Friday, October 25, 2013

My Two Favorite Stocks

Right one my two favorite stocks are Apple, AAPL, and Wells Fargo, WFC.  The reason these stocks are my favorite is basically consistency.  Both fluctuate very little, in long term, and , although they may be potentially slow, they do increase in price if you allow time.  My Apple stock is a trade and I will sell it, hopefully soon, based on how their new product is reviewed.  My Wells Fargo stock is an investment of it's very positive history and eventual increase.  It doesn't offer a dividend and, in my case, I didn't see this as a problem because I won't own the stock long enough to collect it.

BlackJack

The minute I saw that Capty was passing out poker chips and cards, I was psyched.  I love poker and blackjack.  I wasn't really sure how it was supposed to apply to what we are working on right now but I didn't care.  As we played though, I really got a feel for what was going on and the whole goal for the game was and how it applied to the stock market.  The emotional part of the game was very similar to buying and selling stocks.  It seemed that those who allowed their emotions to govern them were the ones who kept losing.  Those who were in tune with the whole process were those who were looking at facts and statistics and using that to make decisions instead of simple emotion.  The stock market is the exact same way. Whenever I make a rash decision based on emotions rather than on facts and statistics, I very rarely see the outcome be in my favor.  On the contrary, when I look at facts and statistics, and make decisions based on those, often, I am much more satisfied with the end result.

Thursday, October 17, 2013

Trades and Investments are different in many ways.  Both have their ups and downs.  For instance a trade is usually not going to be affected by dividends because many stocks that are traded aren't held long enough for dividends to affect them.  Obviously this is somewhat of a disadvantage.  The positive thing about trades is that it is often easier to make money faster than an investment because you don't hold the stock for as long as an investment.  The perks of an investment is you hold the stock for long enough that you are going to get a dividend if your stock offers one.  On top of that, investments are bought with the future in mind.  They aren't intended to bed bought and sold soon after. When someone buys an investment, they are intending to ride it out until a certain time when they will sell it for, potentially, a much higher price.  This also allows for the stock to potentially split which could cause the price of the stocks to skyrocket depending on the initial worth.  Although trading may earn you more money upfront, investing is meant to earn you significantly more money, most of the time, just in the long run.

Tuesday, October 15, 2013

As I walked into the room the first things that I noticed were that the lights were off, there were sounds of people screaming and yelling, and the temperature was much higher than that of the hall.  I then saw that candy was thrown all over the floor so, as everyone else did, I automatically started picking up as much as I could and making my own stockpile.  When we stopped and prices were written on the board for the different types of candy, I realized that each one of these pieces of candy represented a different stock in a company.  Then it became clear to me that we were enacting what it may be like to be an active member inside the stock exchange.  I noticed that, even though it may have not been near as hectic as the real stock exchange, ours was still very confusing and I felt as though I had to constantly be on high alert of everything that was going on.  I was constantly forced to make decisions that could make or break my overall worth and also be aware of decisions that others were making in case I happened to get in on a secret piece of information.  After our enactment was over, I realized that many can simply not compete with those that start off with more.  On top of this, I also noticed that those who made the right decisions and mostly were conservative, came out on top.  At the beginning I didn't understand the true importance of stockpiling as much candy as possible which I took to exemplify buying stocks while their value is low, in hopes that the prices will increase.  For those who seized the opportunity, the end results seemed to be better.  This goes to show that those who are aware of their surroundings are more likely to seize opportunities as they come to them than those who aren't as aware.