Over the past couple of weeks, i’ve been challenged to invest
in stocks, hoping to make a profit. Holidays were coming up, so i decided to
invest in some stocks that i thought made a lot of money during the holidays. I
invested my money into several stocks including Walmart, Party City, Nike,
Netflix, and Amazon. Going into this, i didn’t really know how to purchase
stocks, or what stocks are even the best but from the help of my teacher, i
knew that it wasn’t a good idea to invest in a lot of stocks because that would
give me a greater chance to lose money, putting me at greater risk. I also knew
it was a good idea to invest in multiple shares of one company so that’s
exactly what i did.
When choosing stocks, it’s very important to
to observe what time of year it is, and choose stocks that you will see booming
around that time. I decided to invest into four shares of walmart because black
friday 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 are
always trying to get the better deals out there and Amazon is one of the places
to do so. Since the new year is coming up, i decided to invest in 50 shares of
Party City because i figured everybody is going to be throwing parties around
this time and 4 shares of Nike because i thought everybody would like a new
pair of shoes to show up at the party with. I also figured this was the time of
year everybody is staying in and
enjoying time with their family, watching Netflix so i decided to invest in 8
shares. Each of these stocks i chose, did do well during this time of year, but
not great. I feel like my stocks would have been better if i invested in less
stocks and more shares of them. I had a lot of stocks, and not enough shares of
each. I also didn’t do much research on the companies i invested in, some of
the companies i invested in, such as Netflix had a scam going on around the
time, 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 to
do research on the companies and how they’re doing at the time, because i could
have saved a lot more money.
Investing in stocks is not the only way to set
up 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 retirement
because 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’re
better than me and know how to invest in stocks. If i were to do this in the
future, i would take larger companies, who have been around a while, and
continue to make profit year round, and invest in many shares of them.