When it comes to investing in the stock market, I am not one to follow. I would rather invest in companies I believe in rather than one’s that make money. That’s why my 401k funds are managed by a stock broker instead of me. He probably knows how to do things much better than I do. But what would happen if I did have some money to invest in the stock market and made the choices myself? That scenario might have worked better than expected.
Eddie, Larry and I used Yahoo’s financial page to “invest” approximately $1700 make believe money in the market a month or so ago. The only stipulations were that (1) the investments had to be cheap stocks and (2) we had to charge ourselves $35 every time we bought or sold shares. Having played the board game, Stocks and Bonds, this seemed like a fun thing to do — especially in the current economic market. So, I joined the experiment.
Not knowing the names of any penny stocks, I chose the worst possible stocks available: Ford, GM, Tata Motors, and Volvo Trucks. Things didn’t go very well at the beginning. Heavy losses caused me to lose hundreds of dollars almost instantly. But surprisingly, the stock values have risen recently and I’m actually ahead about $250 as of today! I’m not recommending any real investments in the stock market as I have no idea how the thing works. It was just surprising to see how things ended up today.