Monday, October 3, 2011

Stock Vocab/ Journal Entry Week Three

1.   RISK-The chance of losing some or the entire thing of your original investment
Ex: The risk i have in losing everything from starbucks is high because of the high rise in coffee bean prices.

2.   SMALL CAP-Stocks with a small market capitalization of 3 million to 2 billion dollars.
Ex: Spreadtrum Communications is a small cap company because its income is less than 2 billion dollars.

3.   MID CAP- Stock with an average market capitalization of 2 billion dollars to 10 billion dollars.
Ex: Eagle Materials is a Mid Cap company because its income is between 2 billion and 10 billion dollars

4.   LARGE CAP-Largest market capitalization that's income is more than 10 billion dollars.
Ex:Apple is a Large Cap company because its income is more than 10 billion dollars.

Journal
This week i choose not to sell any stocks. I decided to do this because none of my stocks showed a big gain or lose that would set me off to sell them. I did some research to see if there were any catalysts coming soon for any of my investments. I have decided to keep Nike because basketball season is coming soon and according to the 52 week graph Nike's stocks go up in price around the middle of October because people begin buying basketball shoes. After the prices sky rocket for a few weeks i plan on short selling it to gain money.
Another stock i thought about was Goodrich. That is the only stock that I'm consistently not losing money on. Eventually when this stock is going up atleast 15%  i will try to short sell it to gain alot of money.


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