Alexandra's Stock Market Portfolio

My initial research in the stock market:

A stock market, or stock exchange, is an association of buyers and sellers of companies in general. The buyers are people who have invested in an interest of the company. For example, New York Stock Exchange, NASDAQ, London Stock Exchange, and Euronext (EU) are stock markets. Companies in stock markets have an official abbreviation, called a ticker symbol, that is a “specific publicly traded security”-Investopedia that is shown on an exchange. Depending in which stock market the company is, the ticker symbol will have a different amount of letters in it. For example, the New York Stock exchange companies have up to 3 letters in their symbol (Bank of America - BAC), NASDAQ companies have 4 letters. However, extra letters can be added at the end of a tick symbol can tell investors more about the company. For example, Mutual funds often end in an X, and if the company is going bankrupt a Q will be added to the end of its ticker. A stock is a take of a company and its profit. For example, New York Stock Exchange, NASDAQ, London Stock Exchange, and Euronext (EU) are stock markets. A share, however, is the unit of ownership in the company and equal distribution of any profits made depending on the quantity of the share which is declared in the form of dividends. A dividend is the ration of money the investor gets from its share as the company makes a profit.

Sometimes people do mutual funds. Mutual funds happen when a person doesn’t have enough money to buy his own share so he creates a mutual fund which is a business managed by money managers that accepts deposits from many people to invest in different ways. The law of supply and demand is one of the most basic principles in economics. The law refers to the amount a product or service is requested and its price. If an item is scarce, but the demand for that item is high, then its price will rise. However, if there is a bigger supply for an item than demand for it, then the price will decrease until there is sufficient demand for it. Supply and demand laws are what regulate the prices of stock depending on its demand. There are pros and cons when it comes to the stock market. The stock market is very unstable; the prices can go up and down in seconds, thus the profit made from the share goes up and down too and sometimes, the money lost from the loss can be greater than the profit. Nevertheless, investing in stocks can be an easy way to make money. In addition, there are thousands of different companies within the same stock to chose from. Likewise, investing in stocks can have a little revenue if they don’t have a job and are running low on money.

The stocks I invested in first were: Coca Cola because it was invented in 1886 and has been doing very well. In addition, it is one of the biggest and well-known soft drinks companies in the world. I also invested in Apple because they had the new iPhone 7 coming out so I expected them to do well and earn money in the first month of its sale. Lastly, I invested in Netflix because it is a very popular ans well-known website, I use it regularly and it on average doing well.

My reflection half way through:

The investment of mine that is doing best is Amazon. It is doing well compared to when I bought it because I bought it during a weekday during working hours. Thus, people were working and not shopping on Amazon. The company of mine that is doing the worst compared to when I bought it is Coca Cola. When I bought Coca-Cola, it was really warm so people were drinking more. Now that it is cooler, people need less cool drinks.

Some changes that I have made are: I sold Apple because it was doing terribly and even after the iPhone 7 had been launched for a while, it was still doing badly. In addition, I bought 3 shares of Adidas because it seemed to be progressively doing well, so I wanted to buy shares before it got to its peak.

At this point I might invest in more shares of Amazon because it has been doing very well. Otherwise, I wouldn’t change anything because I have been earning a fair bit of money and my companies have been very constant.

My final reflection on how it went:

The companies that were the best were Netflix and Target. The worst were Nestle (I sold it a week ago), Adidas, and Facebook. I think that Netflix did really well because it is extremely popular these days and I bought it during the week so people were watching less on Netflix. Secondly, I bought target a week before black Friday which means that it would benefit from that. In addition, people were saving their things to go and buy so Target’s price went down. One of my companies that did the worst was Nestle. I think that it was making me lose money was because I bought it on a high so I never made as much money. In the last month, I really wanted to sell it when it was doing a little bit better; however, it always stayed around the -7%s. Also, it is known to be a company that does well so I always thought that it would do better. Adidas hasn’t been doing very well for me; I think it is because people aren’t buying new shoes for the new year anymore. They went back down to their normal sales. Lastly, Facebook hasn’t been doing very well. I think it is because I bought it when it was at a high because students (the majority of people using the website) weren’t working hard in school yet so had time to spend on social medias.

If I were to redo this project, I would reinvest in Target and Netflix, during the week when their sales are lower, because they have been doing really well. I would not invest in Nestle, Facebook, Adidas because those are the companies that have not been doing as well; or I would invest in them in a different period (different time of the week? different month?maybe I could make a bigger profit) depending on when their sales are the lowest. I would possibly reinvest in ING, Deckers Outdoor Corp., and Air France because those companies are doing averagely - never far above or below 0% (there were exceptions (like today)). If I were to redo this project I would buy and sell more companies. I would especially sell companies straight away when I see a pattern of them being low. I would invest in Thor because it has constantly been rising upwards and Time Warner (Warner Bros.) about a month ago because they just had a movie come out. Lastly, I would pick better times day of the week (what is happening this month and next month …) to invest in a companies that have a direct impact on the quantity of their sales.

If I could continue to invest in this project, I would sell companies that aren't doing very well because they are doing really badly and I should not try to get a better price for them because if I take the time in waiting for a better price (waiting for their stocks to go up) then I would have lost more money than if I had just sold them when they were really low. I would also try to buy and sell more companies or shares. I would also buy shares of Thor because it has constantly been rising.

Through out this project, I learned that a company that is usually known to do very well also have bad periods where it makes a lot less money, thus I should not assume that a well-known company will always make me earn money. I also learned that stocks can be doing really well at one moment but then plummet down a few moments later. In addition, I learned that the most well-known companies don’t always do well and sometimes lesser known companies do much better in percentages and are sometimes a lot more stable in their growth. Furthermore, I learned that you should not buy stocks when they are at their peak because they will most likely go down soon, thus making you lose money. Finally, I learned that stocks are a long-term project. You cannot be present in stocks for three months and then sell everything; you should buy a small but growing company that you believe will become big and earn a lot of money. You should keep it until it grows to its full potential and then sell your shares.


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