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Over the past six months our seventh grade had been practicing our math skills in while studying the stock market. We have had a weekly process of checking our stocks and updating our spread sheets to see our gains and losses from the time when we first invested “$10,000” into three or four stocks of our choice. Here is some information about my stock project and the stocks I chose.
The companies that I selected to invest in were Ford Motors, Cisco Systems, Hennes & Mauritz and Sandridge Energy; I chose these companies for many reasons but mainly because they were either recommended or familiar to me. I invested in Cisco Systems because it was recommended, I had never heard of it and was intrigued, and it also had a good price to by at and its graph looked like it was heading up. I invested in Ford Motors fro many similar reasons, it was recommended, it had a good price and out of companies that were recommended I was familiar with it. I invested in Sandridge Energy because it was highly recommended, it was also a company I had never heard of, it had a very low cost to buy at and the graph was heading up at a constant rate. Lastly I invested in Hennes & Mauritz because it is a Swedish company and the Swedish economy is doing well currently, it was recommended, I was familiar with the company and I myself am a consumer of it. As you can see I had many good reasons to invest in the companies I chose.
Although I made money overall there are still many things I would have changed in my investing. Firstly I would have invested more money into Sandridge Energy because I made a large profit off that stock and it was constantly going up. Next I would have not invested in Cisco Systems because I lost quite a bit in it and it almost constantly went down. I would have not invested in Ford Motors because I also lost a lot of money off of it and its prices were always changing going up and down. Even though there are many changes I would have made I am still very pleased with my overall profit.
If I was giving somebody advice before they invested I would tell them to really look into your stocks. One thing to do is to look at the graph for the past year. When you look at the graph you can see the patterns of the stock and where it is predicted to head, which is good for knowing the final profit of your stock. Also looking at the 52-week range is a smart idea because it shows the range and you can see if it is constantly changing or just staying within a small range. Lastly reading the business summary is helpful so that you get to know the company and what type of business it is to see if that industry is currently doing well. Looking into your stocks is very important to do before investing and is a smart decision.
Overall in this project I have learned a lot. Not only about the stock market but also how to use a spread sheet and many more things. I think it is very important to know about the stock market. When you are older or even a couple of years from now and you decide to invest in a stock you will know how to make your decisions and what stocks to invest in.
Article posted May 24, 2011 at 08:41 AM •
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