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  #1  
Old 10-09-2007, 03:36 PM
foxfox1 foxfox1 is offline
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Default 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.
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  #2  
Old 10-09-2007, 05:05 PM
SlowHabit SlowHabit is offline
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Default Re: Practice Investing Competition

Are you allow to buy options?
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Old 10-09-2007, 05:14 PM
Noodles. Noodles. is offline
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Default Re: Practice Investing Competition

To short sell and buy with that cash?
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Old 10-09-2007, 05:16 PM
DcifrThs DcifrThs is offline
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Default 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
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  #5  
Old 10-09-2007, 06:36 PM
maxtower maxtower is offline
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Default Re: Practice Investing Competition

You should probably talk to Shoe about this. [img]/images/graemlins/smile.gif[/img]
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  #6  
Old 10-09-2007, 08:44 PM
jumbojacks jumbojacks is offline
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Default 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!
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Old 10-09-2007, 10:14 PM
RarocASP RarocASP is offline
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Default Re: Practice Investing Competition

Strategy should vary based on the number of people in the competition
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  #8  
Old 10-10-2007, 12:28 AM
SlowHabit SlowHabit is offline
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Default Re: Practice Investing Competition

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

[/ QUOTE ]
QFT.
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  #9  
Old 10-10-2007, 01:24 AM
Preem Preem is offline
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Default 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.
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  #10  
Old 10-10-2007, 01:37 AM
Jimbo Jimbo is offline
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Default 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
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