Philosophy, Process, and Portfolio
The stock market is an interesting and a potentially effective place to make money towards your future. Public corporations sells these stocks because they need money to expand and experiment. In return, you get a tiny percentage of the corporation. The price you own fluctuates according to how well the company is doing. If you think the company will do well in the future, you might buy the stock and keep it long-term. If the company is being exposed for utilizing child labor to make its products, you might short the stock in hopes of the share price going down. By analyzing each stock’s statistical data as well as the company’s reputation right now, you can make an educated choice whether or not you think
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When I first stumble across a stock, my first step to figuring out which stocks to buy is to first, look at the historical chart of how much the stock was worth in the past. If the stock had a consistent rising price with no down spikes in its history, I usually invest in it long-term. This is because I believe it is low-risk, high-reward. There is not much risk that the company’s prices will plunge, and there is a big chance that the prices will continually rise and give you a profit. On the other hand, stocks that fluctuates a lot with many down spikes scare me. There would be nothing worse than losing $2000 on one stock and is capable of shifting my place on the leaderboard down dramatically. This is why I don’t typically invest in unstable stocks. My second step is to glance at the top stories about the company. There are 3 stories there, and if 2 or more out of the 3 is negative, I usually won’t buy the stock. If one is negative, I will skim through that negative article and determine if it proves an accurate point. If not, I will invest in that stock. My final step in this process is to listen to my gut feeling. Even if I don’t like how the company is doing, I’ll listen to my gut feeling and buy the stock. I do this when I am very familiar with the company and would like to buy the stock