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Journal entries from Matthew and Helen
"If you're not making it in the market, then you're not making it anywhere!" To make it somewhere, especially in the stock market, one needs a wide range of knowledge in finding and interpreting information.
The market to me is like the horse track, the more you know about the horse, jockey, the track, and not to mention the odds, the higher your chances are of a winning ticket. With that in mind, I knew I would have to research inside and out before investing in a company. Many points should be considered before a person invests any amount of money, however, I limit myself to only 5 points:
- Does the company have products or services with sufficient market potential to make increases in sales for several years?
- Does it have the management to develop products that will increase total sales potentials when the growth potentials of current product lines have been exploited?
- How good are the company's cost analysis and accounting control?
- Does the management talk freely to investors about its affairs when things are going well but "clams up" when troubles occur?
- Will the growth of the company require sufficient equity financing so that the large number of shares outstanding will largely cancel the existing stockholders' benefit from this anticipated growth?"
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The stock market game is a very good experience. It helps you see what it's all about and how you can lose and gain money in a short period of time. (Today one of my stocks went up over $1 since it opened this morning and then fell .$.50 in 15 minutes. I'm glad I had only invested cyber dollars.) I believe the stock market is going to crash very soon, because it's had such wild ratings recently. I don't believe I would be able to have real stock because it would be too much to keep up with. Maybe I'd invest in mutual funds where someone else keeps up with the 15 minute ups and downs. All and all, it is a good way to make money if you know what you are doing.
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