Pros And Cons Of The Stock Game

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What I have learned from the stock investing game: Before playing the stock market game, I honestly had no idea about how the stock market work. I, however, have learned so much about the process of the stock market. It was an advantage to learn how to buy and sell stocks without losing any thing, that will indeed enable me to invest in the real stock market without any concern. I learned that there is no certainty about wining or losing; however, there are many factors that we should consider before buying or selling stocks. One of theses factors is follow the daily news about the firm that you are willing to buy its stocks. Following the history of the firm transactions is also a significant factor that must be considered. The level of stability
Moreover, it is not difficult to learn how and where to invest, it is actually easier than doing many other things in the business field. The time value of money is an important factor to consider when thinking about investing in the market stock. Investing in the market stock can generate profit in the long and short run instead of keeping the same amount without investing or just looking for interest which is limited. The following are pros and cons of stock market investing:

The Pros
• Highest returns. Stocks have given the one of the highest historical returns among the various asset classes over the long term.
• Income from dividends. Dividends that are distributed by many companies give the opportunity to stock investors to maximize their profit
• Stocks are easily diversified. Investing in the stock market is not limited in one country, you can actually buy different stocks in different countries which minimize the risk of investing.
• Stocks are highly liquid. Most stocks trading on a major exchange can be easily bought and sold.
The Cons
• Volatile in the short term. Stock prices are not stable, they can be easily increased or decreased based on many factors.
• If you pick the wrong stock, you risk losing the value of your investment. Similarly, firms that perform poorly cannot afford to keep the same amount of
The first strategy that I have learned is that I should buy when the market is down in order to make a huge profit in the future. The idea is that in parts of the year a recession might happen and affect most of the stocks in the market; therefore, I buy in these times and wait for the market to be enhanced to sell them. The second strategy is that I read the weekly, monthly and annual reports and news about any firm I want to buy its stocks. That indeed tells me whether the position of the firm in the market as well as its performance. For example, in the past few months, the CEO of UBER announced some racist statements against females, that led the stocks of company to decrease significantly. That showed me that UBER stocks are risky, so I did not buy them. In addition, the aforementioned strategies are some out of many that I have learned during the market stock

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