Virtual Stock Exchange Experience
Question One
The positions that exceeded my expectations were with companies Yahoo and Apple. The reason why they exceeded my expectation is that these are not trading organizations. Apple for instance sells phones, computers, and tablets. Additionally, the company offers android services. Yahoo exceeded my expectations since people know about products by the organization.
Question Two
The positions that underperformed for me were those taken by NASDAQ, NYSE, and S&P 500 Dow. The factors that led to the underperformance of the companies were because of a lack of investors, investing in the wrong time, and low trading stocks. Therefore, the companies experienced losses since there were no sales.
Question Three
There are several key things learned from the Virtual Stock Exchange experience. The first lesson is to be careful with the stocks I buy. Caution is required here since I can buy stocks that do not sell well in NYSE or if they do, it is a low price. This is one of the reasons why some companies make losses and vice versa. The second lesson is conducting more research before investing in an organization. Research is essential since it will help me know the demographic profile of the company. In this case, I will be knowledgeable about the products sold by the organization, their stock value, and decide on investing.
The third lesson is how important it is to have an in-depth knowledge of market patterns and the behavior of stocks (fluctuations). Such knowledge helps me know the best time to trade and make profits. The fourth lesson is knowledge about the functioning mode(s) of online brokers. Also, I learned some technical terms and tools for instance the meaning of calls, spreads, and put. More importantly, I learned how these technical terms influence my trading options. All in all, the Virtual Stock Exchange provides a trading platform where beginners know the basics.
Question Four
I learned a lot experimenting with the multiple portfolio allocations and diversification styles as well as the investment strategies. This information is important since the investment strategies are used by companies like S & P 500, NASDAQ, and NYSE. Participating in the Virtual Stock Exchange program will help me avoid risks in trading since the experience creates a sense of markets and how they operate. In this case, I learned not to trade in stocks without having a rational approach to the choice of stocks. I have not used virtual money before and the experience changed that since there is an actual cash flow and I could spend as much as I want.
Question Five
There are several ways that the Virtual Stock Experience will influence personal investing in the future. Even though the experience was simulated, the effects were real and thus gained familiarity with trading basics and the intricate details associated with investing in a share market. As mentioned earlier, I used virtual money thus was not afraid to lose it thus gaining much-needed knowledge on buying low and selling high. In the future, I will be careful and only trade when safe. The experience provided me with the opportunity to test different strategies and investment options to know the best that works for me. Therefore, I know the best strategies to implement in the future when investing since I have better control of the stocks. More importantly, I learned the importance of research before investing. In the future, I will be careful on the goods bought for investing since I now know that not all products sell. This will help me avoid losses during investing. Also, companies where I chose to invest need to be properly investigated and the profits of investing with them.