The Stock Market is nothing but a gamble.
You never know what the outcome is going to be but you always hope for the best. To learn more about how the Stock Market works we played a game. To start the game I purchased 13 stocks of the Starbucks Corporation (a coffee shop), 1 stock of Chipotle Mexican Grill Inc(a mexican restaurant)., 10 stocks of General Motors Company (a car company), 2 stocks out of Amazon (an online website that sells a little bit of everything and ships right to your door), 5 stocks from the McDonald’s Corporation (fast food company), 10 stocks of Target Inc (retail store).
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, 5 stocks of Goldman Sachs Group Inc. (leading global investment bank), 25 stocks of Nike Inc. (a shoe/retail company), and 2 stocks from Google (a web browser).While choosing the stocks I wanted I did not use any particular method in the stocks I chose. I just tried to find the most common stock names I could and well hope for the best.
I also tried to buy more of the common known stocks (more expensive ones) to try and raise my profits. While owning the stocks I started to realize that selling the stocks I had just bought was not a smart move. Instead of making money I was losing money very rapidly putting in a huge debt hole. I just had to be patient with my stocks in order to see some time of profit emerge from the huge hole I put myself into too. I also noticed that some of the smaller companies I bought into were not helping me make money instead they were taking money away from the little money I was making from my other bigger stocks.
Yet again I just needed to be patient with my stocks because sooner than I thought I was making a lot more money than I expected from all my stocks. Knowing what I know now about stocks, I would stick to the bigger stocks because they produce the most money in the long run.Also instead of buying so many stocks stick 4-5 big stocks and purchase more shares of those stocks. I would not be as quick to sell my stocks because it does not benefit me to be impatient with my stocks and by selling stocks I am also losing valuable money in the end. Also do not waste money on buying on 1 share of stock. If you plan on buying into a stock buy big to get big money in return. If you do not trust the business will prosper do not waste money on buying a share of stock for that company/business.Purchasing stocks and bonds is not the only way for you to save for retirement.
Although purchasing shares from a stock is a great way to save up for retirement there are no guarantees that you will get money from the stock or if the stock market is going to crash.Other ways to save for retirement includes: 401k, Real Estate Investment, Tax-Deferred Annuities, and other amazing ways to save for up retirement. After completing the stock market game I learned that I could buy into the stock market and make money.
The stock market will have its ups and downs but will eventually bounce back stronger. Investing into stocks as a young adult now will only better my living as I get older, especially when I decide to retire. This game showed me not to rush things because you will just end up messing up everything good you had going because you were being impatient.
Also the smaller the better, the more stocks you purchase the less likely you are to make a lot of money. So go big or go home when purchasing stocks and so you are not wasting money on unnessaccary stocks.