Over the past couple of weeks, i’ve been challenged to investin stocks, hoping to make a profit. Holidays were coming up, so i decided toinvest in some stocks that i thought made a lot of money during the holidays. Iinvested my money into several stocks including Walmart, Party City, Nike,Netflix, and Amazon. Going into this, i didn’t really know how to purchasestocks, or what stocks are even the best but from the help of my teacher, iknew that it wasn’t a good idea to invest in a lot of stocks because that wouldgive me a greater chance to lose money, putting me at greater risk. I also knewit was a good idea to invest in multiple shares of one company so that’sexactly what i did.When choosing stocks, it’s very important toto observe what time of year it is, and choose stocks that you will see boomingaround that time. I decided to invest into four shares of walmart because blackfriday was coming up, and a lot of people do their black friday shopping there.
I also invested in 1 share of Amazon because, during the holidays people arealways trying to get the better deals out there and Amazon is one of the placesto do so. Since the new year is coming up, i decided to invest in 50 shares ofParty City because i figured everybody is going to be throwing parties aroundthis time and 4 shares of Nike because i thought everybody would like a newpair of shoes to show up at the party with. I also figured this was the time ofyear everybody is staying in andenjoying time with their family, watching Netflix so i decided to invest in 8shares. Each of these stocks i chose, did do well during this time of year, butnot great.
I feel like my stocks would have been better if i invested in lessstocks and more shares of them. I had a lot of stocks, and not enough shares ofeach. I also didn’t do much research on the companies i invested in, some ofthe companies i invested in, such as Netflix had a scam going on around thetime, and sales weren’t at it’s greatest peak, in fact they were losing money.If i were to ever invest in stocks again, i would definitely take more time todo research on the companies and how they’re doing at the time, because i couldhave saved a lot more money.
Investing in stocks is not the only way to setup for retirement, in fact there are many other ways such as an IRA or 401(k).Investing in stocks is actually not the best way to set up for retirementbecause stock markets crash, companies fail, and it puts your money at risk.Saving your money is the best way to save up for retirement, unless you’rebetter than me and know how to invest in stocks. If i were to do this in thefuture, i would take larger companies, who have been around a while, andcontinue to make profit year round, and invest in many shares of them.