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NINE WEEKS ??? NINE WEEKS !!!
That throws most of the fundamentals such as looking for a good strong long term investment out the window. Most of the bigger companies I fear would move too slow. The gain might come in your 9 week window or the day after your contest closes. Even if you think oil and gas were going to skyrocket, it may not do so in 9 weeks.
IMHO thats a useless investment strategy and if this is part of a course teaches exactly the wrong type of lesson. ( unless they want to teach that investing in 9 week windows is silly ) Essentially with a 9 week window any stock is more of a gamble than usual. So if you are going for the fences, I would look for stocks whether its oil or gas, tech, medical whatever that has some big make or break event that will occurr in your time window. You know, the drug company with the big announcement coming type of thing. The problem is that it has to be uncertain enough that the stock will jump or crash on the news. If you could find 2-3 of these types of stocks, you could win if one of them rocketed in price even if one of your others crashed bad.
I don't have a particular stock to recommend since I would never invest in this manner. Personally I remain heavily invested in oil and gas stocks and my decision to do that about 8 months ago has been very happy news.
Oh and I didn't know what you mean by "cap limit " being 5 bucks-- Do you mean your "purchases have to be for stocks that are either greater than/less than $5 per share??
personally I would go small cap for the greater volitility -- stocks like Toyota might do greta but I fear that they are just too large ( although Japanese stocks may do well if you can ride the positive news of the majority election)
The Japanese election is a minor example of an event that influences markets. If you can consider other events that you know can influence the market, you could start betting on the outcomes of important world events
Two other questions
1. Are you allowed to trade as much as you want or do you have to buy and hold. If you trade a lot, do you have to factor in commissions or any transaction costs
2. Can you buy/sell options? That might be a way to cash in if you believe a stock is going to take a tumble
My approach is predicated on the idea that you don't care if you "lose everything" and also that some schmo will make a pick that will get him a 50% return
That throws most of the fundamentals such as looking for a good strong long term investment out the window. Most of the bigger companies I fear would move too slow. The gain might come in your 9 week window or the day after your contest closes. Even if you think oil and gas were going to skyrocket, it may not do so in 9 weeks.
IMHO thats a useless investment strategy and if this is part of a course teaches exactly the wrong type of lesson. ( unless they want to teach that investing in 9 week windows is silly ) Essentially with a 9 week window any stock is more of a gamble than usual. So if you are going for the fences, I would look for stocks whether its oil or gas, tech, medical whatever that has some big make or break event that will occurr in your time window. You know, the drug company with the big announcement coming type of thing. The problem is that it has to be uncertain enough that the stock will jump or crash on the news. If you could find 2-3 of these types of stocks, you could win if one of them rocketed in price even if one of your others crashed bad.
I don't have a particular stock to recommend since I would never invest in this manner. Personally I remain heavily invested in oil and gas stocks and my decision to do that about 8 months ago has been very happy news.
Oh and I didn't know what you mean by "cap limit " being 5 bucks-- Do you mean your "purchases have to be for stocks that are either greater than/less than $5 per share??
personally I would go small cap for the greater volitility -- stocks like Toyota might do greta but I fear that they are just too large ( although Japanese stocks may do well if you can ride the positive news of the majority election)
The Japanese election is a minor example of an event that influences markets. If you can consider other events that you know can influence the market, you could start betting on the outcomes of important world events
Two other questions
1. Are you allowed to trade as much as you want or do you have to buy and hold. If you trade a lot, do you have to factor in commissions or any transaction costs
2. Can you buy/sell options? That might be a way to cash in if you believe a stock is going to take a tumble
My approach is predicated on the idea that you don't care if you "lose everything" and also that some schmo will make a pick that will get him a 50% return
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