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COMPLIMENTS OF MODERATORS
Congratulations on taking the first step to financial success!
Now, you are going to have a great time learning the ends and outs as well as the ups and downs of the stock market.
Each day, you will have an opportunity to join a moderated trading game where you will learn to buy, sell, research, trend, and maneuver through the often difficult and very intimidating web we know - or in many of our cases don't know - it’s called the stock market.
The tools and resources you will encounter, the experience, and habits you will form are invaluable. The confidence and feeling of accomplishment is the reward.
So let's get started.
Competition resource sites:
1. Yahoo Finance: Most use this site as homebase for research and market prices. Create a profile to save your info. Create personal portfolios, watchlists to store stocks you have found and/or buy.
2. Finviz.com: Another great tool in the area of research when trying to find stocks and stock news.
Don't limit yourself to these sites. Get out and read as many publications as you can. Find those that you like best. Learn the sites and where the info you need is kept on that particular site.
Here is a list of just a few more to get you started:
1. MarketWatch
2. Investor’s Business Daily
3. Reuters
4. CNBC
5. Barron's
Google "stocks" and a plethora of sites will come up to add to your list.
NOW TO THE GAME:
In the contest we are day trading/swing trading.
Google these terms so you can get a better understanding of what they are.
Google is a great source for learning stock market terms. Anytime you read or hear a term you don't know, go to Google and you can find out what it is.
Knowledge is power and this kind of power leads to success.
You will start the competition with $100,000 in your account. This amount will allow you to leverage the account with margin (not advisable in real world trading).
Margin allows you to leverage 50% of your account and buy additional positions.
The diversification rule, if selected, restricts a player from putting his entire account into one stock.
For example, if starting cash is $100,000, the player can buy $50,000 in the first stock and $50,000 on another.
Use all of your available funds in your account; money sitting still in your account is not "working for you".
The object of the game is to buy and sell stocks and gain profits. We are not trying to buy positions to hold for the entire month.
Each player will approach this from their own strategy, in a fashion that works best for them, given their availability to play throughout the day. The more time you have to invest in your learning, the more success you will have. Remember: Never think that you can't be successful with just a few hours per day. There is money to be made in the market every minute!
How does INVESTMENT DOJO work?
The app/site work at an approximate 15 minute lag (delay), or in real time (if selected).
The 15 minute delay is used for moderated games.
It’s like looking into the future.
So when the stock market has a stock price at $10 in the market, and on INVESTMENT DOJO it is $8, it will not reach that $10 price for approximately 15 minutes on INVESTMENT DOJO. This lag gives us a look into the future. It lets us know what direction a stock is going before it gets there in the game.
The object is to find stocks that are priced lower on INVESTMENT DOJO than in the market. You must then, buy the stock on INVESTMENT DOJO and wait for it to go up to the price you saw it in the market and sell.
The stock market is a living, thriving being. Prices are always moving and changing. Yahoo and other financial sites will update these prices every few seconds. INVESTMENT DOJO does not work this way. It updates its pricing about every 3 to 5 seconds. So the prices stay the same longer.
And you may not see the the exact same prices you see on Yahoo. The object is to sell as close to the price as you can. This takes time and experience to master. So don't be frustrated if you miss it or sell early. Move on and buy another stock. Experience will sharpen you in this area.
Now that you have a basis for how the game works, the real trick to being successful is in the research. Finding the stocks to buy. This is why having a working knowledge of your resources is so important. Knowing where and how to find the big movers is key. Learning why stocks move, the causes, the reasons - these are the insider secrets that unlock the profits.
Time to start out on your quest to find ‘The Unicorn’, that stock that will soar through the roof and make you a fortune. In order to make big profits you have to leverage the gains you find. You do this by acquiring as many shares as possible. So starting with $100,000 in your account, you should be looking for stocks in the $5 to $20 range. This will allow you to purchase 2,500 to 10,000 shares of a single stock. Remember: We are trying to make the quick $$$. So get in, get out, and make your money then move on to another stock. The best strategy is to buy and sell over and over again, often buying and selling the same stock several times.
So starting out, the best way to work is by opening two screens or windows. One will contain INVESTMENT DOJO app, open to the game, and the other will be your research site, like Yahoo finance.
Familiarize yourself with these sites - where and how to find what you need. The easier you can get around, the more efficient and successful you will be.
Go to Yahoo Finance, start by simply clicking your mouse in the search bar. A drop down box will appear. It will have trending at the top, followed by five ticker call signs below. Start by looking at each of these stocks and comparing them to those in the INVESTMENT DOJO app. Remember: If they are not in your price zone, move on. As you increase you account value you will be able to start looking at bigger stocks, and but for now stick to those you can work with ($5-$20).
The next place to look is below the search bar - there are several tabs. Move your mouse over the Markets tab. A drop down box will appear. Tabs such as Trending Tickets, Most Active, & Top Gainers are great resources. Click on the Most Active tab to start. This will give you a list of stocks.
At the top of the list there are headers - Symbols, Price, Price Change, and % Change. Click % Change once and it will reorder the list showing the highest losers in red; hit it a second time and it will all turn green showing the biggest gainers. Start comparing these next. Remember to stay in your price lane.
Next is Finviz.com. This site is a great place to start in the morning before the market opens. On the Home screen there is a News tab - it will give you a list of many articles from a great range of publications. Often, those insider tips can be found by reading what the analysts are writing - what stocks were jumping, which ones fell, new acquisitions or collaborations, analyst upgrades or downgrades - these all have an affect on the market. "Get In The Know!!!"
Finviz also has a stock screener page. Navigate there and click in the signal box (top center), then a drop down will appear. Click Unusual Volume. This will populate stocks with volumes that are unusual from their normal trading amounts. This is also a great source of stocks.
Each of the thousands of publications has lists of their own when it comes to movers, gainers, and losers. There are thousands upon thousands of publically traded companies in the market. There are 11 different sectors, so each publication has different selections.
Also, these publications usually have analysts that give their predictions on stocks. Follow the news, then watch how the stocks react to the news. You will begin to see subtle trends in these reactions. These are all the bread crumbs that can lead to that most sought after ‘Unicorn’.
Remember: Your resources are your lifeline. They will provide the clues and hints to be successful. So reach out to your moderators and get the inside scoop. Each of us have a unique approach to the game - we all see it a bit different, so make sure to pick our brains for that information.
And lastly and most importantly…
Remember: This is for your improvement, so get out there and give it your all. Have some fun learning something that may very well, not only change your life, but the lives of your family for generations to come…