AuthorZeb Pilcher |
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Week 22/27/2021 ![]() This week I bought a stock called CCIV which was more of a long term investment but it was at a deal I didn't think I could afford to miss out on. CCIV is a blank check company which means it doesn't have an actual business. The stock was priced around 64 dollars before announcing a merger deal and the day before the merger plummeted to around 35 dollars where I bought the stock. This stock has a lot of potential. It merged with lucid motors which is an electric car company. This stock could have significant growth over time but it is also very risky. Most of my available funds besides around 700 dollars went to buying CCIV. I don't have any other stocks that I have on my watchlist to buy besides CCIV but I plan to do more research and look for more stocks to buy once I add more money to my TD ameritrade account. I also want to start investing in stocks that pay dividends. Theses stock pay a wage to the owner and are considered a passive income source that can have much more return than a savings account over time. Like all stocks it does have more risk than a savings account. But risk can be minimized with proper knowledge. A man who worked as a janitor most of his life was able to make 8 million of dividend stocks The other investing strategy I want to try out is called indexing. Indexing is where you buy stocks in the S-P 500. You can buy shares of all these stocks through the ticker SPY which is an index fund. it is priced around 380 dollars right now and is like a brainless way to make money. The S&P 500 are the 500 stocks that have the highest market cap. These stocks are for the most part very safe and very liquid. Buying the general ticker SPY is a safe way to invest in all the major stocks it creates diversification and lower risk for newer investors like myself. There is so much information that I wasn't aware of when I first started this project and I have only read 1 book so far. I would recommend the book A Beginners Guide to the Stock Market by: Kratter to learn some basic knowledge. I would also recommend doing some online research yourself and not trust what one source says. I have learned a lot of things from researching different investing strategies that were not mentioned in the book. This book is also very short and provides brief and basic information so doing some follow up research to go more in depth is also very helpful.
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Week 1: Introduction2/21/2021 Investing is the practice of putting money towards something with the goal to have a positive return. When done right investing can turn your money into more money. The goal for my project is to learn how to invest, start investing, and teach other what I have learned. ![]() I have 4 books that I have planned to read throughout the 12 weeks. This is the first book. It is a short book that covers the basics or investing in the Stock market. This book featured a lot of good information from setting up a stock trading account to what you should look for when buying a stock. The next book I plan to read is a book all about penny stocks. This book teaches you how to make profit off cheaper stocks. Cheaper stocks are the best things I can buy because I can buy more shares increasing my profit. For example if I invested 2000 into apple which is around 130 dollars I would own around 15 shares. If the stock goes up 2 dollars I would only gain 15 dollars. On the other hand if I invested 2000 into a 5 dollar stock I would own 400 shares. If that stock goes up 50 cents I just made 200 dollars. Bigger name stocks that are more expensive are very liquid and a much safer investment over time. Penny stocks a risker investment but can have great rewards. This week I opened an account through TD ameritrade. I have around 2600 in the account to buy and trade stocks with. Next week I plan to research more stocks and start investing. The best stocks I can buy right now are penny stock because I don't have a lot of money to buy big name stocks. A penny stock is any stock that is under 5 dollars. Cheaper stocks are the best things I can buy because I can buy more shares increasing my profit. For example if I invested 2000 into apple which is around 130 dollars I would own around 15 shares. If the stock goes up 2 dollars I would only gain 30 dollars. On the other hand if I invested 2000 into a 5 dollar stock I would own 400 shares. If that stock goes up 50 cents I just made 200 dollars. Bigger name stocks that are more expensive are very liquid and a much safer investment because you can always sell them very quick. Penny stocks are risker investment but can have great rewards. Since I only have 12 weeks to get results I would rather buy a risker stock that could make me more profit than a safer stock that would require time to make the same profit.
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