Analyzing the Pros and Cons of Stock Investment for College Students

Stock investment is highly specialized, and a lot of preparations have to be made before selecting the stocks to invest in, for example, analyzing the company's fundamentals, the k-chart, and so on, requires students to have a strong learning ability. The first step is to learn how to make the best use of the resources available to you. Although there is a distance between theory and practice, through this series of analysis, college students will have a deeper understanding of theoretical knowledge. And the economy and politics are closely related, college students in the stock investment at the same time also need to collect and analyze the economic impact of a variety of political events at home and abroad, and to find a trace of the impact on stock prices.

3.2 Stock investment is conducive to students' mastery of current news and social integration

Stock investment involves analyzing international and domestic macroeconomic trends, as well as analyzing corporate finance and management, which involves the knowledge of many disciplines, and inadvertently fosters college students' interest in learning different disciplines. And in the case of solid learning of basic knowledge, the development of the ability to analyze the problem is also the exercise of the overall quality of college students, through the full analysis of the actual grasp of the work of college students in the future will be of great benefit.

A large part of the stock market is influenced by national policy, there is a great relevance, that is, there will be what is usually referred to as the "policy market", college students in the process of stock investment is bound to come into contact with this type of stock, and over time has developed the habit of paying attention to this type of stock news, its grasp and understanding of the national macro-economic situation will be the same. Macroeconomic grasp and understanding will also be more keen, unknowingly contact with society will be more and more. It is undoubtedly a good propellant for college students to go into society.

3.3 Stock investment is conducive to improving the financial awareness of college students

The importance of financial management in today's society is self-evident. At present, most of the college students' financial resources are given by their families, and they seldom have a plan to spend money, so many of them know little about the concept of money and its value. By investing in stocks, college students can understand how to manage money, how to utilize money rationally, and how to understand the operation of money, how to increase or decrease money, and how to understand that money is not easy to come by. By investing in stocks, it will be conducive to the development of college students' concept of investment and finance, so that they can learn to obtain the corresponding investment income through scientific investment, thus enhancing the ability of capital management and operation, and becoming a new era of college students who know how to manage money and understand investment [1].

4. Disadvantages of stock investment for college students

Everything has two sides. College students can get exercise through the stock market, but at the same time, it is a risky investment. Many people think that for college students, whether it is financial ability or psychological quality, the college student group can not withstand the huge risk and pressure of the stock market. For this reason, many schools and parents strongly oppose the stock investment behavior of college students, and the Ministry of Education has also clearly indicated that stock speculation by college students should not be promoted. For college student groups, stock investment has the following main disadvantages.

4.1 Impact on the normal study life of college students

The main task of college students is to learn professional knowledge, and stock investment undoubtedly requires a lot of time and energy to study stock market quotes, which takes up valuable time that should be used for learning cultural knowledge and social interactions, and if overly obsessed with the stock is bound to affect the college students' daily course work, which will lead to a decline in grades. Problems. The duty of students is to study, if they spend all their energy on stock trading, college students will neglect the study of other topics, which will lead to the cart before the horse in terms of study and stock trading. What's more, some college students even focus on stock trading in their dormitories and repeatedly miss classes, which affects their graduation and job advancement.

4.2 The economic burden on college students

College students have a relatively weak mental capacity, and the lack of mental capacity in the face of stock investment failures is likely to cause all kinds of harm to college students' mental and physical health. Most of the funds for college students to speculate on stocks come from their parents' living expenses. This is the guarantee for college students to study and live in school. Using their own funds for stock investment is very different from borrowing funds for stock investment, and borrowing money for stock speculation is also the most taboo in the stock market. Once the college students will borrowed funds and living expenses into the stock market losses, will undoubtedly cause great pressure on its economic, because of which there are few suicides.

4.3 Negative psychological impact on college students

The speculation of college students is based on the psychology of luck, rather than the true meaning of "financial management". The purpose of financial management is to increase wealth under the premise of risk control, and it is difficult for college students to control the risk of stock speculation. Once college students' stock speculation leads to huge losses, they will be psychologically attacked, which is unbearable for college students. Stock market investment is a knowledge for which college students are seldom adequately prepared, psychologically and otherwise. If they enter the stock market rashly, it can easily lead to losses. Even some college student stockholders with high risk appetite make stock investment full of strong gambling flavor, thinking that stock investment is gambling, ignoring the professional knowledge and operating rules contained behind stock market fluctuations [2]. Whether you win or lose in stock investment, stock speculation by college students is not conducive to the establishment of a correct view of wealth, and will bring obstacles to the healthy development of their psychology.

5. Conclusion and Inspiration

5.1 College students should build on their strengths and avoid their weaknesses

Through the research and observation of college students' stock investment behavior, it can be found that college students are in the beginning of the stock investment in general at a kind of ignorance stage. In the process of investing in stocks, it is beneficial for college students to sharpen their minds and master their knowledge of personal finance. However, the risks involved should not be ignored. College students should weigh the pros and cons, do not delay the study of scientific and cultural knowledge, seek advantages, avoid disadvantages, and actively guide the large securities and stock investment.

5.2 College students should focus on their studies

For college students, their main focus is still on their studies, and how to correctly and objectively deal with the investment needs to be correctly guided to students. Colleges and universities should strengthen the stock investment of college students. They should be guided positively, so that they can scientifically carry out the practice of stock investment and other personal financial management methods without affecting their studies. College students should not blindly think of becoming rich by making big money in the stock market. They should emphasize the accumulation of practical experience in stock speculation, the cultivation of financial awareness and the expansion of knowledge. What's more, they shouldn't put the cart before the horse, defeating the purpose of going to college in the first place. And stock investment is not necessarily speculation, the same can also buy some funds or fixed investment products as a way of personal finance. In the face of the volatility of the stock market, only to establish the correct concept of wealth, set up the correct pursuit of life, and constantly improve self-cultivation, in order to make the future life path full of light. College students should understand that realizing their life's ambition not only means making money, but also the idea of making money only by speculation is not conducive for college students to face life and work. Many college students don't do anything at home, their lives are irregular and they even indulge in games all day long. Therefore, it is good to utilize these free time to invest in stocks. On the one hand, we can consolidate the knowledge we have learned in textbooks and apply it in practice. On the other hand, since the stock market has fixed opening and closing times, we must sit in front of the computer on time and on time, pay attention to the stock market dynamics, and develop a good habit of working regularly. College students should first correctly treat the purpose of stock speculation, there is nothing in the world that can be gained without hard work, and there is no shortcut to go [3].

5.3 Schools and parents should fully guide college students

College students to invest in stocks is largely influenced by the people around them, especially their parents and teachers who are close to them. When some students see the crazy stories of people around them getting rich overnight by speculating in stocks, they can't resist the urge to speculate in the stock market. At this time, schools and parents need to guide them correctly, so that college students understand that stock investment is more to develop their ability to analyze and solve problems, improve their financial awareness, improve their psychological resilience, not just speculation, the pursuit of money, fun, college students should still focus on learning. Through the active and positive guidance on college students' stock investment, college students can fully absorb the benefits brought by stock investment, and at the same time, avoid the normal life of college students from being overly affected by the stock market and their moods fluctuating by the fluctuations of the stock market. More importantly, through adequate guidance, we can control the financial resources of students' stock investment within a certain limit, reduce the capital flow of stock investment, and reduce the risk borne by this group of college students in stock investment.

References

[1]Dong Xinlu,Zhang Jieqian. Analysis of the pros and cons of stock investment for school college students under the perspective of students[J]. Education Teaching Forum,2017(30).

[2]Zhuang Haining. Analysis of investment concept and investment strategy of college students' stockholders[J]. Modern Business Industry,2016,37(25).

[3]Yang Yichen,Zhang Quanfu,Wang Jimin,et al. Survey on the current situation of stock speculation among college students in Nanjing[J]. Cooperative Economy and Technology,2017(7).

With the deepening of reform and opening up, the rapid development of China's economy, people's incomes as well as savings continue to increase, and the awareness of investment and finance is also enhanced, more and more people invest in stocks, and many school college students also make stock investments. So, what are the pros and cons of investing in stocks for college students who have limited sources of funds, time, investment knowledge, skills, experience, and loss tolerance? And how to avoid the shortcomings and correctly guide the college students to invest in stocks?

1 College students investing in stocks

1.1 Develop the ability to collect and analyze information

Stock investment requires the collection and analysis of international and domestic information on current events; the world's major economies are now in the economic policy and possible future economic policy; the current state of the domestic economy, such as GDP (GDP), CPI (CPI), and the number of people in the country, the number of people in the country, the number of people in the country, the number of people in the world and the number of people in the world. GDP), CPI (Consumer Price Index), PPI (Producer Price Index), MPI (Purchasing Manager's Index), M1 (narrow money), M2 (broad money), interest rates and exchange rates, loan balances, total social financing and other information; information on international and domestic scientific and technological trends, information on new technologies, new product development and application; regional economic information; the industry in which the individual stock, Scale, talent, technology, capital, financial situation, management level, position in the industry and development prospects and other fundamental information and individual stocks of the monthly, weekly, daily, time trends, line combinations and some important technical indicators and other information. In order to analyze and predict the country's future fiscal policy, monetary policy, taxation, interest rates, exchange rates, trade policy, industrial policy, regional economic policy, etc.; grasp the stock investment environment; clear investment direction and investment in individual stocks; development of investment operation strategy, such as the timing of the purchase and sale of shares, holding time limit, stop-loss and take-profit position of the investment strategy, and so on.

It can be said that the more comprehensive information collection, the more accurate, the more timely, the more detailed analysis, the more in-depth, the greater the likelihood of success in stock investment. Through stock investment, college students are encouraged to learn the content and methods of collecting information for stock investment and the methods of analyzing information prediction, so as to rapidly improve their ability to collect and analyze information.

1.2 Promote their efforts to study, expand their knowledge, so that the theory and practice of organic combination

Stock investment needs to understand the international and domestic current affairs at any time; the need to learn and master macroeconomics, good at analyzing the international and domestic macroeconomic situation; the need to know the management of the management of the science and accounting, to facilitate the analysis of the management of the specific enterprise and the financial situation; the need to have certain knowledge of computer operation and programming knowledge. Knowledge of computer operations and programming knowledge, investment operations and stock screening; more in-depth knowledge of the trend and stock analysis and technology, such as trend analysis knowledge and technology, K-line analysis knowledge and technology, technical indicator analysis knowledge and technology, in order to develop operational strategies; and so on. Stock investment on the need for such knowledge and technology will prompt students to study, to study, prompting students to expand their knowledge, the theoretical knowledge and practice, so that learning can be utilized.

1.3 Cultivate a sense of information sharing, communication and collaboration, and overcome selfishness and closed-mindedness

Stock investment requires a large amount of comprehensive, timely and accurate information, and the ability of individuals to obtain and analyze information is limited, which requires investors to communicate, collaborate, and brainstorm.

1.4 Cultivate various abilities

Cultivate college students' innovation ability, enhance their judgment and use of funds, as well as the ability to invest money. Warren Buffett, the god of the stock market, said that how much wealth can be accumulated in a lifetime is not determined by how much money you can earn, but depends on how you invest and manage your money, and that it is better for money to find people than for people to find money, and that you should know how to make money work for you rather than for you to work for money. This shows that the ability to invest money is very important, and stock investment is one of the best choices to exercise this ability in college students.

1.5 Cultivate discipline, execution and the ability to adapt

Stock investment is not arbitrary, but according to the plan, this plan is the investment strategy. Once the investment strategy is formulated, in the absence of major changes in the environment, it should be strictly according to the investment strategy, not because of personal favor or disfavor, fear, greed and change the operating strategy at will, so that the time to go out only to go out. However, the stock investment and is based on the trend for, this potential on the one hand refers to the stock specific running trend, on the other hand refers to the stock investment operation strategy environment, once this potential changes, the specific operation strategy will also change accordingly. Through the training in stock investment according to the plan and follow the trend, so as to cultivate the discipline, execution and resilience of college students.

1.6 Frustration education

Stock investment is a high-risk investment, the phenomenon of loss occurs from time to time, which requires investors to summarize the experience in a timely manner, the correct face of the profit and loss, to maintain a calm state of mind, which includes the frustration education.

In short, the investment in stocks on the knowledge, ability, skills or experience and psychological requirements are all-round, high standards, then the investment in stocks in college students to get the exercise and promotion is also all-round, not only can make the college students in the learning to do, more can prompt the college students in the middle of doing to do to do learning, to do both, and to complement each other.

2 disadvantages of stock investment in college students

2.1 It is possible to put the cart before the horse or to give up on the end

The main task of college students is to learn, to learn the professional knowledge and knowledge related to it, to learn the professional skills, to exercise all aspects of the ability, to learn to be and to do. This learning is all-encompassing, and should be a high standard, the main energy and time of college students should also be placed in these areas, and investment in stocks is only a small part of it, is a hobby and learning. If you don't recognize this, and put your main energy and time on stock investment, and even study stocks and stock investment operations in class, then you are putting the cart before the horse.

2.2 Possible impact on life

College students investing in stocks have a single source of funds, less money, and some students even use their living expenses to invest, so the ability to resist risk is not strong enough; coupled with their own professional knowledge is limited, the lack of experience, the analysis of the screening stock and the operation of the technology may not be mature enough, and thus the likelihood of loss is greater. Once the loss, it is possible to have an impact on the student's life.

2.3 The possibility of individual college students becoming gold diggers

College students are not only learning professional knowledge and skills and related knowledge, and cultivating their own abilities, but they are also maturing in their ideologies. If you only think about stock speculation at this stage, over time you may form a blind worship of money, the value of money as the highest value, the value of all values to be subordinate to the value of money ideological concepts and behaviors, and the traditional virtues of our country to be the first to be disappeared in their consciousness and behavior, so as to form the ideological consciousness of gold worship, etc.

This is the first time in the history of the world that we have seen a lot of people who are not aware of the value of money.

3 solutions to the problem

(1) use after-school time to actively learn the theoretical knowledge of stock investment, skills and related knowledge, such as the trend theory of stock investment, the K line and the average knowledge, the knowledge of the main technical indicators, knowledge of the stock screening, analysis, knowledge and skills of buying and selling, etc., and to learn the method of collecting and analyzing the information

(2) You can set up an investment association on campus, where students who love to invest in stocks can communicate and learn together, and cooperate with off-campus securities companies for a long time, inviting investment and financial experts to hold regular lectures on campus to bring the latest information on stocks and teach students how to analyze, screen, buy and sell stocks, etc.

(3) You can also set up an investment association on campus, where students can communicate and learn together.

(3) In normal times, college students can use stock trading software to screen and analyze stocks and conduct simulated trading, which not only avoids unnecessary economic losses, but also learns the knowledge and skills of stock investment, and does not affect classroom learning as much as possible.

(4) Set up an interest group to pool funds for actual combat. Set up an interest group, each with a small part of the funding, the development of an investment management agreement, and according to the agreement for the division of labor and cooperation, the development of investment plans, operating strategies, sharing of profits and losses, exchanges and summaries, and so on. In this way, each person contributes less, even if the investment fails, but also not to seriously affect the life; we share the work, each person spends less time; at the same time, not only can exercise the spirit of collaboration, to cultivate the awareness of the investment management, the most important thing is to be able to learn and improve the actual combat skills.

(5) The use of summer or winter vacation investment operation, this time in the school college students not only have enough time to analyze the market, research stocks, buy and sell stocks, but also get the parents of the financial support, but also do not have to worry about the cost of living.

In addition, in addition to the school guidance and training in the stock investment concepts and methods of college students, parents and society should also be concerned about and guide the formation of the correct concept of stock investment in college students, to let college students understand: the main purpose of investing in stocks in school is to learn more theoretical knowledge, learning to analyze and problem-solving methods, to cultivate all aspects of the ability to improve the quality of psychology; investment in stocks is not a simple speculation, but rather, the investment in stocks is not a simple speculation, it is the most important thing to do. The stock is not a simple speculation, but an investment; the pursuit of interests is divided into stages, college students should not put the pursuit of money in the first place, to study the main, to avoid the formation of some college students, such as gold-worshippers.

4 Conclusion

College students in the school stock investment has advantages and disadvantages, society, schools, parents, students should objectively look at this issue, correctly guide the behavior of college students stock investment, voting investment in college students should also be in the time, money, learning, investment and other aspects of the comprehensive planning, reasonable arrangements.