Our Philosophy
As a group we have decided that we
are going to make short-term investments, by buying cheap stocks and making a
profit as soon as possible. Once we see that a certain stock has made a profit,
we plan to sell it in order to avoid a risky drop in the stock at a later time.
Our main plan of action is to “keep it safe”, and weigh the chances as much as
possible to keep the statistics in our favor. We also do not plan on buying
stocks that show a steady decrease in value because there is always a chance that
they may continue to fall instead of increase in price. On the other hand, if
we notice that a stock is increasing, we will invest in a certain number of those
stocks. Ultimately, after a rise in the stock price, there will be an inevitable
fall in price, which we can take advantage of by selling it at that moment, and
making the largest net profit from that exchange. By the end of all the
transactions after the 4 weeks, we intend to make a profit of $20,000, that we
can use for our college tuition to further our education.
Most of our stocks are going to
involve manufacturers that released new types of technology because stocks of
that nature generally have a trend to increase since people are always
investing money into the newest, evolved form of technology. Nonetheless, we
will also be on a continuous lookout for other types of companies that have
showed to be increasing in value. The Boston Company is one of the largest
global investment management firms and it sees growing opportunities in
security, big data, cloud based computing systems and social media technology.
This company serves as an example as to why technology is sought after and
expected to do well in the stock market, as we have predicted.
We have already purchased stocks
of several companies, adhering to our strategic plan of finding innovative
technologies. One such company that is making technological strides is
AT&T, because it has showed continuous expansion and coverage throughout
the nation. Recently, it has introduced the HTC One® mobile phone with many new
features, it has released an offer to several states such as Oklahoma and
Arkansas to offer up to one year of free U-Verse high speed internet to small
businesses, and it has expanded its 4G LTE network to new regions as part of
its Project Velocity IP. It is one of the most well-known phone companies, so
people are going to be willing to spend a portion of their money into a company
that they think will do well, and has previously supplied the public with
innovative technology. In addition to phones and data coverage, investments in
biotechnology are safe to make as well. More specifically, the biotechnological
company Amgen, delivers many health related products such as dialysis
equipment, which finds high use in the medical field. Furthermore, it is
working on extensive research to release new drugs which are expected to have
many health benefits. Another company showing promising increases in stock
value is Cisco Systems which manufactures and sells networking equipment. It has
just released Cisco Aironet 2700 Series Access Point which is expected to help
Local Area Network (LAN) to support mobile devices, apps, and data existent in
high-density consumer areas.
Although we see many possible gains,
one problem that our team noted right away was that the stocks, in The Stock
Market Game, are only processed the day after a purchase is made. This may
prove to be a major problem as there is no way of knowing for sure the prices of
stocks the following day. If a stock is bought today and doing well, indicating
an increase in value, the next day it might completely diminish in value and
render huge losses. As a result, the game does not allow us to track the minute
by minute progress of the stock immediately after its purchase. This adds much
more risk, and decreases the amount of strategy that we have agreed upon.
Another problem that can arise is that we might not earn enough of a profit due
to the fact that we are “playing it safe". However, that can almost guarantee
that we don’t lose the money that we were initially provided with.
Despite all the challenges and the
unpredictability of the stock market, we look forward to making investments in
different companies and earning a profit.
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