Business Research Paper

Many Ways to Invest

17 Apr 16

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 professional in the field or a novice, but one needs to weigh the risks associated with the probable gains. The point in the many ways to invest is that no matter method one chooses to spend, the method should work so that it can earn one additional profit.

There are several ways of investing one’s money, and these include the company stocks, Certificate of Deposit, mutual funds, and bonds. Pentheny G. article “Analysis of Stock Market Investment Strategies,” (2009) discusses and analyzes the investment in the stock market.

I. The stock market

A. Place were bonds, stocks and other securities are bought and sold

1. The New York Stock Exchange (NYSE) established in the U.S in 1972

2. Stock market crash is a sudden decline in the average price of the stock

3. The crash of the (NYSE) in 1929 caused the great depression and the recent crash in the 2008.

II. Pros and Cons of financial investment

A. Cons of financial investments

1. Success of stock market is partly attributed to luck

2. Poor investment decision can lead to loss of vast amounts of money

B. Pros of financial investment

1. Intelligent decisions can yield significant capital gains and security

2. Analysis of trends in the stock market can lead to success of an investment

III. Shares of stock

A. Public trade through stockbrokers since the general public is not allowed to trade stock in the NYSE

1. The internet facilitates information needs of the customers to trade stocks.

B. Return on investment of stock

1. Stock market depends on logical decisions, facts, and gut feeling.

2. Relative unpredictability of the stock makes it the most popular investment decision among private investors.

IV. Trading strategies of the stock market

A. Day Trading

1. Involves the strategy of buying ad trading a stock within a day

2. Relies on the daily fluctuations of the stock values

3. The internet facilitates day trading

B. Swing trading

1. Peaks price oscillation over a period of a few days

2. Involves research into different markets

3. Less risky that the day trading

V. Conclusion

A. Day trading is the easiest method for individuals new in stock trading.

1. The rules in this method are simple and can yield consistent results

B. Investing in the stock market involves making relative conservative decisions

C. Stock markets can be a lucrative business

1. Effective when one follows the set rules

Article Transition

There are several important transitions in the article, and these begin with the history of the stock market which explains the stock market as well as its origin. The next change in the article is the advantages and disadvantages of financial investment. In this transition, the author discusses some of the pros linked to investing in the stock market and also discusses the cons in choosing this type of investment.

The next transition is a discussion of the financial investment opportunities which include an analysis of bonds, shares of stock, certificates of deposit, and mutual funds. In this transition, the author discusses these investment methods in details and provides the reader with detailed information. The next transition is the market trading strategies which discuss the day trading and the swing trading strategies which are mostly used in the stock market. From there, the author explains simulated investments, and their results and demonstrates to the reader how each of the stock market strategies works.

How the Source Fits the Research

This article is fit for the upcoming research in many ways invests because it provides details in the stock market a method in which one can invest his or her money. This source influences the overall thesis statement in the sense that it discusses one of the methods of investments and shows the strategies one needs to follow to get value for his or her money. This source influences the thesis because apart from the demonstration of how stock markets work, it presents both the pros and cons of the stock market and provides numerous examples of the risks associated with the method together with the strategies to be used in this method of investment.

Since the research paper is about the many ways to invest, this article will provide information to support a single method of investments out of the many ways one can invest his or her money. By providing the history, the advantages, and the strategies of this method of investment, this source will be used to support the arguments made in the particular method of investment. In brief, this source will provide well-researched information to support the claims of investing in the stock market as one of the many ways to invest.

References

Pentheny, G. (2009). Analysis of Stock Market Investment Strategies (Doctoral dissertation, WORCESTER POLYTECHNIC INSTITUTE).