Research and Speculation

There are two ways you can choose to buy a stock. One way is to research the stock and make the best decision by analyzing the company. Public companies have to release their financial statements quarterly. The statements give investors a window into the company’s operations and profit. Making an informed decision requires more than just looking at the financials. One can also read articles and look for new investments or company news that might make the company more attractive to purchase. This is the best way to gain long term growth by investing in a company that is profitable and growing.

The market depends on supply and demand to drive the price of the stock. If a stock is desired, then the stock price could rise rapidly. Another way to choose stocks is to speculate. Speculation is basically a guess that a stock will rise or fall and buy the stock with that in mind. This is usually a short-term gain or loss strategy that is more exciting that doing long term investing. To make speculating even more fun the investor can purchase call or put options. These contracts give the buyer the ability to purchase the stock at a later date that is specific to the contract. Also, the buyer could sell the contract before the expiration date and not purchase the stocks.

In this blog, I plan to focus on the latter and speculate my way to becoming rich. Disclaimer: I do have a 401k and other long-term investments, but those are being managed by someone other than myself. One set of stocks I found interesting is the Canadian cannabis company Sundial Growers $SNDL. It’s a cheaper stock with a price hovering around 1.50 per share. The Biden Administration is moving towards federal legislation that would push legal grower operations in the light. Also, a full legalization would hopefully allow imports from Canada. While this is full speculation, it’s not out of the realm of possibility. I put a call option in for 4 or (400) stock contracts that expire in June of 2021.

I implore anyone reading this blog to let me know the stocks that you would consider and be would be candidate for short term gains! Please use the comment section below or check out my twitter.

1 thought on “Research and Speculation

  1. Pingback: Purchasing Stock and Options | The Winding Road to Becoming a Day Trader

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