Three Ideas

1. Why options trading is better than stock trading.
2. When the right time too buy is.
3. How to invest safely.

They say, I say 2

            Options trading is pretty similar to trading stocks, but it has a few major differences that can be positive or negative, depending on the situation. Many stock traders choose not to buy options because they can lead to big losses very quickly, which are unlikely when just trading stocks. They also worry that the prices will go the way they bet against and it will not change its course in the allotted time. Many stock traders are probably misinformed about options, thinking that they need a lot of money to options trading.

            Jeremy Whaley, the author of my article thinks that options trading allows for a much higher return on investment than stock trading would. He compared a scenario with apple stocks where stock trading gave a 6.8% return on investment while options trading gave a 92% return on investment. This really illustrates how options trading can give a much high return on your investment and can lead to you making much more money than you could if you were just trading stocks and not options. Another thing that he mentions in the article is that options trading is less expensive than stock trading and allows people with lower funds to invest in bigger companies such as apple or google. This shows how options trading isn’t only for rich people and how it is actually much cheaper than stocks. In the article he also mentions that while they can have a higher return on investment it is also much easier to lose all of your money very quickly when options trading. After he explains how it is much easier to lose all of the money you invest in one company, he insists that because of this fact it is a much better idea to use only 5% of your total assets as to avoid a huge loss that would be hard to come back from.

            While some fears of stock traders about the options market are true, most of them are false and lead to less people investing in options. There are many reasons why options trading is better than stock trading and some of those reasons are that it can give you a lot higher return on investment than stock trading can. It also reduces the amount of money you lose if you follow the 5% rule and don’t overextend into a single company. The last reason is that it just gives you more options to choose from and the more options the better choices you can make. In conclusion I believe that options trading is safer safe than stock trading because it can give a higher return on investment and it reduces overall risk to your total assets.

Week 6 blog thing

As a group we decided that it would be best to establish a mentor instead of field work as i don't really know what work we would do in the field besides just investing in stocks. The mentor that we decided on is Greg Luerken, We decided on him because john's dad knows him and he is a day trader that has made a bunch of money off of the stock market. It is important that he is a day trader because that is what we want to do for this project. A day trader is someone who is actively looking at many stocks and buys low and sells high in order to maximize profits. This differs from a normal trader because a normal trader will choose a few stocks and will invest in them, then that trader will stay invested in those stocks for a long period of time until they decide it is no longer necessary. The problem with day trading is that the stock market is much more volatile in the short term and it is much easier to end up with less money because it is so volatile.The main thing I took away from him was that it is a better idea to do options trading because it is more versatile and I think it would help us make more money.

week 5 of stuff

We plan on continuing our project and doing it the exact same way we have been doing it. We are continuing this way because we think that our progress has been pretty good and we don't see a reason why we should change it now. Our "hook" is going to be very exciting and my entire group is very excited to do this video to show in front of the class. Our hook is going to be about how the stock market can very much help your future and it can help you to succeed in the future. We won't really need much equipment except for some way to record the video and we can probably just use our phones for that, so we don't really need any extra equipment. I think that overall our team is making good progress on our project and that we will be ready when it becomes time to share our whole project with the entire class at the end of the year.

They Say, I Say

Jacob Seedorff

Period 1

They Say, I Say

            There are many people that would argue that teens shouldn’t invest in the stock market because they will just lose all their money and ended up in a position worse than which they started in. They also say that the stock market is dangerous for anyone and that you should only invest if you are sure that the stock will go up. Many people would disagree with these statements and might even consider them to be blasphemous and crazy. The main problem with the stock market many people are afraid of is the fact that you can’t perfectly predict the stock market, it will change by itself and doesn’t change to an equation or some type of pattern perfectly.

            I disagree with all the people that think the stock market is too risky to invest in and will only result in me losing all of my money. One of the main reasons for this is that people with jobs related to investment (or sometimes unrelated) often get their kids involved in investing so that they will have an easier future and will have more money in the future.” I originally got into the stock market because of my parents who helped me open an investment account and start trading money. Neither of them works I the market, but they knew how important investing is and wanted me to get exposure at a young age,” I think this shows why it is good to start investing in stocks at a young age and why it isn’t always super dangerous. Not all stocks are dangerous to buy, the stocks that are really dangerous to buy are penny stocks, this is because they start low so you will buy more of them and then when they decrease you will lose more money and this can quickly spiral out of control, but you can invest in the more expensive stocks and these will be a lot steadier and can lead to a steady increase in income over many years. “Since Seventh grade the money has increased in value by about 10 percent each year, and each year I’ve re-invested the money in the same stocks as the principal amount.”  This quote shows how if you are smart you can gain money with little to no risk of losing your money if you are willing to play the long game and make slow increases in money.

            The point of this article is to show people that the stock market isn’t that dangerous if you play it correctly and can be used to increase your income each year. It is really important for people to start investing at a very young age so that they can become used to it and they can use it to have more money in the future. I really think that everyone should invest their some of their money into stocks so that they can see what it’s like and see what they can accomplish by investing in stocks. Ultimately everyone should at least look at the stock market and make an educated decision if it is a good idea for them to invest or if they are better off not investing in anything.

Blog 3: Progress

So far we have made quite a bit of progress, I created an e-trade account and I have looked at many penny stocks that we might be able to invest in. The only thing is that I'm not sure how we should decide which penny stock we should invest in, this is due to a lack of experience, the main thing that makes me uneasy is that I don't know if we should invest stocks that appear to be going up or we should go for stocks that look like they have hit rock bottom and will only go up. We will probably split up my money between different stocks to hedge our bets and we will see which one performs the best and the ones that perform best will be the ones that we end up investing most of our assets in. That is all the progress that we have made so far and a little of what we hope to accomplish in the coming weeks.

Checking in

Seedorff:

Interesting idea. How will you record and measure your progress? Have you found any resources that might prove helpful? You may consider getting a subscription to a print or online periodical or see what the library has or is willing to order. Any ideas for who a good mentor could be?

PS There are some interesting podcasts out there about this stuff. I can't attest to their reliability because I know nothing about investing but you might want to check it out. Also, Planet Money might be of interest to you as well.