to run the risk, ultimately it is not conducive to a pretend market with less variation or outlying dependencies on market trends, as RL markets have.

So, this got me thinking, since the approach needs to include potential financial gains (for players) but also a means to self-propagate and not crash immediately (for the stock market). I've pondered the following three (3) ideas, and would like to present them as possible methods to include throughout this testing phase, to see if they might work or provide some OOC stability.

aktur_banner2.png

IDEA ONE.

All market traders require a license to trade. Joining the first time, to trade in stocks, requires a single one-time payment of 10,000 UCs (this is 10 posts in a thread, it's not unobtainable or high). This allows a player to trade freely in the stock market, and gives the market itself a 100% profit amount to add to offsetting trade, without being obscenely priced for a license.

Then, every month, a license fee is applied. And every license holder pays that monthly fee of - for example - 2,000 UCs, which again becomes a 100% profit amount from each player to inject into the market account (assuming the NPC account idea is maintained).

There would be a cost to the player, yes, but the amounts (as suggested, which are open to change if adopted?) are a handful of posts as an offset to the player - and that's not much to ask, to help maintain a mechanic being driven aside from site staff or board systems.

It's manual; it's a player working for the entertainment of players, and he needs help to keep it going.

aktur_banner2.png

IDEA TWO.

Share caps.

Since this is reflective of a stock market, but is limited by finite resources (UCs), it has more limitations. What I'm suggesting is share caps, which are limits on shares available in a single day of trade, based on a factor of company decision.

What does this mean, how would it work?

So, every month, a company purchases a share cap for daily trade. And based on the cap picked, a company can either have less shares available to invest in, or more. And during a stock market day, if those shares are taken - by player investors - then no more are available for the rest of that trade day.

Here is a simple proposal for illustration:

PLANPRICESHARE CAP
Bronze Investment1,000 UC100
Silver Tier Investment5,000 UC500
Gold Tier Investment10,000 UC1,000

So, let's say 4 companies did this, and each picked their plans for the month:

COMPANYPLANPRICESHARE CAP
Company 1Bronze1,000 UC /month100
Company 2Bronze1,000 UC /month100
Company 3Silver5,000 UC /month500
Company 4Gold10,000 UC /month1,000

So, this means that companies 1 and 2 have a max daily investment potential of 100 shares. One those shares are claimed for the day, no more market changes can happen directly to those shares (outside of fluctuations in the market itself - see Idea 3).

Company 3 and 4 have larger investment potential, and the aim is to attract bigger investors, to provide a longer term investment method over weeks or months, to keep prices going up.

Of course, sudden share dumps can still happen - but, to avoid the ol' pump and dump method, share caps still apply. This means investors have to work over a period of time to bring share stocks back up to desired value, which in turn prolongs the shares game, and rewards longer term investment - while avoiding crashing the market within a 2 day period!

Plus, those monthly plan costs for companies go directly into the stock market (and its NPC) to help maintain it.

aktur_banner2.png

IDEA THREE.

Random market events. This one is mainly to give a sense of insecurity and risk, and would likely happen in the background of the stock market, from the NPC account maintaining it. A simple explanation is as follows:

1. Randomly (dice roll?) once a week, something will happen that can either cause positive or negative fluctuation to shares

2. A second roll is done, to determine positive or negative changes on the previously revealed day

3. The event happens, and has a set scale it reads from, to simulate how it helps - or hinders - the market (the below are examples):

Positive AInvestments soar, +2% to all shares
Positive BA random investor has bought big to <a randomly picked company>, share value increases +5% to all shares for that company
Negative ABig business investors have dumped shares, due to war strain, -10% all shares in the market
Negative BA change in Government (due to a dominion) has left <a randomly picked company> on that planet reeling from economic instability, -5% all shares

4. The event is carried out, the stock market is updated, and people see how things went - good or bad.

The above is purely a example, it can be completely changed or altered, but the main goal is to introduce some events that can help or hinder and replicate a more impactful stock market volatility - as this whole thing shouldn't be all winning, all the time, shares are risks.

aktur_banner2.png

So those are my suggestions/ideas so far, I'll continue to ponder more as testing continues.

Very open to discussing any of the above, or fine-tuning, or whatever else.
 
I second the above. A purely player-driven market is great but one is simply judging the potential likelihood of somebody else withdrawing all their stock before you manage to; with timezones a factor, anybody asleep during the open-session of the market is gonna find themselves out of the running!

The inclusion of random or IC driven stock changes would add the missing element-IC RP.

Otherwise, I love it!
 

Aktur Seii

ᴀ sʜᴀᴅᴏᴡ ɪɴ ᴛʜᴇ ᴅᴀʀᴋ
I have another idea to suggest:

Variable Brokerage Fees.

The idea is simple, you treat brokerage fees like tax brackets (or at least how we have them over here). The higher the amount of shares sold, the higher the brokerage fee. This is mainly to encourage lessened pump and dump methods, because the cost (to your brokerage fee) increases dramatically the higher up the share numbers go.

Here's an example:

BROKERAGE RANGEBROKERAGE FEE
0 - 20,000 UCs10%
20,001 - 30,000 UCs15%
30,001 - 40,000 UCs20%
40,001 - 50,000 UCs25%
50,001+ UCs30%

Or something like so.

Essentially, this suggestion is an attempt to decrease risk of the stock market being cleaned out by multiple large investments suddenly, while also giving players options for fee brackets they want to sell within; this allows for more control over investment amounts they get, as well as not hitting smaller investors too harshly with the same fee bat.

Plus, it can encourage that long game with investment potential, and reward discretion and sell control.

Again, per all my suggestions, the amounts/numbers/percentages are all up for changing or altering.
 
So, as someone who's quite enjoying the stock market let's go through some things.

What do we want from the GSE? If I were to make a list I'd say

  • Give us something interesting to do with Uck
  • Ensure the GSE is accessible to less affluent (new) users and doesn't become a complete country club
  • Mimic at a very basic level, the real stock market (probably the NYSE)
We can break down the second one as have a general upward trend, with some volatility. If we want to mimic real strategies we probably want want diverse portfolios to have less risk and centralized portfolio's to have higher risk and quicker potential gain. As far as I see there are three main issues here.

  • Prices only change daily
  • No stochastic/non-player component to stock prices
  • Gain/loss independent of share price.
These three things incentivize pump and dumps of the lowest stock tickers, usually HKDI or HAYC.

I'll walk through an example. I have 5K I want to throw at the market. I know stock goes up the more I buy, so I buy the cheapest stock I can, so I can get as many shares as I can. Tomorrow a whale sells all there shares of my stock. Market's open for twelve hours and doesn't update until EOD, so I can sell for a gain or hold and have less Uck tomorrow. I sell for profit, stock goes down, and I can buy more for less tomorrow. Rinse, repeat.

The first bullet really isn't solvable if we want to cater to international posters in different time zones, at least imo. The second and third points however, I think we can do some damage on.

Essentially we want to give incentive for two things. 1, owning multiple stocks at a time, and 2, holding when you know others are selling. I think there are a clue steps we can take without reducing the little guys ability to get in.

FIrst split stock movement into three or four components.

  1. General Market Trend (Everyone goes up 3%)
  2. Sector Trend (All medical stocks go down 2%)
  3. Market Cap trends( big stocks go up/down a little, small stocks go up/down a lot)
  4. Stock Trend (PC's buy 300 total HKDI, trend up)
The first and second create hold incentives, the second and third create stock diversification so there is actual meaning in buying HKDI instead of ROBL, and the last let's the player have agency over their success or failure. The last should also have a component relating to size of the company (ala Aktur Seii Aktur Seii 's market cap idea). The second isn't really necessary with the number of tickets we have, but could be interesting long term.

i will also take time to say things I don't think we should do, and why I don't think we should do them.

  • Increased brokerage fees: putting the fee at x% means I'll only sell if it gains x+1%, and will probably encourage the entire market to pump/dump a few stocks.
  • Increased buy in/tiered investing: Makes things more difficult for new users/old users, and will reduce overall activity.
 
EXC-HNG3 EXC-HNG3 Alban Roble Alban Roble

Hey, idea to mitigate pump and dumps

In real life if a company stock goes too low a company may say "we believe in our company and our product, so we're going to buyback stock and profit later." In that vein we could put a lower bound (random or not) that says "Okay, we had 500 sales of HKDI, but the company bought back stocks" so the actual price only drops x%(say, 20). Would make big gains much more buy driven than sell driven and hopefully help the market long term.
 

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