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Fundamental Analysis: The Stock Market Game Experience

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Throughout the Stock Market Game experience, I learned how to invest intellectually and for a reason. The goal of investments is so make money and gain capital. On the other hand, there are a lot of risks that take part as well. We started using fundamental analysis at first to determine which stock, bonds, and mutual funds to purchase. Fundamental analysis gives us insight on a company’s revenues, earnings, future growth, return on equity, profit margins and other data to determine a company's underlying value and potential for future growth. In terms of stocks, fundamental analysis focuses on the financial statements of the company being evaluated meaning P/E, Market Caps, and PEG Ratios are considered and calculated. We also took into consideration of the risks imposed when investing.…show more content…
After further analysis of their company news and profits which seem to have a downward tow on the company, we decided to sell our 50 shares in one go to minimize losses. While with NFLX we were keener on the use of technical analysis where we used price patterns to form trends to determine whether the stock price will rise or fall. Technical analysis is a useful method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. For example, we saw the value decrease and realized that the trend resembled a bull market. Thus, we invested and it became our biggest gains yet. We learned that we should be active investors. Patience is imperative when determining sell/buy indicators using Bollinger Bands and RSIs, however, checking our portfolio regularly is vital if you want to capitalize on the
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