Stage 1 : explaining the stock market
The stock market works by allowing people to trade, buy and sell shares in companies. These companies are public and are from all sectors such as electronics, food and drink, agriculture, energy, pharmaceuticals.Shares are units of investment (money) that make up the stock of the company. If you own shares then you own part of the company also.
Often the company will pay money to the shareholders from its profits once a year, this is an annual dividend. The price of a company's product depends on the supply and demand of it, this then determines the value of the stocks/shares.The pros and cons of trading on the stock market are that you can either gain or lose large amounts of money because it is sometimes unpredictable.
Stage 2: Initial Investments
Stage 3 : reflexion
In the stock market rankings, Amazon and Apple are the companies that are doing the best. By comparison, Target and Coca-Cola are the companies that are doing the worst. This could be because Apple recently released their new iPhone 7, and therefore people can see that they are growing as a company and they are bringing out new products which make their company worth more on the stock market. Amazon has always been a successful company and it’s getting closer to Christmas so maybe people are more interested in this shipping company due to the higher demand of gifts being bought online around this period. Target allowed transgender people to access their choice of restrooms and changing rooms, this is seen as controversial by many people, such as some regular customers or people who might want to be a Target customer, and therefore it could have led to an uncertainty in the market capability of Target. Pepsi is catching up with Coca-Cola and at the moment it is not clear what Coca-cola is doing to combat this increasing popularity of Pepsi. I haven’t bought anything more because everything I bought has been successful since the beginning. I only sold Netflix because it was going down a lot and was dragging me to the 40th place in the ranking. I don’t want to change anything about my current portfolio for the moment because I am in a good place and I think that everything is going well.
Stage 4 : final reflection of my portfolio
The best company that I bought was Target, especially for the month of November. They revealed Black Friday deals, Stores opened at 6 am, they unveiled holiday savings with 10 days of deals, they donated $400,000 to communities affected by Hurricane Matthieu. And another good companythat increased in value was Amazon because more sellers went on amazon ready for the busy holiday season, they offered up to 35 days of Black Friday shopping, AmazonFresh expanded to new cities with a monthly membership plan, they curated holiday gift guides and finally they they announced the winner of the Third Indie Literary prize for spanish-language. Of course they did plenty of other things that increased and sometimes decreased their stock market, but they were less important. The company that did the worst and that I bought on the 18th of October is Deutsche Bank. It is due to the share drop again as European Banks got pummeled.
If I had to redo this project, I think I would have invested in more interesting stocks at the beginning of the project because I hadn't invested in a lot and now I regret because the more I could have invested in, the more I could have had the chance to be in profit in the rankings and in the charts.
This project taught me a lot and I am really happy that I've completed it because I knew nothing about investing before we started. I didn't knew how stressful it could be to follow the rankings each day and I really liked this project, even though I wasn't always in the positives, I tried my best to climb higher in the rankings.