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  #1  
Old 01-23-2006, 11:35 PM
Joe_d72 Joe_d72 is offline
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Default If you had 100,000 dollars to invest What would you do?

I have a class where we are given money in a investment simulator and I need to invest 100,000 of it by Thursday. I can invest in Stocks, equities, bonds, futures and International Equities. Any suggestion on where I should put some money would be great.
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  #2  
Old 01-23-2006, 11:45 PM
Ed Miller Ed Miller is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

What's the goal?
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  #3  
Old 01-24-2006, 12:09 AM
Joe_d72 Joe_d72 is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

The goal is to get the feel of investing and selling in the market we have to make over 50 trades in 6 months. The person in the Class who makes the most money gets Points added to the final.
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  #4  
Old 01-24-2006, 12:29 AM
Acehawk74 Acehawk74 is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

For the record, I just want to say I'm not sure I like this professor's policy in that regard. Obviously the goal is to learn the 'feel' of investing, but I would think a more accurate application of investment concepts that you learn in this course would be a better gauge of how "well" you did. The instructor cannot possibly expect you to construct an efficient portfolio yielding returns that would make fund managers jealous. Just my two cents on how the points should be awarded. That being said, this is an excellent exercise for you, and you should utilize it. Yahoo Finance is an excellent source, and besides providing you with ideas to consider, watching a network such as Bloomberg/CNBC etc... will signifigantly help you understand how things occur on a day to day basis. Get the Wall Street Journal, and go research some companies, then try to come up with some ideas for companies to invest in. Good luck, and I hope you enjoy this simulator.
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  #5  
Old 01-24-2006, 01:00 AM
Paul2432 Paul2432 is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

[ QUOTE ]
The goal is to get the feel of investing and selling in the market we have to make over 50 trades in 6 months. The person in the Class who makes the most money gets Points added to the final.

[/ QUOTE ]

What your are describing is trading not investing. If the professor is charging commissions on trades, I would expect pretty much all of the class to finish with less than $100K.

I just reread that the person with the highest return receives extra credit on the final. If there is no penalty for losing everything, you might want to concentrate on futures or other derivatives. They'll give you the best chance for a big score.

Oh one other thing. I would study the rules carefully. There may be some loopholes that let you "cheat" depending on how the actual buy and sell prices are determined. For example, if your purchase price is the closing price on a particular day and there is positive news released after the market closes, or significant afermarket trading, you may have a chance buy with a guaranteed profit.

Paul
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  #6  
Old 01-24-2006, 01:09 AM
KaneKungFu123 KaneKungFu123 is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

im guessing its highschool
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  #7  
Old 01-24-2006, 01:43 AM
Ed Miller Ed Miller is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

[ QUOTE ]
The goal is to get the feel of investing and selling in the market we have to make over 50 trades in 6 months. The person in the Class who makes the most money gets Points added to the final.

[/ QUOTE ]

So the goal is to have the most play money in June? Is there any reward for second place? Is there any penalty for last place? If not, then you want high risk/high reward stuff... you want something with a major chance of leaving you broke, but also a decent chance of a big score.

FWIW, that's generally a terrible way to invest in "real life," so your professor has set up this game in a way that promotes poor choices and teaches the wrong lessons.
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  #8  
Old 01-24-2006, 03:00 AM
KingNeo KingNeo is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

Making 50 trades in 6 months is not investing.

That is called speculative trading. Another synonym would be gambling.
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  #9  
Old 01-24-2006, 06:26 AM
Dazarath Dazarath is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

Most of these stock market games have delayed prices of 20 minutes..
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  #10  
Old 01-24-2006, 09:26 AM
fflaque fflaque is offline
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Default Re: If you had 100,000 dollars to invest What would you do?

actually its not if your pyramiding
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