Any tips to win in stock trading, bond trading and mutual funds in simulation games? Kindly share with me I am doing it for my class.?
My grades depend on this and I have no idea wth is going on. Tried long and short stocks but I always end up losing money than making profit.
- 5 years agoFavorite Answer
Rule 1) Read everything you can possibly get your mitts on about investing, so you know what you're doing......... not just investing websites like Yahoo Finance / The Motley Fool (fool.com) / Telegraph Finance / Investopedia, etc.... but proper books on the topic such as
- "Investing for Dummies"
- "100 Baggers"
- "The Naked Trader"
- "The Intelligent Investor"
- "Security Analysis" (Ben Graham / David Dodd)
- "Penny Stocks for Dummies"
You can get 'em all in preview format from Amazon's kindle store
Rule 2) Research what's going on in the markets by visiting "Digital Look", where you can get many tools to help you, including stock screeners + heat maps showing you what's doing well and what's doing pants.
From there you can click on the company names to get further information... the most important one I find is "Financials > Concensus forecast".
In "Summary" view of the main index another thing worth looking at is the "broker recs"...... where you need it to say either "Underweight", "buy" or "strong buy".
Another good spot for research is the Motley Fools CAPS game at http://caps.fool.com/ where there's a large community of people trying to guess which stocks will outperform the market, and which will bomb-out big time........ and there's also space for them to say why they think the value will go the way they think it will.
Rule 3) Develop the patience to leave the stocks alone, and go REALLY long on them, except in circumstances where there's negative news about the company (e.g. the #BoycottTarget hashtag on twitter) that means the price is going to bellyflop big-style, so you'd best be get shot of them A.S.A.P
- Anonymous5 years ago
Then you've already learned a valuable lesson: why most people who try to "trade" stocks end up losing money - for real. What is the objective of your class exercise? If it's to try to make a quick imaginary profit, they're teaching you the wrong lesson. Mutual funds, in particular, are unsuitable for "trading." They're intended for long-term investing.
- 5 years ago
Make more money than the other competitors.