Stocks

As I stated here, my portfolio has consistently outperformed the Dow Jones Industrial Average, a common barometer of American stocks. So, what is a good strategy to make money in the game?

Diversify (with ETF's)!

I'm sure by now you know what diversity is. In stocks, the definition is similar, and it is just as important. Diversity within your portfolio means you aren't spending all of your money on one stock, market cap size, or industry. There are some quick and easy ways to diversify your portfolio. The first and easiest way to diversify is to take advantage of ETF's. An ETF is an Exchange Traded Fund. They are traded just like stocks, but are really a combination of stocks. Some popular ETF's track the indexes, like some that track the S&P 500, Nasdaq 100, or Dow Jones Industrial Average. There are also some other ETF's that track specific categories of stocks. There are ETF's for different industries, for example there are many Tech ETF's.  Now you have a basic understanding of what an ETF does and how to get one. Now, what one should you start with? The very first trades I made were purchasing shares of SPY, QQQ, and DIA. SPY tracks the S&P 500, and has gotten me about 2% return; QQQ tracks the Nasdaq 100, and has made me roughly 0.5%; DIA tracks the Dow Jones average, and has been up and down over the last few weeks. These symbols will not get you to 6% in a couple weeks, but they are relatively low risk investments.* 

Do research!

Just because you see a symbol for a stock you recognize does not make that stock a good buy for you. We've all heard of names like Tesla, American Airlines, Apple, Ford, and more. As a matter of fact, I have not owned any of those stocks as of 3/8. Before investing, do a little research. Websites like Nasdaq (yes, the exchange has a website, and yes, it's very useful), TipRanks, CNBC, and even the game itself offer Analyst Research and technical analysis that can give you a little insight into a company. If the real experts don't reccomend you buy a certain stock, I don't reccomend buying it. There are hundreds of stocks rated as "Strong Buy" on the market, so using a screener like the one on Nasdaq's website can help you find a great stock to buy. 

Need more personalized advice?*

Send me an email at cortan28@npsd.org. I'm not going to give you my entire portfolio, but I can share easy strategies that are proven daily on Wall Street. 

*All 'advice' is intended only for use by students participating in the Stock Market Game. Please do not use my tips with real money before carefully considering all of the risks associated with investing. I am not an expert on Wall Street, but I know more than most teenagers about the markets.