Stock Market Simulation Reflection

In order to find out more about stocks and learning how human activity impacts the economy, we traded stocks in a stock market simulation game. During the first few days, I purchased stocks from two companies BABA (Alibaba) and COST (Costco). As I was not experienced and was a little afraid to be a risk-taker and buy stocks from more companies, I decided to wait a bit longer. However, I talked with my friends and discussed about good companies that were worth investing and decided to buy more stocks from different companies including AMZN (Amazon), P (Pandora), GHC (Graham Holdings Co.), WMT (Walmart), AAPL (Apple) and WFM (Whole Foods Market). The media also impacted my decisions greatly. During the few weeks, I would always run up to my mother or father to check if there was news about stocks in the newspaper. Also, I researched about companies and observed the trend line of the stocks for each company carefully in order to make a good decision. The stock watch list helped as well.

Along the way, I made sales and additional purchases as the value or price of some stocks were rapidly dropping and some stocks were clearly rising. For example, the stocks of the company Alibaba was continuously dropping rapidly from November 13th to November 19th. The price of the stock dropped from 119.3 to 115.1. 115.1 to 114.25. 114. 25 to 110.81 and 110.81 to 108.82. In 6 days, the price of the stock dropped 10.48 dollars. On November 18th, I hurriedly deleted 100/170 of my stocks to prevent more loss. On the other hand, the stock price of Graham Holdings Co. rose rapidly from December 2nd to December 9th. The price of the stock rose from 894.89 to 907.61, 907.61 to 928. 928 to 941.1. 941.1 to 940.14 and 940.14 to 945.36. In one week, the stock rose 50.47 dollars (894.89~945.36). Therefore, I purchased 1 more stock on December 13th.

During the few weeks, I learnt how risk-taking trading stocks were and experiencing buying and selling stocks was very interesting for me.

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