Stocks

Yesterday we did an 1870's stock market simulation. When Mr. Coyle told us one of his five investment tips,"Be fearful when others are greedy…be greedy when others are fearful" i wasn't exactly sure what it meant. I understood that it meant you have to take chances with your money, but later on i realized that wasn't all it meant. In the beginning of our investments, the silver company was shooting up and getting loads of money. People then flocked to by more silver cards, as i stayed put. Here I used the investment tip to be fearful when others are greedy. I knew the silver wouldn't always be easy to find again, so I didn't buy any stocks in silver. Sure enough, the amount of silver dropped and so did the price of the stocks. I was one of the people not mourning over their loss of money. Another example is when the Drexel-Morgan Company was not doing well because of corruption issues and of course, their stocks were low. No one wanted to go near their stocks but i followed Mr. Coyle's advice and got greedy when others were fearful. I bought some stocks in the Drexel-Morgan company and eventually the price increased greatly. I then thought more about this investment tip and realized what it really meant. It means you shouldn't just follow what everyone else is doing. It is kind of like the saying "If all your friends jumped off a cliff, would you too?". It is saying to use your own mind and common sense. Others aren't always right.