After playing the “Stock Market Game”, I have learned a lot of things from trading stocks. This is the first time I have played the “Stock Market Game”, it is actually an amazing game. It is not only the game but also the necessary lesson of economic market. I realized that this game is very hard to play if people do not have enough sensitive as well as the observation and the judgment skill. When I played this game, I was confused about how to increase my money up.
The people who playing stocks must take risks for investment, the more money people invest, the more occasion they win money. This first time playing this game, I lost pretty much money because I just bought 50 shares at once time then I realized 50 shares couldn’t making lots
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But I think if you watch the stock going up or down everyday you can good at this game and make a lot of money. During the game, I did not spend time to find how stocks work and how to play it well. When I played I just bought when the stock had a lower price and sell when it got high price. My friends also helped me for watching the stock, and advice me which one is good and have potential to increase money up. The stocks can let the player to win a lot of money as well as lose everything for just few minutes or even few seconds. When I played, I have to observe and examine the situation of the stocks, consider if I would get money or not when I sell any stock or it had better to wait until the stock went up to sell. Nevertheless, in case of the stock’s price decreased many time than the price I had bought, I would sell it immediately to stop losing more …show more content…
That was the first time that I did not lose money. I sold it at the right time with the price was high enough to win money. The trades that made me losing a lot of money was another 100 shares of ANF. The stock go down quickly so I couldn’t sell it at the proper time, I lost total $2,889.00 in that game. After that, I bought other stocks with the hope to increase my money up. I did it, but the interest was not as much as I wanted. Some stocks made me lose a lot of money because of the decreasing non stop of the stocks. I tried to keep it and hoped it would be gone up in the next days but it did not happen and that was the reason why I lose much and much of money. In the last game, I also lost money. In my stocks there were no fast moves either up or down. They did not report earnings that were perceived as being either positive or negative for the
Before we invested, we decided to pick two types of companies to invest in. We would choose companies that had expensive stock but steady increasing prices and we would choose smaller companies that had cheaper stock but whom had a chance for potential huge price increases. If the smaller companies’ stock went down the bigger companies’ steadily increasing stock would even it out, but if the smaller companies’ stock price rose greatly, like we predict, we could sell and make a good profit. We found a big name company that had reliable stock prices pretty quick, but finding a small company whose stock price could rise was hard. We
The goal is to teach you to wear the glasses of a professional trader who sees the difference between low and high-probability trades. With these new glasses, your trading account gradually reflects the consequences of making high-probability trades. With more money in your trading account, you can buy more contracts. You experience the law of compounding, and your account grows exponentially.
Anyone can become a day trader. But in order to be a successful day trader, you must have the proper access and characteristics. For example, knowledge and experi...
Despite having been around for over one hundred years, people began developing poor judgement when it came to investments in the late nineteenth century. Out of desire to participate in the ever growing popularity of the stock market, people took out large amounts of stock on an installment plan, with money they did not have. As Harry J. Carmen and Harold C. Syrett described in their publication of A History of the American People, as investing in stocks increased in popularity, “the exchange became more of a betting ring.” (Document 5) and “security prices were forced up by competitive bidding rather than by any fundamental improvement in American (business).” (Document 5). The stock market became a game, a challenge that was not fully thought through. This lead to certain businesses getting ahead of others, not due to their success, but because of the uneducated support they were getting from those who knew nothing about the businesses they were investing in, trying to get rich quick. Since those who took out stocks on installment could not pay them off, the stock market eventually collapsed all together. On October 29, 1929, the New York Times published an issue with the headline “STOCK PRICES SLUMP $14,000,000,000 IN NATION-WIDE STAMPEDE TO UNLOAD” (Document 3). Leading up to the ultimate crash, people began to see it coming and at the last second
My stepfather never considered that he might need to work on his state of mind and the psychology that underlies trading. He simply believed that studying chart patterns without any written notes or JPEG pictures was sufficient. He believed that the entire game of trading was learning how to read the charts, and therefore he had little use for techniques that would neutralize his fear of loss. He needed to create aha moments to turn on the light switch in his dark room.
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
The efficient market, as one of the pillars of neoclassical finance, asserts that financial markets are efficient on information. The efficient market hypothesis suggests that there is no trading system based on currently available information that could be expected to generate excess risk-adjusted returns consistently as this information is already reflected in current prices. However, EMH has been the most controversial subject of research in the fields of financial economics during the last 40 years. “Behavioural finance, however, is now seriously challenging this premise by arguing that people are clearly not rational” (Ross, (2002)). Behavioral finance uses facts from psychology and other human sciences in order to explain human investors’ behaviors.
We analyzed the market for two weeks to determine when the equity market would turn from a bearish to bullish market. Without a change in the market and a declining bond price, we decided to invest in equities according to our investment strategy, which brought us into the second phase of our portfolio. Therefore, at the beginning of February we bought shares in Sirius, Microsoft, Neon, Washington Mutual, and Nike. As assumed, the equity market continued to plummet decreasing the value of all our stocks except for our Gold Corporation stock.
“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It's your window into a very large world,” Ron Chernow once said. The stock market is undoubtedly an incredibly important economic feature, one that our modern world depends on. Indeed, the stock market is so integral to our life today that it can serve as a valuable tool where financial literacy is concerned. Two of the most important financial lessons that the stock market teaches are financial literacy terminology as well as a historical understanding of stock market institutions. The Stock Market Game simulation serves to teach these lessons in a secure environment, and
Chapter 11 closes our discussion with several insights into the efficient market theory. There have been many attempts to discredit the random walk theory, but none of the theories hold against empirical evidence. Any pattern that is noticed by investors will disappear as investors try to exploit it and the valuation methods of growth rate are far too difficult to predict. As we said before the random walk concludes that no patterns exist in the market, pricing is accurate and all information available is already incorporated into the stock price. Therefore the market is efficient. Even if errors do occur in short-run pricing, they will correct themselves in the long run. The random walk suggest that short-term prices cannot be predicted and to buy stocks for the long run. Malkiel concludes the best way to consistently be profitable is to buy and hold a broad based market index fund. As the market rises so will the investors returns since historically the market continues to rise as a whole.
I became an enthusiast of finance ever since I was at high school. At the political economy class, my teacher asked us: if you have a million RMB, how would you use it? She then introduced us the concept of investment, and I was intrigued specifically by the stock. For the latter two years of my high school, I have been reading books and articles regarding the stock market in the U.S. and in China. As one of the outstanding students ranked top 1% in College Entrance Exam in Hainan Province, China, I was accepted by the City University of Hong Kong with a full scholarship. With the strong interest in finance, I chose quantitative finance and risk management as my major.
According to the united stat patent office: the idea of Monopoly game has been originated by Elizabeth J. Magie back in 1903 when she registered similar board game which was called the landlord's game (Orbanes, 2006). After that, different kinds of board games has been created.
May 21, 2017 Reflective Essay Alex Skiles The purpose for this reflective essay is to inform you the reader as much as I can. On the stock market game I had in Econ in spring of 2017. One of my goals for the stock market game was to invest in at least two companies.
Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down.
In the modern world, financial markets play a significant role, with huge volumes of everyday dealings. They form part of contemporary economic lifestyle and determine the level of success of many people. Humans have always been uncertain of what the future holds and thus, tried to forecast it. The forecast of course cannot omit the likelihood of “easy money” by forecasting the prices of equity markets in the future.