Wait until mad king george leaves office - it's very volatile right now.
Peace!
2006-07-31 17:40:45
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answer #1
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answered by carole 7
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First, understand that the only sure way to "win" the Stock Market Game is to win educationally, by learning about economics, markets, and personal financial skills that will help you manage your money better!
But let's say you're focused on getting a higher portfolio value in the Stock Market Game. That's a lot of the fun of the competition, after all. Here's what you do:
* First, understand that the Stock Market Game is different from investing in real life. In real life, you're investing real money, usually for long-term goals such as paying for education. In the game, you're investing play money for a 10-week payoff. The importance of this: You have to take a lot of risk to win the Stock Market Game.
* Second, make sure you invest all, or almost all, of your computer money. Cash can't match the return available in the market, so don't leave your money in cash balances.
* Third, look for stocks that are likely to go up and down a lot. Older, more established companies are not usually as good for this as are newer companies. High-priced stocks usually move around less than low-priced (below $10/share) stocks. When a company is mentioned as a takeover target, it may see major swings in its price. Buying that stock is risky, but you have to take risk to win in a 10-week game.
* Fourth, don't be too late. Stocks move very quickly in response to news, so don't count on making any money on something that happened last week.
* Fifth, check carefully for errors before submitting your trades. If you're playing with paper scan forms and your trade is kicked out, you'll have your money tied up in zero-return cash rather than the stocks you picked. If you're playing the online game, matters aren't so bad -- but it's better to get it right the first time.
* Sixth, don't buy too many different stocks. The more different stocks you own, the more likely it is that you'll earn just about the "market" rate of return. But to win the game, you want to beat the market, not match the market.
* Seventh, hold the winners! If you have a stock that has made large gains and the end of the game is approaching, do not sell the stock. You will be charged a commission on the sale. But if you just leave the stock alone, its full value will be counted in your portfolio at the end of the game.
* Eighth, read the first principle again! The game is not like real life, so remember to buy and hold sound investments when you're investing your real money.
2006-08-01 00:41:35
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answer #2
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answered by Sarath M 3
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The biggest mistake people make in the stock market is that they sell their winning stocks quickly to take a quick profit, but they hold on to their losing stocks for a long time, hoping they will go back up. That is a sure recipe for disaster. You have to do the opposite: hold on to your winning stocks, and cut your losses quickly when you buy the wrong stock.
But it still boils down to gambling. The only thing approaching a sure thing in the market is to buy solid stocks (such as the S&P index or the Dow) and hang onto it for 30 years or so. Despite lots of ups & downs along the way, that almost always turns a profit in the long run.
2006-08-01 00:49:32
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answer #3
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answered by george 7
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Well, it is a game kinda. You need to not be scared off if your stock falls abit, but know if your stock will keep going down. know the trend, know where people will put their money. its like a while ago, Apple was the olace to put your money, because the Ipod was released. people love music, its whats hot right now. you just have to be one step ahead of everybody in knowing what the next big thing will be. dont neccessarily only get stock in what you like, take a survey, ask people what teens are into these days.
2006-08-01 00:42:20
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answer #4
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answered by zelda17me 2
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I've been trading for a while and I've been averaging 80% a year for the past 5 years. What I do is buy low sell high but I also move from hot sectors to hot sectors ahead of the crowd.
2006-08-01 00:48:25
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answer #5
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answered by no1special 5
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Diversified
2006-08-01 01:06:51
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answer #6
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answered by Chicagoan 2
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Insider trading.
2006-08-01 00:40:45
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answer #7
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answered by Leesa 5
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Beat the crowd.
2006-08-01 00:40:21
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answer #8
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answered by overseas and broke 2
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Do thorough research before jumping in.
2006-08-01 00:40:43
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answer #9
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answered by gdind 2
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buy low, sell high
there is no magic formula that works everytime. dont listen to anyone that tells you one. if it was simple, everybody would be rich.
2006-08-01 00:39:45
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answer #10
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answered by Anonymous
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