Which stock should I buy? I have to sell it in May. I need a BIG profit!?

so for my economics class my teacher told me to research a stock to buy (not for real though) and that we would keep track of it as a class. & whichever class made the most profit when by the end of the school year (around may) wouldn't have to take a final exam... thing is, i have NO IDEA what to look for. he tought us the jist of the market, but as i was researching, i kinda confused myself with words i didn't recognize. so maybe someone can give me advice, or any kind of help with this, i would really really appreciate it :) thanks.

2 Answers

  • 1 decade ago
    Favorite Answer

    There are many good stocks out there such as McDonalds, (MCD), Coca-Cola (KO), Wal-Mart (WMT), Microsoft (MSFT), Ford (F), Google (GOOG), Target (TGT), Netflix (NFLX), Rockwell Collins (COL), or Dupont (DD).

    You can also invest in funds such as QQQQ or SPY. If you invest in SPY, your money is automatically invested into 500 of the best American companies. QQQQ invests in technology stocks, while SPY is more general.

    I would suggest that you do not invest your imaginary money all at once, but do this: Divide your investment money into 18 parts and divide the amount of time left until May into 18 parts. We have 9 months left until May, so you would invest one part every 15 days. This strategy is called dollar cost averaging, and it's better than investing everything all at once, because if you invest all at once and the market goes down, your money would go down. Then if the market would go up, you would have the same amount you began with. No profit. But if you invest small amounts regularly, you will keep investing even if the market goes down, and you may get a chance to buy shares at low prices. Then if the market goes back up until May, you will have more money.

    There is no guarantee that the market will go down, but it could go down or up. Dollar cost averaging is considered a safe investment strategy.

  • Anonymous
    4 years ago

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