Samarth Pasala

Simplified market for young investors.

Started Aug. 20, 2021

Abstract or project description

Abstract: Many people in the world are into the stock market as they see it as a way to make passive income both in the short and long run. However, many people don’t have the time to sit around and watch the stock market daily. This is why people such as stockbrokers and financial analysts exist, but they are expensive. Taking this into account, creating a potentially free application that analyzes the stock market in real-time and provides the user with easy-to-understand and valuable information on specific companies can significantly help them for a variety of reasons. People can easily save money, for starters, as they won’t have to invest in people who help them with stocks. Additionally, they won’t have to spend hours analyzing the market as the application will tell them if it is a good idea to invest or sell. So, this research being conducted around a distinct question matters because it will be able to make the stock market more accessible to people in the sense that they won’t have to spend time analyzing it, but rather just access a reliable application that gives them everything they need to make a decision. Overall, I hope that this research and project development allows me to help people make money off the stock market long-term without spending hours watching the constantly changing stock market.

How the Code Works: For this specific application, the method used is taking in user input of how much they have to invest, how okay they are with risk on a scale of 1 to 100 (1 being not wanting risk and 100 being completely okay with risk), and if they want to make a short or long term investment (short-term being 5 years and long term being 10 years). Based on this input, the program will generate a list of three companies that the user should invest in to achieve the best return. The program will generate and produce three graphs of the company’s historical stock growth, which is imported from Yahoo Finance so that the user can visually see the investment they are making. Additionally, the program will do some calculations in the background and present the user with an estimate as to their expected return and how much money they should expect to have in both five and ten years. The output to the code will give the user their return rate and expected return for both the short and long term so that they can see the impact of investing for the short and long term and make the decision for themselves.

Findings: To quickly summarize what the outcome of my research was: I found that if people were more okay with risk, they would want to invest more for the long term. This led me to decide to recommend major stock companies such as Apple for them to invest in because that is what would allow them to maximize their profit in accordance with the risk level. Additionally, I found that people that were not as keen to risk would want to invest more in the short term. This led me to decide to recommend more bonds and index funds to them so that they could get the best return possible.

Further Research/Code Development If I were to further develop this code, I would use portfolio theory to determine how much money a user should invest in different stocks so that they can attain the best return for the lowest amount of risk and protect themselves against the unpredictability of the stock market.