7.6 - Tips for Beginner Investors

  • Due No due date
  • Points 20
  • Questions 4
  • Time Limit None
  • Allowed Attempts Unlimited

Instructions

Now that you’ve had the chance to play STAX and see what investment strategy worked best, read through this infographic that gives tips for beginner investors. Then, answer the questions.

Answer the following questions below:

  1. Look at the 3 circles in the first section of the infographic that provide advice (e.g. Invest with a long-term focus and diversify, etc.). How did your strategy when playing STAX compare to these 3 pieces of advice?
  2. Nathan invests his money into a few, individual stocks for the first time and is pleased to find that he has gained significant returns in the past 2 months. What words of caution would you give him and why?
  3. Look at the infographic sections labeled “Our Primitive Brains” and “Cognitive Biases”. Which 2-3 characteristics of our brains and biases do you think are most important for you to remember? Explain.
  4. Why, according to the infographic, should good investing be boring?
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