Practice Investing Competition
 

My little sister is in a competition in high school. The competition ends the 2nd week of December. They're going to get $25,000 in play money to invest and the one who's portfolio does the best gets a $250 gift certificate. So, it's an all or nothing thing. They need to pick 5 different stocks. Please post your thoughts on stocks that will have a lot of volatility to give her a real shot at getting the most improvement in her portfolio.
They are allowed to buy one bond and one index fund, but the focus is on most gains.

Thanks a lot.

Re: Practice Investing Competition
 

Are you allow to buy options?

Re: Practice Investing Competition
 

To short sell and buy with that cash?

Re: Practice Investing Competition
 

what are the rules?

you say "they need to pick 5 stocks" and "they can pick 1 bond and an index fund?"

exactly what can and can't they buy with that 25k?

Barron

Re: Practice Investing Competition
 

You should probably talk to Shoe about this. [img]/images/graemlins/smile.gif[/img]

Re: Practice Investing Competition
 

Sometimes the teachers might use older data to pick the prices. That's how I won my competition. Short sell -> use cash to buy options. Time machine FTW!

Re: Practice Investing Competition
 

Strategy should vary based on the number of people in the competition

Re: Practice Investing Competition
 

[ QUOTE ]
You should probably talk to Shoe about this. [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]
QFT.

Re: Practice Investing Competition
 

With that short a time frame, you can probably use a momentum strategy.

EWZ (which is an exchange traded fund), LUK, SILC, LVS, VMW.

Re: Practice Investing Competition
 

If the contest begins tomorrow I suggest she buy some of the least volatile stable stocks stocks available, one cheap stock with a lot of upside potential and 1 gold stock. This should keep her account about break even while all the other contestants will most likely lose money. I will offer her three picks, one which will provide little to no gains and one that might skyrocket if the merger occurs and a gold stock.

MSFT and SIRI, for the gold stock I like either ABX or AUY.

Good luck to her,

Jimbo