I'm playing the stock market game for economics. How do I know which stocks I should buy?

Question

Any suggestions? What factors about the companies contribute to how well their stocks are performing. I'm kind of new to the whole idea.

Answer 1

Typically you want to look at earning growth, financial reports, competitors, and all sorts of other things.
If this is just for the semester, then a lot of luck is really involved for short-term investing. So I would pick something that already has some upward momentum in order to try an achieve some short-term gains.

If you are allowed to buy ETFs - Exchange Traded Funds - (I don't see why you wouldn't be), then I'll recommend:
>>> EEM - iShares MSCI Emerg Mkts Index
>>> IXG - iShares S&P Global Financials
Instead of just one, they are a basket of stocks specific to a particular area of the market. It reduces the risk of buying just one stock. These have performed well and will probably keep going up in the short-term.

If you need stocks, then I'll recommend:
>>> AEOS - American Eagle Outfitters Inc.
>>> ANF - Abercrombie & Fitch Co.
I'm sure you've seen them both in the mall. They are both doing quite well, Christmas spending season is coming, and consumer confidence has increased recently. Also, retailers' sales keep beating forecasts.

That is just my two cents. I am not an expert, but I know more than the average bear.
Since this is just a game for fun (and not graded I assume), pick companies you know because it will be more enjoyable to follow their stock prices.

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Answer 2

There are many ways to go about it and different strategies you can use, so there really is no one right way. You need to evaluate a company's current and future financial stability and growth. Here are some simple questions to ask for starters:

How profitable are they?
How quickly are they growing those profits, revenues, market share and other things?
How good is their marketing? Do they have a useful product/service that many people could use?

The book "One Up on Wall Street" by Peter Lynch is a great one for beginners to the stock market. It's easy to read with lots of interesting stories and humor.

Answer 3

Generally you should look at financial reports for a company. The higher the profits, the better it does. Plus if the government plays around with interest rates that's a factor.(higher interest rates, stocks fall and lower interest rate, stock jump.) And oil/gas price affect it too, especially car corps. and big chain stores

Answer 4

the way to buy stock is to loook @ well known companies who normally have decent to high stock, but whose stock is currently low

Answer 5

sell APPLE NOW it doesnt pass up in any respect, purchase MIPS and ARMH, they make processors and are the two going up a CRAP LOAD interior the quick run. you will in all probability make the main on your classification.

Answer 6

well if u have a boy friend tell him what games does he like to play.

Answer 7

easy ........ do what the professional does ........ but you need specialized tools first ........... have you got a coin ............. some dices ......... now you are ready to begin