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

6-2 journal: risk and return in investing

I do make stock-investment decisions in my personal life. 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. Once I have all of this information, I then determine if the investment would align with my long-term goals and objectives. If it does, then I allocate a certain amount of funds towards buying shares of the stock.

In addition to researching companies and assessing risk levels before making investments, I also use fundamental analysis tools like P/E ratios and technical analysis techniques such as charting patterns to help guide my decision making. By having these resources at my disposal, it allows me to better evaluate where an individual stock is headed in terms of price movement and whether or not it is worth taking on for investment purposes. Ultimately though, no matter how much research or preparation is done beforehand; there will always be an element of risk when investing in stocks so it is important for me to remember that every decision should be made responsibly based on my own unique financial situation.