Hello, my name is Sam and I’m going to teach you guys the importance of investing. What risks are involved and whats the profits that you could inherit. About a year ago I was in my economics class when I was truly introduced into the stock market (Senior Year). My teacher made us play a stock market game with “virtual money”, and divided us into equal teams. We both had $50,000 to play with and only 2 – 3 stocks to pick. To this very day I don’t remember what stocks I picked, but at the end of the school year my team was the winner with $100,000+ more in gains. I was in shock.
How did “I” win the market game? Easy I research the stocks that interest me the most. At the time it was computer and technology companies. This was fun to research since I was a big fan of technologies, so I focused all my attention on those types of stocks. As for you, do the same by finding you best market. It could be from clothing lines to energy corporations. Just find your niches, then do research on the companies. So while doing I came across many; in not hundreds of virtual stock market games online. This is where I became the master at such young age and actually taught myself. I signed up for one of the virtual market games which I quickly learned and began trading with the stocks I research. I kept a daily tab on news information about those stocks and spotted where I needed to sell out.
So here are the steps you need to follow.
1. Get a paper and pencil out, or notepad and start writing what your favorite categories are.
2. Start looking for Companies in your categories. Start with a minimum of 5
3. Look for a virtual stock market trading game. I prefer Wall Street Survivor.
4. Bookmark Wall Street Journal, and keep tabs on your stocks. ( News + Press Releases)
5. Keep, trading your account about 3 – 5 times a week to keep up. Watch your profit and losses.
6. Every Saturday keep a record of how much you gained or loss.
Now once you’ve master the stock market or feel confident, go ahead and open a trading account with any brokerage. I prefer Scottrade since their commission on trades are only $7 flat. Also start your account with only $100, and only use money you can afford to loose. The more confident you feel, the more money you’ll be able to risk. Never jump the gun.
Manage your profits! I’ve seen young people my age blow away their profits and don’t think about the future. Upon gaining your profits don’t use them to party or brag. Instead save them for later use, or on something much more valuable; your first house, car..etc.
You bought XYZ @ $3.50 a Share, you bought 500 shares.
2 Weeks later XYZ went @ 19.50 a Share and you sold.
You gained $7000-$8000, Save it or re-invest at least 35% of it.
Thanks For Your Time.