After continuing research on my topic, I decided to narrow down my question to “How can I benefit from stocks?” I decided to make this my question because the research I’m doing in this class may help me some day when I decide to put money into stocks. I made the title of this blog post “Pay Attention” because that’s exactly what I need to do during my research to get the most out of it.
I found an online article through ProQuest titled “Factors that Make the Stock Market Crazy” that helps break down the confusion of the stock market. “Some market movers are obvious, while others creep up on us unseen” (Ken Little, Factors that Make the Stock Market Crazy”). I think this quote from the author is useful because it gives a good description of the market in one sentence. Obvious market movers include inflation, interest rates, earnings, oil / energy prices, war, crime, etc. The problem with market movers is that they are so unpredictable; If there is any sudden change in a market mover, that could result in a significant bump up or down in the market. “If you have had your eye on a stock, but felt it was a little over-priced, one of these market events might just take enough wind out of its price to put it in your buy range” (Little). What the author means is if I want to buy an oil stock, but the price is too high, I can wait for the stock’s price to eventually drop. Buy while it’s low, and then sell high when the stock reaches its potential again.
In another article, “Stock Market Millionaire,” by Simon Thompson, he compares the stock market to a game show:
What’s the easier way to make a million? Knowing the stock market so well that you can profit from proven phenomena? Or entering TV quiz Who Wants to be a Millionaire to profit from your general knowledge? Both could be highly lucrative if you know all the right answers.
I liked this quote from Thompson because it makes a valid point about investing in stocks: it’s not easy to make a lot of profit, but it is possible if you know what you’re doing. The same point can be made about a game show for money. It all depends on the investor’s expertise and a little bit of luck, which proves there is a level of discourse community in this genre.