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Any good strategies to survive in a stock trading game?
Our performance and rank in the stock trading game will be the basis of our grade in our Finance subject. What should be kept in mind in buying and selling stocks? Any strategies in choosing a stock to buy? And sell?
Help please.
9 Answers
- Anonymous10 years agoFavorite Answer
I think you are asking the wrong question. The question you should be asking is how to win a stock picking game!
Remember the key principals of modern portfolio management is that risk and reward fall along a sloping line. While it’s possible to find opportunities that present a higher reward than the risk they present relative to the market these opportunities get cannibalized quickly. As such, the best way to get a high return on your fictional portfolio is to take on a lot of risk!
While in real life most wouldn’t do this because they would be afraid of losing their hard earned money, you lose virtually nothing by tanking a virtual portfolio (so the risk of the stocks may be high but the risk to your wealth is low). On the return side you have the potential for all of the accolades and potential prizes that come with winning which is similar to the upside of the actual underlying equities.
Here you have a situation where the derivative portfolio you are trading (your contest paper money) has the same upside but a lower down side than the underlying assets (the money you would lose if the real securities tanked). The way you play this is by taking on lots of risk!
You have not gone into the types of securities you can trade but from what I’ve seen in these people usually do well buying leveraged assets (a way to increase your risk and return pro-rata). Examples of these are the double VIX (TVIX) if you want to bet on volatility the next day or levered ETFs up to 3X (http://etf.stock-encyclopedia.com/category/leverag... if you want to bet on the market (or a sector) moving one way or another the next day. The easy way to do this of course if to buy stocks that you think could move the next day because they have been down for a while or they just went down the prior day. A shorting strategy (ie. buying puts) can work if you think a stock will go down the next day for the opposite reasons.
In summary, you can win a stock picking game with leverage and risk! (Don’t try this with your own portfolio or you’ll end up dealing with what these guys dealt with (http://www.bestbooksontrading.com/2011/08/quants.h...
- Anonymous4 years ago
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Source(s): Automated Binary Trading http://netint.info/AdvancedTradingTechnology - 10 years ago
What you should really do is write a long report on how fundamentally stupid it is to teach kids that investing with as short of time frame as 1 class makes any sense in the first place. While I know you won't do it the fact is that any teacher that thinks investing over the course of 2 semesters and making money is teaching kids about investing should be FIRED.
Your teacher obviously doesn't know enough about investing to be teaching the class in the first place ...... However you still need to do what he \ she says ..... The funny thing is you can win on both fronts, I can PROMISE you, you will be better off over that time frame by not investing at all .... stocks are going down and if you are required to buy and hold\trade and not allowed to short, you will have more money doing nothing than everyone Else or most everyone else. and in the end you can point out that your reasons were not only that we are in a slowing economy and investing in a slowing economy is stupid but that investing with to short a time frame is not investing at all it's swing trading or gambling. .....
I know you probably would believe your teacher over some anonymous person on the net so ask around a little bit, your parents, ect. And you will see the whole excersise is exceptionally stupid from the outset. Stupid in the sence that learing how to pick stocks is a good idea but without enough time to show that it works it's all based on luck rendering the whole excersise foolish.
NO credible money manager would tell you to invest in stocks with money you planned on spending in 6 or so months. and NO credible money manager would tell you a 6 month track record of investing means ANYTHING let alone something as important as the grade that is supposed to reflect how much you learned about investing.
What your teacher is really doing is NOT giving a good grade for learning but giving a good grade based SOLELY on LUCK ,,, because the investment time frame is to short..... pretty horrible teaching by any sensible measure.
- 5 years ago
Trading binary options online is not as complicated as many people think it is. Read here https://tr.im/oR7MQ
You don’t have to be an economics expert in order to make money by trading binary options. The charts allow you to predict the future course of an asset by finding patterns in its past price movements, and after all this what we need to win a binary trade.
Don't be intimidated by the charts, actually they are not that hard to read and understand. Strategies that are based on reading and analyzing charts are part of the technical analysis area.
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- Anonymous10 years ago
Richard's critique of the instructor is not going to help answer this question or get you a good grade.
Aim for a comprehensive education while simulating. An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf.
Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It's a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O'Neil too--he's the founder of IBD.
Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.
Source(s): Investing since 1987 - ?Lv 45 years ago
i've got commonplace lots of folk who made thousands and thousands in digital buying and advertising that would no longer circulate that to the real markets. this is because of the fact there is an emotional element which will become in touch whilst the money is real. i think of that the factor to do is to go into the real markets and purely play 10% of your account at all people time. Use a solid buying and advertising plan and not in any respect permit a play develop right into a huge loss. One would desire to constantly end out of a place at no greater beneficial than a 10% loss.
- Anonymous6 years ago
the best trading software http://tradingsolution.info/
i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.
if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.
- Anonymous10 years ago
Strategies always good but most of people never follow it and make loss.
- 10 years ago
hint to successful stock trading:
buy when price is low and sell when price is high.
and hope that you can get lucky enough to know exactly what dates the lows and highs fall on