Stock Market Simulator Assignment Essay

295 WordsMay 5, 20132 Pages
Robin Gill Stock Market Simulator I played the Stock Market Stimulator game about ten different times. I started out with literally no strategy at all to see where beginners luck would take me. In the early games I simply invested all my money in the various companies without tactic and usually came up at $108,000. Eventually, I would see that most of the companies kept a very stable stock value, with the exception of YeeeeeHaw.com. They would take a large increase in stock value in the early weeks, then take a sudden dip back down to where their value began. I could tell where YeeeeeHaw.com had hit their maximum stock value and that is the point where I begun to sell my shares to maximize the profit. I initially did not view the companies profile page, but did so around game four. This better helped my game because I knew which were the stable companies and which had significant variation. Calls increase in value when the underlying security is going up, and they decrease in value when the underlying security declines in price. Puts increase in value when the underlying security is going down and decrease in value when it is going up. There are risks associated with calls and puts. These options are more risky than owning stock because there is a greater chance of losing your investment quickly. The risk increases as these options get closer to their expiration date. If an investor has a great understanding of the call and put options, there can be many rewards. They can provide and increased cost efficiency, they may be less risky than equities, they have the potential to deliver higher percentage returns and they offer a number of strategic

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