Before the Stock Market Project, I did not know a lot about buying and selling stocks and how the market works. Throughout this project I learned about how difficult the stock market can be and got a glimpse of how it works. The first thing I took away from this assignment is you really need to know what you are doing before you start buying stock. On a daily basis, stock prices are rising and falling constantly and it takes a tremendous amount of time and effort to follow the market and make financially strategic decisions. Before purchasing any stock, you should research the company and find out more information in order to get an idea of how the company is doing. When my partner and I first started the project, we made a rookie mistake.
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One of the things I knew before coming into this project was, you want to buy low and sell high. All three of these companies have been so successful over the past decade that their stocks have just skyrocketed and it only leaves so much room for improvement. The key is to find a low-key company that is building the next greatest innovation and has a low stock price with lots of potential to grow. So when that product or service is created the company’s stock will explode and increase the profitability due to the price margin from when you bought the stock until you sell it. This almost sounds like a fantasy in the stock market because this rarely ever happens and when it does its usually because of some insider trading that was leaked from within the company. The final thing I learned from this project was some company’s look like they are going to be a great investment but end up being over valued. For example, I was going to buy some stock in GoPro because it is an up in coming company that seems to be doing very well. As I started to do a little research on the company and looked at comments from other investors, I realized that the company was over valued, which means the current price is not supported by the earnings …show more content…
This company was one of the companies we pulled off of the list on Forbes at the very beginning. We had no idea what the company did or who they even were. We just went by what the website said since it stated they had potential to rise in the upcoming year. Also since we had such a large balance to begin with, we went over bored on how many shares we should purchase in which we ended up buying 2000 shares. We had no idea on whether the stock would go up or down, we took a shot on it and it ended up losing us money. Maybe if we had researched the company before purchasing so much stock, we might have been able to realize that the company was not a smart investment, or at the very least purchased less stock than we did. I think most of the companies we got from the website were not very successful for us, though they did not kill us either. Even though Frontier Communications lost us the most money, I would say we made an overall mistake trusting a website rather than doing research for ourselves. Also we tended to not look at our trading portfolio more than once a week, so we couldn’t really follow how the prices were
One of the things I knew before coming into this project was, you want to buy low and sell high. All three of these companies have been so successful over the past decade that their stocks have just skyrocketed and it only leaves so much room for improvement. The key is to find a low-key company that is building the next greatest innovation and has a low stock price with lots of potential to grow. So when that product or service is created the company’s stock will explode and increase the profitability due to the price margin from when you bought the stock until you sell it. This almost sounds like a fantasy in the stock market because this rarely ever happens and when it does its usually because of some insider trading that was leaked from within the company. The final thing I learned from this project was some company’s look like they are going to be a great investment but end up being over valued. For example, I was going to buy some stock in GoPro because it is an up in coming company that seems to be doing very well. As I started to do a little research on the company and looked at comments from other investors, I realized that the company was over valued, which means the current price is not supported by the earnings …show more content…
This company was one of the companies we pulled off of the list on Forbes at the very beginning. We had no idea what the company did or who they even were. We just went by what the website said since it stated they had potential to rise in the upcoming year. Also since we had such a large balance to begin with, we went over bored on how many shares we should purchase in which we ended up buying 2000 shares. We had no idea on whether the stock would go up or down, we took a shot on it and it ended up losing us money. Maybe if we had researched the company before purchasing so much stock, we might have been able to realize that the company was not a smart investment, or at the very least purchased less stock than we did. I think most of the companies we got from the website were not very successful for us, though they did not kill us either. Even though Frontier Communications lost us the most money, I would say we made an overall mistake trusting a website rather than doing research for ourselves. Also we tended to not look at our trading portfolio more than once a week, so we couldn’t really follow how the prices were