Stage 1 - Research
The Stock Market has become very popular in the last couple of decades, and has expanded immensely. Because of it’s growth it may sometimes be confusing to understand it and it’s different sections such as investment, Bonds and stocks, and what it means to own a stock. Well to begin with the definition of a stock is a share in the ownership of a company. An example of this could be if I decide to buy a stock from apple, that means that the stock I just bought is a part of the company that now belongs to you. So if you think about it differently If you bought all the stocks of the company then you would be the official owner of that company, but generally companies don't put their entire company on stocks so you can’t own the whole company. If you own a stock that means that you put money into the company to own that stock [prices vary depending the company] If the company has a good month or year etc, then the company will grant you part of the company's earnings [because you own part of the company]. But if things go wrong you can lose all the money that you left in the company and all you’ve earned. But their are different kinds of stocks and some are riskier than others such as bonds or common stocks. Bonds are always a safe option in the stock market because no one can take your money away. With a bond you are simply lending a certain amount of money to a company for a certain amount of years and then when your contract is over [ the amount of years/time] you get your money back plus profit. If a company goes bankrupt and they still have your bond they cannot take your money they must give it all back to you. But unlike bonds there are more riskier choices in the stock market such as common stocks. Common stocks are like the name says common and when people talk about stocks they are generally talking about these. Unlike bonds common stocks don't guarantee anything. If the company goes bankrupt and you still have the stock and your money inside the company can take it away, leaving you with less than you started. Common stocks also don't have a fixed dividend, meaning that they won’t necessarily pay you [or take away] the same amount of money every time. But common stocks/shares also has benefits like you get one vote per share to elect the board members of the company [10 shares = 10 votes]. In common stocks unlike in bonds you also own the part of the company that you bought and no can take it away from you unless you wish it to be or you sell it. And the last type of general stock is called a preferred stock. You can think of a prefered stock as an option in between common shares and bonds. In a prefered stock you have some ownership over the part of the company though you generally don't have a say in anything that happens [depends the company]. But unlike common shares the investors of prefered shares often get a fixed dividend for as long as they have those stocks. This ofcourse can be an advantage as well as a disadvantage depending on how good or bad the company's profit is going. Now you can have a good idea of what the stock market is like, some people live off the money they get from there stocks others do it for a little extra money and others don’t do it at all. But it’s always good to know a little just in case.
Stage 3 Reflection
Since the beginning of my project the stock has been doing the best in my opinion is Netflix, especially now that its up by 30%. And my worst stock that I’ve kept - because there was several bad stocks but they didn't stick around- was Cisco. But now that problem has been solves because just recently I sold Cisco.
I myself dont know any reasons because I dont even really know a lot of these companies but I do know that Yahoo has never been the 1st choice its always been google and bing so I think it makes sense that Yahoo is doing so poorly.
One of the first stocks I sold was Yahoo, which to be honest looking back on it I don’t know why I ever chose Yahoo it’s never been the most popular company, but after some time when I realized it wasn't going to get better I decided to sell it. After this I figured I should get some new stocks but I wanted to find ones that didnt really have any competition so I went to google and searched ‘company monopolies’, with the websites that came up to this search there were three constants, Pay Pal Monsanto and Luxittoca. Because they were all constant I decided to buy some stocks from each one, and to my mis content two of the three stocks went negative right after i bouught them which were monsanto and luxxitoca, but Pay Pal was doing fairly well it was 10% positive, but the sad part was I had only bought two shares therefore I decided to buy more of Pay Pal. After 3 days Luxxitoca went into the positives so I’ve decided to keep it but sadly Monsanto has never recovered so I’m considering selling it.
I would like to get rid of Monsanto to begin with and I would also like to do a little more research on how the stocks positive and negative percentage contribute to my over all percentage, I have questions like… If I get rid if all my stocks but one that’s +30% will my complete average automatically become +30%?
I think my best stock was definitely Netflix, even though it wasn’t doing so well in the beginning it ended up going up to 40% at one point and never going into the negatives after that point. It was the reason I made into the top 3 for some weeks and Netflix was definitely a reason I was always in the positives. Another stock that’s been excellent is CECO (Career education corporation) even though I bought it only two or three weeks ago It shot up to 30% almost right away, the only problem with this was that the stock actually cost less than $10 so though it looked like I was earning a lot of money… I wasn't. I think Yahoo was definitely the worst. I truly dont understand why I decided to buy Yahoo but it didn't serve me well at all. It was always down which I should have expected considering how good Google and other competition like Bing have been doing, but as soon that I realized it wasn't getting any better which took a while I got rid of it.
I’m not sure why Netflix has been doing so well but I think it’s because they’re giving people something they want which is to be able to watch movies at there house at a minimum prive, and I think that they’ll do even better since they have a new update that allows you to download movies and tv shows on your phone. As for Yahoo it’s just a simple fact that they havent been doing well for a long time, so once again I haven’t got a clue why I would ever choose it.
I think if I could turn Back time to the very beginning and I knew all that I know I would buy at least 50 shares of Netflix and this would be all I would buy, because I would know I could be dependendt on it, if I really wanted to I would also invest in CECO though I would have to invest a lot more than I have for it to make a difference and I have no idea how it was doing towards the beginning of the project, I think I would also invest in Luxxitoca because even though I just recently go it it’s been doing fairly well and I think I could benefit from that. There is also Sketchers but I honestly dont know if I would invest in them, I’m pretty sure that the begining of this project sketchers wasnt doing very well but at the same time If I bought it when it was doing badly when it went up to what it is now it would be much more for me. So in the end if I could I think I would go straught for all the stocks I have now.
I think something that I’ve definitely learned from the stock market its that research makes a big difference because I lost a lot of money by investing in random stalks that looked good to me, and I could have been in a much better position if I hadn’t.