The stock market used to be an elusive behemoth; a decade ago, buying and selling stocks was considered to be a pursuit limited to those with a great deal of disposable income who could afford a financial advisor. There were certainly entry barriers to younger individuals, which was primarily composed of having the capital to actually purchase shares, as well as the knowledge to turn a profit. Without a solid background in the stock market, the ordeal might seem highly akin to gambling.
Nonetheless, development of apps such as Robinhood have allowed the general public to make forays into the world of stocks at little risk and little expense. Drawn by incentives such as the offer of free shares, many university-aged students have begun to explore their ability to acquire and sell stocks within an affordable range. I began a Robinhood account a couple years ago, and I remember being thrilled to discover the variety of penny stocks on the site. In addition, Robinhood has also introduced the ability to buy fractional shares on the app, which expands the user’s ability to procure highly-desired stocks at a price that is manageable.
Robinhood has frequently been on my mind lately due to the volatility of the stock market. It appears that the app vaulted into public consciousness after the massive rise in Gamestop stock. While each share used to be priced around twenty dollars, on January 28, the price rose to an all-time high of $483.00. Currently, each share is at around $115.72, which is a massive departure from the initial stock price, but for investors, devastating in comparison to the peak share price. Robinhood, due to the massive volatility, had actually prevented users from buying and selling shares, a decision met with much public fury due to the appearance of gate-keeping the public from taking advantage of the bubble.
Even more fascinating with Gamestop's meteoric rise is its origin. Users on Reddit essentially increased demand shares through widespread buying, which raised share prices. This created an issue with financial institutions that held short stocks, which are stocks that are staked to go lower than their buying price. If the price falls, the financial institution turns a profit, but if it goes up, the financial institution has a massive issue. This phenomenon was remarkable, because it confirmed a rule of stocks: the general public can influence prices. What occurred with Gamestop was a singularity due to widespread, public cooperation, and has empowered the public to attempt the same with other penny stocks.
Reflecting on my own stocks, I am exceedingly averse to selling. This has paid off with several stocks, particularly, the free share I obtained when I signed up for Robinhood used to be priced in the single digits, and now is $60 a share. Nonetheless, I had bought some shares of a cryptocurrency that has been catapulted into public consciousness and reached a high that I sincerely doubt will occur again. I should have sold, I kept thinking, but I remained static. Maybe tomorrow will be better.
The game of stocks is not too different from our own lives. We choose what we invest in, whether that be money, time, or energy. I have come to realize that my strategy parallels my own choices on a day-to-day basis. I have invested my “capital” into areas such as academics, extra-curriculars, and work, and I have realized that I have become extremely averse to adding different activities. Although the aforementioned are certainly good things to invest in, the frequent feeling of burn-out is due to being cemented in a certain routine.
Diversifying one’s portfolio is a common catchphrase when investing, and I believe that it is extremely applicable within an individual’s personal life as well. Although the majority of a person’s time and energy can be portioned towards activities that are predicted to yield the highest reward (i.e. academia and work), it is important to invest in oneself in other ways as well. Physical and mental health are of utmost importance, and it is important to dedicate time to physiological well-being. In addition, cultivating hobbies that yield short-term rewards such as joy and relaxation are crucial to having healthy shares in all aspects of life.
Investing in stocks may be a risk to an individual’s wallet, but investing your time can only yield rewards. Perhaps if we took the same amount of interest with our time as we do our stock shares, our intrinsic growth portfolio would yield extraordinary growth.
The Student Movement is the official student newspaper of 老司机传媒. Opinions expressed in the Student Movement are those of the authors and do not necessarily reflect the opinions of the editors, 老司机传媒 or the Seventh-day Adventist church.