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Essay About The Stock Market Game

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SMG Self-Reflection
Explain three things you learned and came to understand about the stock market and how it functions.
The Stock Market Game was an informative introduction to economics and the world of investing money. Starting out with $100,000, we were eventually able to make $9055.73 with a +9.06% return, placing 136th out of 852 teams. Through the simulation, I learned that stock statistics of companies do not reveal everything, successful investments require in-depth research and patience, and diversification of stocks is important to keep investments balanced.
As I played the Stock Market Game, I realized that looking solely at the stock’s statistics, such as 52wk range, Earnings Per Share (EPS), and Price-Earnings Ratio (PE), did not accurately predict the current direction of the stock’s price. More often, I used the statistics to determine whether the investment would be good in the long run, as opposed to stocks which might do well …show more content…
Research from reputable sites as well as the companies’ own sites helped me determine whether their future products had a chance for profit. Demand for these products was often seasonal, such as during Valentine’s Day or Easter, causing stocks to increase for a certain period of time then fall back down, as I saw in the history using the stocks’ graphs. Through the simulation, I also realized that consistent monitoring of the stocks was important because the market could take a turn for the worse at any moment. Stock market trading was almost like a job, though with odd hours and great uncertainty at times. Selling stock when I did not know for certain whether the stock would rise or drop the next day was one of the more difficult decisions I had to make during this experience. Selling stock was not the only difficult past; buying stock was just as

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