I’ve always been fascinated by how companies function and how their operations affect not only the direct stakeholders that are the company owners and customers and/or clients but also their investors and the company’s position on the stock market.
Recently, I’ve had the chance to try out this stock trading online simulator called Wall Street Survivor, which upon registration boosts your virtual ‘bank account’ with $200,000 for you to try and invest on real world companies with regularly updated stock prices.
I learned about value stocks, growth stocks, and how to not make the newbie stock trader’s mistake. So for starters I thought I’d search for a company that doesn’t have a high valuation but has huge promises for the future.
I came across this Peregrine Pharmaceuticals Inc. trading under (PPHM) which looked promising. Now I know, I’m not very professional into jumping straight into buying 5000 shares without consulting some balance sheets, income statements, and some history charts, but what the hell… since this is the beginning and I’m playing with an imaginary number that doesn’t have any value in real life, I thought I’ll give it a go.
Now, I didn’t just jump at it completely. I did read some news about it. Specifically about how Peregrine experiments with the bavituximab drug to treat non-small cell lung cancer ended up showing “major discrepancies”, which as a result affected its stock value tremendously plummeting it from a High $5.50 a share on 07/09/2012 to a Low $1.55 on 25/09/2012. Three weeks difference and a test result can tremendously affect the confidence of investors in Peregrine’s future stock value.
Check this link for more information:
Nevertheless, I purchased 5000 shares at $1.55 and sold them after an hour at $1.87 (which turned out to be its Day High). Made over a thousand bucks from that (which sadly was just some virtual cash resonating from my Macbook’s screen).
Anyway, it was an interesting and exciting experience, and I hope to learn more and keep advancing my stock trading and investment skills as time goes on.
Many thanks for taking the time to read this post.