We are playing this game on stocksquest.com and we start off with 100,000 dollars and I am wondering what company/ companies to invest in, the time span will be from now until December-ish. Should I go risky and day-trade or should I find a good steady company. Thanks for any assistance.
2006-09-28 15:21:33 · 8 answers · asked by ostyman09 2 in Social Science ➔ Economics
They say the best strategy is to pick six stocks at random (darts at the newspaper). Buy them all at once, allocating equal amounts of money to each, and sell them all on the last day.
You should beat all your classmates using this method. Pay no attention to the media or anything else for that matter. Do not research the random stocks, it will only scare you into selling at the wrong time.
2006-09-28 15:25:00 · answer #1 · answered by Pseudo Obscure 6 · 0⤊ 0⤋
Ah, I always used to love assigning this one to students. Here's how you'll get a good grade and make a good impression on your teacher:
When you write up your report, let your teacher know you decided to "diversify" your portfolio for the long term gain. He'll e impressed;
Invest in some blue chip stocks (go to this website to find out what those are)
http://www.dogsofthedow.com/dowcomp.htm
Blue Chip stocks are high-performers good for the long haul.
Invest in some popular stocks, such as Coca-Cola, PepsiCo, Microsoft, etc.
Popular stocks are fun to track, and make a good comparison to your other stocks. You can't go wrong with 'em.
Invest in some commodities (listed in separate section of the stock pages), such as pork bellies, corn, soybeans, etc. These, you'll need to keep an eye on as the prices can fluctuate.
Invest in some precious metals. The gold market has been doing VERY well the last few years. These are also listed in the commodities section.
Find out the stock listing of some local companies and corporations in your area. Showing support for local business will make you look like a mogul, and may be a good starting point for a later project.
Finally, since you've got a lot of money to invest. Find out if you can invest in treasury bills (a definite sure-thing for the long haul) or money-market accounts. These offer a high interest rate of return, and shows you know how money works.
One more thing, find out if you can pool your money with other classmates. If you have a portfolio that's doing well, getting others in on your trades will make you and your group look like movers and shakers. ;)
This portfolio will show your teacher that you're investing for the long run and your diverse portfolio will show you're taking some financial risks with good potential gains but with a wide safety net.
Good luck on your project!
2006-09-28 17:42:07 · answer #2 · answered by roberticvs 4 · 0⤊ 0⤋
Its called "value" investing. find companies that you think will make money in the time period (called your horizon). get on investopedia.com, research 12 stocks, across multiple sectors (you can browse by sector on investopedia). look for companies trading at a low multiple. (dear god dont invest in something with a multiple over 50)
that said, i think gamestop and best buy are gonna have a great holiday season.
DO NOT DAY TRADE. you dont have access to the information you would need for this to be a viable strategy.
pick companies that you think you would still want to own in 3 months.
and remember your goal is to get into a stock before everyone realizes just how much money they are going to make, and the price climbs.
2006-09-28 16:29:13 · answer #3 · answered by The Seitz 3 · 1⤊ 0⤋
From now until December is not an investment. that Is a trade or speculation as well.. to short term...
Over a 20 YEAR time frame nothing has beaten common stocks as an INVESTMENT..
as for as what to invest in
how many "day traders" are on the fortune 400 richest list.
also how many leveraged buyout people are there
and bond traders????
Real estate owner are there but not REIT investors hmmm..
Bill gates is still the riches person - own msft for how many years
where is warren buffet on this list- owed brk-a for how long
these people have something in common
they invest in "WHAT THEY KNOW AND UNDERSTAND"
why don't you do that?
.
.
2006-09-28 17:01:00 · answer #4 · answered by DM 4 · 0⤊ 0⤋
Don't day trade. Go with good companies that you like and want to follow.
Set a max loss for each of your purchases. For example, if you buy a $50 stock set a limit of loss you will tolerate, like sell if it goes down to $45. Just a random example.
2006-09-28 15:31:56 · answer #5 · answered by Zak 5 · 0⤊ 0⤋
I had to try this whilst i replace into in college. would not it seem greater desirable for you in case you picked a inventory for motives of your very own? think of of something you utilize universal. Who makes it? seem up that organization. then you definately could desire to have a private connection to it and it will propose greater to you as you preserve on with it and watch it improve (or decline). I did Bausch & Lomb (sp?) I placed on touch lenses. Then i found out they have been the makers of a water %. bypass parent! What form of toothpaste do you utilize? Do you save previous army, and so on.
2016-12-12 17:05:42 · answer #6 · answered by miracle 4 · 0⤊ 0⤋
i say if you work for a company life home depot invest in it put in a 401k
2006-09-28 18:24:22 · answer #7 · answered by liljov2 2 · 0⤊ 0⤋
Watch "Mad Money with Jim Cramer", he knows his crap with the stock market. It is on MSNBC every weekday evening.
2006-09-28 15:24:57 · answer #8 · answered by mr.mister 3 · 0⤊ 0⤋