Snappy Loses
Snappy is enthusiastic about his shares in Skunk’s Perfume Company, and is starting to appreciate the varied scents that Skunk produces. Once you get used to them, they aren’t so bad!
Snappy Loses
Snappy noticed that Owl installed a sign above his bank’s door that displays the stock prices of the various forest businesses. A group of field mice are kept busy changing the sign frequently as the stocks’ value goes up and down.
Snappy Loses
Noticing the stock price for Skunk’s Perfume Company listed as going up, Snappy thinks that maybe he should sell some of his shares in the company and take a profit from this price increase.
Snappy Loses
Once he sees how much profit he made from selling the shares, he realizes how fun it is to get more nuts without working for them.
Snappy Loses
Then, Snappy notices that the price of shares has gone down, so he decides to buy more shares. A few days later, he sees that the price has gone up again, so he sells again and gets more profits. What fun this is!
Snappy Loses
Snappy begins to watch the stock ticker sign all day, and buys and sells as the price moves down and up. But one day the stock price drops and doesn't come back up at all.
Snappy Loses
Snappy realizes that trading all day, called “day trading”, of course, only works when the market is going up.
Snappy Loses
Then Snappy is told by Owl that he must pay a few seeds to Owl each time he buys or sells a stock. This is called a “trading commission” and he learns that a substantial part of his profits actually goes to pay the commission.
Snappy Loses
Snappy is discouraged at seeing almost all his profits lost by paying this commission. He is upset at himself for having spent so much time concentrating on one stock’s ups and downs.
Snappy Loses
Maybe it would be smarter not to spend all his time and nuts buying just one stock. Maybe he should look at a combination of stocks.