Stock Portfolio Contest In the beginning of the semester, each individual student was given $50,000 of “monopoly” money. Students had to use all $50,000 and invest in different stocks; however, they must keep checking at their stock values like real stockbrokers. Stockbrokers has to consistently keep checking their stock values because their values could reach turning points. Such turning points can be result into low cost of stock where you can buy many stocks at a cheap price. Although stock prices can be cheap, stock prices can go into major values where it’s more expensive to buy. There is one rule that all stockholders usually follow: Buy low and sell high. This saying indicates that you buy stock at a very low price and sell the same
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stocks and let’s say I brought 250 stocks for $79 each so I spend $19750 worth of stocks. Now time has advanced for one month, now my stocks are worth $94 each so I sell my stock at that price. The difference of when I brought my stocks and when I sell my stock is $15; however, since I have 250 stocks now I multiple 15 by 250 to equal $3750. Now I gain an extra $3750 dollars without doing anything just waiting for my stocks to go at a higher price. This is called stock return; however, this method doesn’t always work because each situation is different. In some cases, you actually lose money compared to gaining money and the reason is that your stock prices might have gone even cheaper than before. In this case, stockbrokers tend to sell their stocks if it tends to get cheaper each day, to regain at least a fraction of what they spend before it lowers more. There’s a lot of risks that the stock market is capable of and you have to be quick to sell or buy because if not then you will …show more content…
Although I’ve decide to purchase more stock of Nintendo, I’ve made a foolish mistake to purchase more stock at an extremely high price. On Feb 2, I brought 188 more stocks at the price of $147 each then following day, I checked my stocks only to see them drop drastically. There were times that I wanted to sell my stocks of Nintendo because they were being too unpredictable, but I decided to wait and sell how time will change my stocks. During March, my stocks were raising to the point where I sell all my stocks at a high price. Thinking to myself, I thought I would sell my stocks at that point, but I’ve waited to see if it got higher. In April, fortune smiles upon me as my stocks rose almost to $160 in April 19 and I decided to sell my stocks at that time. Now I subtract $147 from $158.25 to gain a big positive difference of $11.25. Finally multiply that amount by 243 stocks to earn an extra $2733.75. Of course you have to multiply all the final price by the number of stocks to see the total amount. As the table below shows, my total after selling my stocks equals to $56,787.25 meaning I’ve gain an extra $6,787.25. I’ve gain an 13.5745% increase from my original amount of
stocks and let’s say I brought 250 stocks for $79 each so I spend $19750 worth of stocks. Now time has advanced for one month, now my stocks are worth $94 each so I sell my stock at that price. The difference of when I brought my stocks and when I sell my stock is $15; however, since I have 250 stocks now I multiple 15 by 250 to equal $3750. Now I gain an extra $3750 dollars without doing anything just waiting for my stocks to go at a higher price. This is called stock return; however, this method doesn’t always work because each situation is different. In some cases, you actually lose money compared to gaining money and the reason is that your stock prices might have gone even cheaper than before. In this case, stockbrokers tend to sell their stocks if it tends to get cheaper each day, to regain at least a fraction of what they spend before it lowers more. There’s a lot of risks that the stock market is capable of and you have to be quick to sell or buy because if not then you will …show more content…
Although I’ve decide to purchase more stock of Nintendo, I’ve made a foolish mistake to purchase more stock at an extremely high price. On Feb 2, I brought 188 more stocks at the price of $147 each then following day, I checked my stocks only to see them drop drastically. There were times that I wanted to sell my stocks of Nintendo because they were being too unpredictable, but I decided to wait and sell how time will change my stocks. During March, my stocks were raising to the point where I sell all my stocks at a high price. Thinking to myself, I thought I would sell my stocks at that point, but I’ve waited to see if it got higher. In April, fortune smiles upon me as my stocks rose almost to $160 in April 19 and I decided to sell my stocks at that time. Now I subtract $147 from $158.25 to gain a big positive difference of $11.25. Finally multiply that amount by 243 stocks to earn an extra $2733.75. Of course you have to multiply all the final price by the number of stocks to see the total amount. As the table below shows, my total after selling my stocks equals to $56,787.25 meaning I’ve gain an extra $6,787.25. I’ve gain an 13.5745% increase from my original amount of