The Hidden Potential of the Stock Market

The+Hidden+Potential+of+the+Stock+Market

Adrienne Elliot, Junior Staff Writer

What was the first though you had when COVID arrived in February of 2020?  Do you remember the hysteria, the Facebook memes, or even your conspiracist uncle who always tried to convince you of a biological attack? There is one thing I can guarantee, you won’t remember was how much the stock market was suffering.    Now I get it – why would a teenager in high school give a cent for what happens in the stock market?  However, what if I told you could make easy money from the stock market just by clicking a few buttons? 

Back in February the stock market was hitting an all time low because many stocks were available due to people selling them because of Covid. This virus affected more than just the physical health of a country. Famous companies and stocks like American Airlines and Carnival Cruise Lines took a nosedive. Here is where it gets interesting. If an investor were to buy just 5 shares of American Airlines at $9.50 a stock during March of 2020, and wait to sell it a few months later at $11.25 in November of 2020, that investor would have made $8.75 just by clicking a few buttons. 

If you don’t prefer to wait months to make minimum wage, you could always “penny trade,” which occurs in minutes, virtually.  According to an online source: Penny stocks, those with a price of less than five dollars per share, are likely to be companies that have fallen on hard times. Investors are signaling, through the price of the shares, that they have doubts the company will survive. If they did not have such doubts, the price of the stock would be higher. But if these companies have stocks on major U.S. exchanges, then they are demonstrating that they have enough resources and market knowledge to attract investors, and there is a chance they will turn their business prospects around. Successful penny stock investors know that what they need to look for are signs of a business turnaround.”

With these stocks, the purchaser watches a live chart to wait until the price one bought the stock at is lower than the price at which one desires to sell. For instance, If I were to buy 100 stocks at $0.22 and I watched the live charts, and noticed that the stock went up 2 cents within a couple of minutes, the total profit I would have made would be 2 dollars in a few minutes. Most people who trade penny stocks find stocks that are even cheaper than my example and buy sometimes thousands just to sell in a few minutes. This is easy income for anyone who is of legal age. However, as with any time of money venture, there is risk and no guarantee of a positive answer always. Penny trade investors have to have a good sense for business comebacks.

Still, the attraction for quick money is there.  Anyone interested in the stock market before they are of legal age, can ask a parent to sign him/her up under the parent and use one’s own personal bank account to transfer funds; still, only transfer funds that you can do without–not necessary funds.  Many people actually do this as a part-time job on top of schooling or even working another job. The great thing about trading is that it can be done on almost any device. A lot of people use their cell phones to do thousands of dollars worth of trading in a day; others will do the same amount of trading with 6 monitors watching tens of stocks unfold. A great way to practice trading is to do paper trading, where an investor pretends to trade with fake money, but in real time with the market.

Most people are unaware of the potentials hidden within the market. Hopefully this article will enlighten you with another option to make some extra cash. When junior Kennedy Evans was given this information, she came to the following conclusion: “I think this is what the younger generation needs to hear. Investing in the stock market is easy and all you do is use skills that are taught in school like reading charts.”  When this information was also given to sophomore Rocco Mariano, he said, “Does that mean I don’t have to work? If so I’ll be glad to do stocks so I just play video games my whole life.” Undoubtedly, Rocco will have to work at a real job throughout most of his adult life; however, it doesn’t hurt to look into trading as a viable option to make a little more money at a time where money is so hard to earn.

 

SOURCES: https://www.webull.com/quote/nasdaq-aal

https://www.thebalance.com/penny-stocks-trading-guide-for-beginners-4123635