Stock Simulation AnalysisPeople take many risks in their lives. However, investing in the stock market is one of the riskiest things. All the money saved over the years, perhaps over a lifetime, could be lost in the blink of an eye. The Great Depression was triggered by the most famous stock market crash in history, another crash occurred in 1987 and could occur at any time. However, people invest to make money and through this simulation, basic strategies and understanding have been developed to have a perspective on the risk and tasks involved in investing. Although it was not a high-ranking person in the class, the simulation result was not bad. I lost about five hundred and seventy dollars. However, I could have done much worse. If I had invested that money in a CD or savings account, rather than the stock market, I would never have lost money in the first place. In a CD or savings account, there is a fixed interest rate so your money always grows. There's also a fixed rate of return: whatever money you put in the bank, whenever you want to withdraw it, it's there. However, when investing in the stock market, there is no fixed rate of return. In the simulation, my rate of return on the stocks I invested in was -3.43% (for six months). Even though I lost money, I did better than I thought I did in the simulation. At the beginning of the project I didn't know anything and I adapted and started to understand and succeed towards the end. When investing in the stock market at the start of the simulation, I chose well-known companies, such as Wal-Mart or Exxon-Mobil. , in which to invest. Yet as the simulation continued and I continued to drop in ranking, I decided a change of pace was necessary. To make sure I was investing in the right stocks, I would look at the portfolio of the person in first or second place and invest in any investments that seemed to work for them. In some cases they worked for me and in others they were not so good. Usually the person in first or second place was able to cheat the system and split their shares. Since I don't know how to do that, they sometimes shared the stocks I had invested in, so for me the stocks were not suitable for me...... middle of paper ...... completely foreign to me when we started the simulation. However, once the simulation is complete and the unit is connected, I have a better understanding of the language. I may not understand how to split a title on simulation, but I know why it's a good thing and what would happen if I did. I now know how to buy to cover when shorting stocks. The most important thing I took away from the simulation, however, was not the language. Although useful, it allowed for some learning and experimenting with the risks of investing in stocks. If I hadn't learned about the stock market or the risks it carries, I could have invested in the future and lost all my savings. Or I could have not done it and missed out on making a lot of money. Although the simulation was useful and I learned a lot from it, there were times when I didn't even look at the website. There was a time when I didn't make any transactions and I know that was true for the whole class as well. In the future, it might be better if you have to do a certain number of trades per week, because it's a project and there's some learning involved. And sometimes there wasn't one.