Investing in the stock market means to buy a share, or a small fraction of a business. When that business thrives and makes money, the stocks gain value, and the stock owner gains money as well. If a stock is valuable, at any time, the stock owner may sell their stock to another person hoping to make money. If your stock is currently failing and declining in money, you can try to sell your stock to someone else hoping to make money. Stocks are different from shares because a stock is general term for any company, but a share is a specific investment in a certain company. Some types of investments you can make are bonds, or mutual funds. While buying stocks, aim to invest in a company that hasn’t already had its financial breakthrough, and invest in a smaller company that will eventually be very successful.
Companies can be put into several stock exchanges that vary from all around the world. These stock exchanges can include NASDAQ, The London Stock Exchange Group, NYSE, Japan Exchange Group and many more. Supply and demand is a commonly used business term. It means that the companies have to supply amounts of their product as fast as their customers continue to buy it. Investing in the stock market could allow you to gain money very easily, by virtually doing nothing, but could also make you lose a lot of money very fast.
Stage 3 Reflection
Currently, I am investing in Exxonmobil only. At the beginning of the project, I was investing in ExxonMobil, Tesla Motors, and Whole Foods Market. Whole foods had a negative trend and made a negative impact from the beginning, so I decided to sell it. ExxonMobil was not allowing me to make money, but its trend was not as negative, so I decided to stay with it because I think its value will increase. Tesla also started to decline in percentage so I sold it as well. I think these negative values could have resulted in many things. I think Whole Foods has not had any new product, and does not get as many customers in the winter, so it lost value. Tesla has already had its big breakthrough, and has not had any new updates, so I think it does not have many current customers either. As I continue in the investment, I will try to look for companies that have a special update or event in the near future that could result in an increase in customers, which will hopefully increase my stocks’ value.
Over the course of many months, I experimented with the stock market and learned a lot about the market. The only company that I kept throughout the whole project was ExxonMobil. I did this because this is a very big worldwide corporation that makes a lot of money, so I thought it could help me make some money. It was in the negative percentage for most of the project, but it wasn’t too deep, and I expected it to rise. The worst companies in my project were Netflix and Kellogg’s because they haven’t sold a lot recently due to the cold weather and active shopping season.
In the future projects, I will try to look into the future and predict some of the popular seasonal companies due to weather, holidays, or important events that may trigger unusual activity in some companies. For example, I would expect a lot of people to use twitter right after an important election, and buy some twitter stocks before that. I have learned a lot about the stock market throughout this project. I learned that it is harder than expected to make money through stocks, and it is very risky, especially if you invest in many companies. I have also learned that the percentages of stocks can change very quickly, and you can lose money in one day, so I will remember to be careful with the money I invest.