Stock Market Game
Our class will be participating in a national and state competition called the Stock Market Game where collaborative groups work together to research, choose and trade $100,000 worth of stocks, bonds, or mutual funds.
Sites for finding parent companies (beware- these are third party sites and may contain advertisements):
After the Session:
Based on what you’ve learned from participating in the SMG, what saving and investing advice would you give your friends and colleagues? AOL’s Daily Finance published a series of posts by Robert Pagliarini that shares financial tips from his favorite personal finance bloggers.
For example, he quotes J. Money from Rockstar Finance:
One of my favorite tips is to simply "take action." We get so caught up with thinking and researching and deciding on how to better our lives -- both financially and otherwise -- that often times we end up doing absolutely nothing because of analysis paralysis. So take a few seconds and decide on something right here and now, and then go and get started. You can always tweak things as time goes on (nothing's ever permanent)
Do you agree? Why? Why not? Did your team agonize so much over a particular trade that you ended up doing nothing? Did your team make a quick decision that ended up hurting your portfolio?
In his second post in the series, Robert quotes Patrick Curtis from Wall Street Oasis:
Don't get greedy. If you've been lucky enough to ride this wave up in stocks over the last five years, now is the time to start protecting yourself for a possible correction. This doesn't mean you have to sell out of all your best gainers -- LinkedIn (LNKD), Tesla (TSLA), Chipotle (CMG), to name a few -- since it's hard to predict how much is left in this bull market, but it does mean that you can put on some trailing stops on your biggest winners to ensure you are taking at least some chips off that table with a 5 percent to 10 percent drop.
What do you think? Is he right? What criteria did your team establish for selling a stock, bond, or mutual fund in your portfolio?