Describe whether you make stock-investment decisions in your personal life and how you do or would make those decisions.

Journal 6-2: Risk and Return in Investing

My personal investment decisions are based on my research. Before I decide to invest, I research the stocks that interest me thoroughly and carefully consider factors such as the company’s performance history, its financial status, and any potential risks or rewards associated with investing in a particular company. When I gather all the information I need, I decide if it is a good investment for my long-term objectives and goals. In this case, I would allocate some funds for the purchase of shares.

As I research companies and assess risk before investing, I also use tools such as P/E and charts patterns for technical analysis. With these tools at my fingertips, I can better assess where a particular stock will be heading in terms of its price movements and whether it’s worth investing. No matter how thorough the research and preparation, there is always a risk involved when it comes to investing in stocks.