Stock Project Essay
Silver and Finance! How are these stocks doing?
In math class we have a stock project going. I invested in Pan American Silver Corporation, Silver Wheaten Corporation and MBIA Inc.. In class we made a sheet that showed the stocks progress over a period of time. The stocks gains and losses. Spikes and falls of those stocks. I have things that I used when choosing my stocks and things for next time.
I selected my companies based on two things. I did the first two I chose, Pan American Silver Corporation and Silver Wheaten Corporation, because of their graphs. The graphs of both these companies showed that the prices were going up fairly steadily and most likely would do so for sometime. In the case of these I was correct. Pan America Silver Corporation I had a profit. But in Silver Wheaten Corporation I profited. On the final stock, MBIA Inc., I was told by someone who I trusted. After I saw the graph I decided to invest in it. That stock had a loss. So on most of my stocks, as the graphs showed me, I earned money. At the end I did gain money. Based on my results looking at a stocks graph is a very good thing to do and also not to listen to people even if you trust them, to think for yourself.
If I were to keep my stocks I would but maybe make a few changes. In my losing stock, which is MBIA Inc, I would keep it until I got even or I got a little money in the stock. If I lost money in a stock like that for a long time I would try to sell it before I lost a lot of money. I would still keep a losing stock because it would probably would have to go up an even gain a penny eventually. It also could be a seasonal stock like a surf shop or a garden store. Then if it was winter at the time I would wait until it was summer. If it was a pretty much even stock, like my other two, then I would keep it or sell depending on if it was seasonal. If it was a bit below I would wait to get even. If it should go up soon I would wait and see. If it was an amazing stock then I would sell it immediately because it might be on a spike and go down immediately. But if it was on a constant spike upward I would wait and see how it plays out. That is what I would do with my different stocks.
I have three pieces of advice to give to someone who is going to invest in the stock market. The first is not to sell a losing stock. If you have a hundred shares of a shock that has lost a dollar then it would be very bad to sell it because you would end up losing a hundred dollars and while one dollar might not be much a hundred is a lot. The next is to sell a great stock because you don't know how long it could be on that spike, which you can see on the graph, and when it might go down. Spikes only last a certain amount of time. And they go down very quickly. Or if your stock is rising steadily then you should buy more of it unless it is a spike or if it is losing do not buy more of the stock because it would make you lose even more more money. If it is making a lot of money over a period of a month and has not dropped then more shares would help you gain even more money. However, if this stock was, let's say, a garden store and we are approaching fall then it would be better to sell the stocks before it goes down. It all depends on the stock, the graph and the prices. And if you follow this paragraph then you will (probably) earn money in the stock market.
This project taught me a lot about stocks and how the stock market works. I learned how to buy and sell stocks and when and why to do so. I chose my stocks, Pan American Silver Corporation, Silver Wheaten Corporation and MBIA Inc. for random reasons but I now know better reasons to choose them. I think that if I were to do this project again I know that I would do better and I would understand even more than I do know. This essay would probably end up being three pages instead of two. I think this is very informative and it is something I would like to have looked at before starting my project.
Article posted May 23, 2011 at 01:02 PM •
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