Stock Up on Cash!
Big tips that could save you millions
This year in math class, we did a project on the stock market. Each of us was given 10,000 imaginary dollars to "invest" in 3 different stocks of our choice. I chose Coca-Cola (KO), Starbucks (SBUX), and Disney (DIS). I invested in KO because I had bought a real stock of it earlier that year, and it had risen from about $40 to $55 in a matter of a couple months, so it would probably keep rising. I bought SBUX because many people love their coffee and it is a popular restaurant chain (especially in Seattle, where I was born), and because their history was reliable. And I chose DIS because it was a steady stock that was unlikely to lose any money, judging by their history.
By the 24th week of our stock market project, many of our stocks took turns that would have caused us to pick differently. I would not invest in KO, because almost the exact time that i bought it it lost me over $1,000. I would change it to a Panera stock because that was a great stock that rose about $25. I would also buy more SBUX, because that made me over $1,000. And i would change DIS to a penny stock because if i had 2 other good stocks, then even if i had a bad penny stock I would still be making money--and with a good penny stock i could make over $3,000 (total money).
I may not be an expert, but I can give you some good advice on investing in stocks. First of all, you should definitely research the stocks you want to invest in, and ask other people with experience. Also, only invest in companies that you're familiar with because those are most likely more popular, and because you have a better indication of stock quality with companies you know. You should research the historical prices of your stocks, because that will show whether your stocks will keep gaining or losing money. And lastly, you should check in on your stocks often. If you don't, then a stock could take an unexpected turn, and you could lose a lot of money that you could have saved by selling it. But in the end, a penny saved is more than a penny earned—hopefully.