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Thursday, October 18, 2012

How do we invest?

To answer a question that I am sure many of the blog readers are wondering, we are writing this post to answer the question, "how do we invest?" Since we are limited on funds and how we can spend our money, we use a simulator to buy, sell, and see how are stocks progress. We use the website www.investopedia.com to simulate all the investments and manage a group game to see how all of our members do. With this website we have adjusted the settings so that each member of the Investment Club has up to $50,000 in cash money to start and their goal is to make as much money as they can. At each meeting, which take place two or  three times a month, we discuss all of the companies that we consequently talk about on the blog and either encourage or discourage our members to/from investing in those companies. From there, members can decide whether they will follow our advice, go a completely different route, or simply invest in stocks that they think have a promising future. This website, conveniently, also has a dictionary for many finance, investing, and stock market related terms.
We do need to give a sign of caution to our readers, that our stocks are not always completely accurate. As we are students, we do not have time throughout the day from 8 AM to 4 PM when the stock market is open to consistently and regularly check if we need to buy or sell stocks. Rather, we buy stocks while creating our PowerPoint and outlines for each meeting, and after we have discussed the company, we will sell stocks to make sure that we profit from each trade. On the other hand, whenever we have time during the day to check the markets and invest, we attempt to grab the opportunity and update our portfolio as we can.

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