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Stock Market tips?


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I have an assignment for a Finance class to invest a fake $1 million in the next 7 weeks. The idea is just to learn the ins & outs of investing, so making or losing $$$ doesn't really matter. However, I'd like to "win" anyway. I wanna treat like a Wall Street FF thing.

 

Anyone have tips on stocks, companies that have something big pending that could send their stock up, options, commodities, gold, puts, short sells, etc.???

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I have an assignment for a Finance class to invest a fake $1 million in the next 7 weeks. The idea is just to learn the ins & outs of investing, so making or losing $$$ doesn't really matter. However, I'd like to "win" anyway. I wanna treat like a Wall Street FF thing.

 

Anyone have tips on stocks, companies that have something big pending that could send their stock up, options, commodities, gold, puts, short sells, etc.???

One word. Plastics.

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The best way to win one of these things is to put all $1M into one small cap, low dollar stock. It doesn't really teach you much because it isn't like you'd do this in the real world but this will give you the most volatility, some of which will hopefully be upside volatility. Alternatively, you could put it into a Chinese company like Chinese Security and Surveillance (CSCT) or Zhong Pin (ZHNP) and hope something happens on a macro basis that causes these companies to surge. 7 weeks is a pure crap shoot.

 

EDIT:I didn't notice that you could trade commodities, so I guess you could probably trade futures as well. I'd lever the $1M up to the max allowable and go long some currency you think will appreciate in the near term.

Edited by geeteebee
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The best way to win one of these things is to put all $1M into one small cap, low dollar stock. It doesn't really teach you much because it isn't like you'd do this in the real world but this will give you the most volatility, some of which will hopefully be upside volatility. Alternatively, you could put it into a Chinese company like Chinese Security and Surveillance (CSCT) or Zhong Pin (ZHNP) and hope something happens on a macro basis that causes these companies to surge. 7 weeks is a pure crap shoot.

 

EDIT:I didn't notice that you could trade commodities, so I guess you could probably trade futures as well. I'd lever the $1M up to the max allowable and go long some currency you think will appreciate in the near term.

 

Huge crapshoot.

 

If you want to take a bit of a diversified approach to this, then (say) divide the pie up into 5-10 equal-ish pieces, and buy call or put options on futures ... even more leverage than the futures themselves ...

 

The next most conservative thing to do is to buy penny stocks ... and, since this is theoretical, you can short penny stocks too (but that's a silly game and unimplementable in real life) ...

 

The next most conservative thing to do is to play the game as it was intended. Buy 5-10 stocks and see what happens.

 

Regardless, the winner of a seven week contest could have played "throw a dart"...no information will have been learned by anyone about whether or not the winner has a clue.

 

PS - I played this type of game once with a friend of mine; I kicked his butt by trading options and very low priced stocks (i.e., those under $1)...futures weren't a part of our head-to-head game...

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kramerica has much more exciting stuff on the near horizon ... something about a big ball of ink.

 

just watch out, i heard the ceo is a racist.

Rumors are he also hangs out with virulent anti-Dentites.

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New small cap IPO a couple of weeks ago. It started at $5.20, but has been as high as $12.95 this week. Chinese company that is controled 51% by americans, and they have invested millions in this company for expansion next year. Listed on AMEX, the name of the company is China Direct (CDS) and they are in the magnesium production business. Just my pick of the month.

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I would dissect the top ten holdings of the five best performing Natural Resources Funds on the street. Go to Schwab and research them. I would then place my bets there. I have averaged 63% over the last 3 years or so playing the Natural Resources game. But, that tip on the Chinese companies is good as well...but be very selective...any news that is breezy negative can send those stocks tumbling. Best bet is Natural resources....I also like Haliburton. And if you are at a total loss....watch Mad Money with Kramer for a few ideas. He is annoying at times...but I have made some cash off his research.

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