8. Conclusions
This Stock Market Simulation IQP was carried out during E term and the
summer of 2006. Through practice with trades, analysis of important investment
decisions, and use of available online resources, I began with a goal to learn
about the stock market and its daily operations and finished with a good deal of
valuable first-hand knowledge.
As I’m sure is a problem with all forms of market analysis, by the time a
decision is made, circumstances in the market can change, sometimes radically.
The best-case scenario would be an instantaneous analysis and reaction to
market stimuli, but this, of course, is nearly an impossible task in the human
mind. Specifically, with my simulation, by the time I identified trends or by the
time I had a chance to check up on my investments, good, strong chances to
make a financial climb had passed and I was left with, in certain instances, less
than the maximum possible gains. This, as I have learned, is the nature of the
market. Timing is the most vital skill any investor can acquire.
Like any prized skill, stock market analysis requires a great deal of
practice in order to perfect. My simulation did not provide that amount of practice
and further practice would be necessary to come close to any sort of guarantee
of success. My simulation is a good starting point for further diving into the daily
workings of the modern stock market. This simulation and research provided me
with encouragement and confidence for future, real investment. My simulations
changed many of my perceptions, mainly, that the stock market is not as
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intimidating as I once thought and is actually quite accessible to anyone with the
capital, ambition and determination to make it work for them.
The most important knowledge garnered from this project is that
knowledge, itself, is the key to unlocking the stock market. The stock market is
not the unfathomably complicated system that I once thought it to be. Online or
in books, the information is out there and all anyone has to do is read it and use
it.
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