Stage 1: Initial Investments
The stock market has many terms. The difference between a stock and a share is that a stock is something you own and a share is something you have from the company. A dividend is what a company pays to the people that own shares of their company. There are a lot of markets but some of the major ones are NASDAQ, New York Stock Exchange, Hong Kong stock exchange and more. There are also ticker symbols which are symbols that companie have in the stock market. For example, apple’s ticker symbol is AAPL. A mutual fund is a group or collection of investments. This means that multiple people will put money towards a group of investments. Supply is how much a company will give out in shares and demand is how much people want to own from the company. It affects the stock market because more demand means that companies will have to sell more shares. There are many pros and cons of investing in the stock market. One pro is that you can invest a little bit of money into it and turn that into a bigger amount. But the same thing but then reverse can also happen. You can lose a lot of money if you are not smart in investing. I would probably say only invest about 20 euros into the stock market if im a beginner and new to trading and investing. I could maybe turn that 20 into 50. But there are of course people who invest thousands of euros into the stock market.
Stage 2 - Portfolio
Stage 3 - Reflection
A lot of companies that I initially invested in weren’t doing very well so i sold them. However, one company that I invested in which was Nvidia, had been doing very well throughout the course of these past few weeks. Xerox was also doing fairly well. Companies like Electronic Arts and Twitter weren’t holding up which is why I sold them. I know that I invested in EA because they released their newest video game, Battlefield 1. They did go up in sales but dropped fairly quickly. Throughout the project I made a few changes to my portfolio. After my initial investments, I bought stocks from Nvidia and Shell. I plan on keeping companies until the end of the project since right now they don’t look like they will be dropping any time soon. I noticed how they were starting to do well which is why I invested in them in the first place. From this point on I would like to invest in more companies since right now I only have about 3 or 4 at any given moment. Having more companies might make me more money and could put me higher up the rankings list.
Stage 4: Final Reflection
Some of my companies that I initially invested in weren’t doing very well so i sold them. However, one company that I invested in after a few weeks which was Nvidia, had been doing very well throughout the course of these past few weeks. Xerox was also doing pretty goof. Companies like Electronic Arts and Twitter weren’t holding up which is why I sold them. I decided to invest in EA since they had a few new products coming out. If I were to ever redo this project, knowing what I know, I would do different initial investments since most of the companies I invested in initially didn’t do very well in the long run. Perhaps doing more research would help to find better companies. I would also do a better job of keeping track of the progress. What I mean with that is having a more consistent schedule of keeping track. I didn’t do many updates until the last few weeks before the project was due. I might also have invested in a more varied list of stocks since most of the companies I invested in were technology or technology related companies. I’m not sure whether that affected my overall progress in a positive or negative way.
Since that start of this project, I have learned a lot about the stock market. Before we even started I already had a bit of knowledge on trading and selling stocks and what the market was all about from video games, T.V., and school However, I learned a lot of new terms and my knowledge of trading and selling expanded. For example I didn’t know what a dividend was, and I didn’t know that there were so many markets around the world. I knew about NASDAQ and New York Stock Exchange, but not about all the markets in Europe and Asia. I hope that one day in the future, I will invest in some companies in the real stock market and perhaps even make some money.