Essay About Lessons of the Stock Market
Mika, a Lebanese-British singer songwriter, once proclaimed, “In the stock market, when you are right, you make a little money; when you are wrong, you learn a lot of lessons, so you always win!” This means that you can either make money or learn from your mistakes and do better next time. The stock market has taught me a number of lessons, such as being an enlightened investor and spending enough money that I make a reasonable amount of money. I have also learned that ESG stocks come to the aid of the environment, social issues, and government. This knowledge can assist me to invest wisely and make money when I am older and an adult.
In my life, I am not a risky person. I always double check my answers, confirm everything, and verify directions. An important ability that SMG has taught me is to take chances in life. If a person finds a stock that they anticipate will do well, they might buy many shares of the stock. However, the exact opposite was the case for me. I would stare at the data of how well the stock had been doing for the past few months for 10 minutes straight, buy 10 shares, and lastly regret not buying more because the stock did wonderful and I only got a little bit of the profit due to the fact that I was conservative and only bought 10 shares. This has shown me that I should take chances and buy more stocks instead of getting the minimum amount.
SMG has additionally taught me how to spend my money wisely. Before playing SMG, I didn’t know anything about spending money. After my experience with SMG, I learned that you should check on Yahoo Finance the history of how the stock you plan to buy has done over the past months, or even years. I learned this the hard way. For example, I decided I wanted to purchase Beyond Meat as one of the first purchases I made in the game. I wished to support what they were doing to help meat eaters not eat as much meat, especially beef. I purchased 10 shares of BYND, and….lost money. The stock was going down, and I didn’t know that Yahoo Finance existed at the time. I figured I would just wait and the stock would eventually go up. (Spoiler alert: the stock didn’t go up.) I sold five shares of BYND, which meant that I was losing less money, but not by a lot. When my teacher introduced Yahoo Finance to us, I realized why: the stock had been going down over the course of 6 months. That was how I learned that I should probably check the graph next time.
This can help me in my future because I will likely invest in stocks when I am an adult. I need these skills to know how to invest in stocks, how to short sell, and how to make money. A valuable lesson is I need to buy more shares of stocks I believe will succeed so that I can earn money. I should check the history of the stock in question so that I can make informed decisions. Being capable of these skills is crucial for my financial future. Imagine if someone told an infant to cook a meal all by themselves in the kitchen that they couldn’t even reach! They are not equipped with the skills to cook a meal alone and would get hurt fairly quickly. That is similar to not knowing how to play the Stock Market Game. Not knowing what a stock is or how to buy stocks that will do well will get you nowhere.
If I had 100,000 to invest, I would invest in stocks that help solve problems that I care about. In particular, I would invest in companies that provide clean water to people that truly need it because they don’t have any. An example of a company that wants to make clean water accessible to everyone is Global X Clean Water ETF (AQWA). They desire to deliver clean water to needy people and purify dirty water. Another company I would invest in to do well over the next 30 years is Bank of America Corporations (BAC). They support racial equality and have given US $1 billion to improve justice, along with US $25 million to help reskill and up-skill colored people. I would want to invest in these companies because I know that it is wrong that people all over the world don't have access to clean drinking water and they have to sometimes walk for miles to an unsanitary water source. I also believe that it is extremely unfair that people are treated differently because of their race. I want help to solve these problems in the next 30 years.
The SMG has taught me many topics from money management to ESG stocks to being informed. I can use this knowledge to make money when I am older and invest in the real stock market. ESG stocks will also help in the future to assist human life and will likely do well in the future. All things considered, the Stock Market Game has taught me many useful lessons and I look forward to continuing playing the game from now onwards.
