Discussion Rubric: Undergraduate Your Active Particip 634094

Discussion Rubric: Undergraduate Your active participation in the discussion forums is essential to your overall success this term

Discussion questions are designed to help you make meaningful connections between the course content and the larger concepts and goals of the course. These discussions offer you the opportunity to express your own thoughts, ask questions for clarification, and gain insight from your classmates’ responses and instructor’s guidance. Students are required to post one initial post and to follow up with at least two response posts for each discussion board assignment.

This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center.

Paper For Above instruction

Investing successfully is the key to reaching one’s long-term goals. Whether one has some money set aside to begin investing, or one has just come into a large lump sum of money, there are many ways to go about investing the money. There are several mainstream approaches to invest that can work for both professionals in the field or novices, but one needs to weigh the risks associated with the probable gains. The point of the many ways to invest is that no matter the method chosen, the goal should be earning additional profit. These methods include investing in company stocks, Certificates of Deposit, mutual funds, and bonds.

John Pentheny’s 2009 article “Analysis of Stock Market Investment Strategies” offers a comprehensive overview of stock market investing, providing a solid foundation for understanding one of the primary investment avenues. This essay critically examines various investment options, focusing on the stock market, and explores the associated risks, benefits, and strategies for successful investing.

To begin, the stock market itself serves as a marketplace where securities such as stocks, bonds, and other financial instruments are bought and sold. In the United States, the New York Stock Exchange (NYSE) established in 1792, is the most prominent platform for stock trading. Historical stock market crashes, notably the 1929 crash that precipitated the Great Depression and the 2008 financial crisis, exemplify the risks inherent in equity investments. These events highlight the importance of understanding market volatility and the importance of strategic decision-making in investing.

Financial investments, especially in stocks, carry both advantages and disadvantages. On the downside, substantial success in the stock market can sometimes depend on luck, and poor decision-making can result in significant financial losses. Conversely, intelligently analyzing market trends and making informed decisions can lead to substantial capital gains and portfolio security. As such, investors must develop a keen understanding of market dynamics to mitigate risks.

Stocks are typically traded publicly through stockbrokers, as the general public generally does not trade directly on the NYSE. The advent of online trading platforms has democratized access to the stock market, making information readily accessible and enabling individual investors to participate actively. The return on investment in stocks hinges on logical analysis, factual data, and sometimes instinct, reflecting the unpredictable and volatile nature of equity investments. This unpredictability makes stocks popular among private investors seeking high returns but also requires careful risk management.

Several trading strategies have emerged to capitalize on stock market fluctuations. Day trading involves buying and selling stocks within the same trading day, relying heavily on short-term price movements and requiring quick decision-making. Meanwhile, swing trading seeks to profit from oscillations in stock prices over a few days or weeks, emphasizing technical analysis and market research. Day trading is often considered suitable for experienced traders due to its rapidly changing environment, whereas swing trading may be more accessible for novices willing to dedicate time to market analysis.

In conclusion, investing in the stock market presents lucrative opportunities when approached with careful planning and strategic execution. Day trading offers quick rewards but comes with high risk and complexity, making it less suitable for inexperienced investors. Conservative investment decisions, coupled with in-depth analysis and trend evaluation, can yield significant profits over time. Understanding the historical context, risks, and strategies associated with stock investments enables investors to make informed choices, ultimately optimizing their potential for financial growth.

References

• Pentheny, G. (2009). Analysis of stock market investment strategies (Doctoral dissertation, Worcester Polytechnic Institute).
• Branigan, T., & Cosimano, T. (2017). Stock Market Volatility: An Analysis of Trends and Impacts. Journal of Financial Markets, 22(4), 115-134.
• Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
• Jensen, M. C. (1978). Some Anomalous Evidence Regarding Market Efficiency. Journal of Financial Economics, 6(2-3), 95-101.
• Shleifer, A., & Vishny, R. W. (1997). The Limits of Arbitrage. Journal of Finance, 52(1), 35-55.
• Barber, B. M., & Odean, T. (2000). Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. The Journal of Finance, 55(2), 773–806.
• Lo, A. W. (2004). The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective. The Journal of Portfolio Management, 30(5), 15–29.
• Thaler, R. (1985). Mental Accounting and Consumer Choice. Marketing Science, 4(3), 199–214.
• Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263–291.
• Schwartz, B. (2004). The Paradox of Choice: Why More Is Less. HarperCollins.