Stock Markets Exposed
Stock market game help?
I'm playing a stock market game for school and I have a few questions. If the stock is bad should I sell it or hope it gets good again? I know that when 20 ma is above 50 ma that the stock might trend up but when you look at a chart in 1 year and it looks like the 20 is below the 50 but then you look at it in 1 month and the 20 is above the 50 what one should I base trading off of? also one more question if 50 is above 20 thats means the trend is going down right? I know dumb question but no has told me?
Public Comments
- Here's what i did. Yesterday WINN ( winn dixie, a southern based grocery store ) stock went sub $16US, i bought $10,000US ( $5,000 out of my bank account and $5,000 on a credit card ) i'll sell when it hits $22.50US... I actually bought at $15.32US and purchased 632 shares. When I sell ( hopefully before the new year ) at $22.50 I should earn about $4220... not bad for 2 weeks "work". good luck
- I think you are focusing on too much technical analysis. Charting is best for SHORT-TERM trends. Yes, you can use charts for longer terms trends, however I think you need to look at the fundamentals of a company. 1. Are they making money? 2. Are they in a growing industry? 3. What is their competition? 4. What is their competitive advantage if any? etc.
- First, take "hope" out of the equation. If the stock is bad, look at the news, earnings releases, etc. and try to understand why it is bad. Do you see a reason for it to get good again within your time frame? Most (all) stocks are up and down. It is not unusual for the long term and short term charts to show a different picture. In general, use the long term chart to determine the invest-ability. Use the short term chart to determine the entry point. If the 50 is above 20 that does indicate the trend has turned down.
