i've been buying in the game several of the "top gains " stocks as reported by the asx site. i made some great wins in the game, but also saw some bad losses on other weeks. what do you think of this strategy:
diversify through buying eg. 6-10 of the "top gains stocks". (buy them as they are reported on the website or soon after)
eg. $2,000 each (might start at $500 first)
sell when they go up a good amount - eg.5%-30%
LEAVE bad stocks alone. let them go down. eventually after some time (could be 1-4 months) they'll go back up again.
focus on picking stocks that show prices cycled up/down in the last few months.don't get something that has a steady long term down trend. use volatile stocks for this.
what do you think? in the game i locked out some heavy losses, but if i look at the price charts of these stocks, quite a few come back to positive values or at least break back to zero. my strategy would be to diversify and sell off the good stocks and buy new ones to replace them and as for the bad stocks, to simply wait - could be a month or 2 before they roll over positive again. i'm thinking this might work.
and are there any other "no brainer " strategies that would help someone gain some money.obviously this isn't as good as professional day trading but i would be delighted to get something positive out of it. might be better than long term investing on blue chip stocks