Learned This Week
This week I have learned a few other things to help me further understand what stocks are all about. I have learned first hand how beneficial it can be to put limit orders on stocks so that you are able to maximize profit made on a stock, especially with stocks that fluctuate quite frequently. I have also learned to be patient with stocks, most specifically stocks that have I have already purchased. An example of this is the following, about two weeks ago, I bought a few shares from Fit Bit, and I was losing a couple of thousands from having invested in this stock. At the start of this course, I most likely would have panicked and decided to sell the stock, even with all the money lost. But instead, I decided to be patient with this stock and sell it when I was actually making profit from it. It did take a while, but I think it was ultimately led me to making the most profit I have ever made. I was also able to learn something not to do, after purchasing stocks from Fit Bit. A few days after making the purchase, I was able to determine the reason why I was loosing so much money. I purchased the shares from Fit Bit when it was at its peak (big mistake), so as time progressed, even when Fit Bit was going up, it was not nearly as close to the point at which I bought it at. After this mistake, I now know that it is seriously not a good idea to buy shares when the stock is doing so well. Instead it is a better move to predict when the stock will do well, so that you can buy the shares at a much lower price, resulting in making a greater profit.
What Have I Done and Why
Regards to this week, I have taken on different approaches. I have focused on stocks that fluctuate specifically, I either shorted them when I thought they were at their peaks, or I bought them when I believed they were on their way of going up. I also applied this strategy to all the other stocks in which I invested in, regardless if they fluctuate frequently or not. Since some stocks can be very unpredictable, I also set limit orders on a few of them to prevent losing a great deal of money.
A while back, around September 7, Apple had been going down after the Apple event about the iPhone 7. Since Apple was not doing so well, I thought it would be a risky move to invest before the iPhone 7 was released incase if sales did not go well. So what I decided to do was wait the day of the release go by and see how Apple did, on September 13 it appeared as if Apple did very well. So I took the risk to buy Apple on September 14, assuming that Apple would continue to excel at a constant rate. I was lucky that Apple continued to go up after the release, allowing for me to make a profit.
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