Partha's Econ Blog

After watching my father lose money in stock exchange in Bangladesh, I learned some good lessons about stock trade. In my economics class game of stock exchange, I'll try to apply those lessons and earn some money. First of all, I chose to buy stocks from companies that are energy-related, i.e. oil, petroleum, gas etc. That was a suggestion from our economics teacher for the fact that such companies make money in almost any situation due to their high demand in market. Since the US economy is not doing too well currently, I think it's for the benefit of the buyer to watch for companies that are actually making money during this downfall of the economy. This shows that such companies are able to progress even through the hardships of the economy. One of the lessons I learned in Bangladesh that I'm applying now is that not buy any stocks from companies which are doing bad for the last few months. I'm saying months because our game is going to go on for a few months. So, it's better to look at the condition of the company for the last few months. Also, another thing to consider when buying stocks is that buy when the price of the stock is relatively near the face value (par value) and starting to go up. It's never a good idea to buy when the price is extremely high and in the near future, it's likely to drop by big margin. After the purchase of stocks, keep them for some time to see how the business for that company is going. No one knows when the price for certain stock will go up. So, never lose hope for the price loss on certain stock. Whenever it seems like the price of a bought stock is reasonably high and soon it may drop, it's better to sell it so that some profit is made than losing money. Another factor to consider when buying stocks from companies is that buy from companies that has high demand in the market and always keep a look on the market of that business to see if they are bringing in any new product which might boost the stock price, and then I can sell it when the price is relatively high enough to make some profit for me. Following these guidelines, I hope to make money in the end.