As of December 3, 2014, our portfolio ranked #3 overall with $103,639.82 3.64% in return with only 5 trade. You might think we are lazy to put effort into the stock simulator. This is not true because we had a strategy behind our action. Most teams pick stock with fundamental analysis (P/E or debt-to-equity ratio etc.) buying lots of different company stock and diversify the risk of losing money. But this is not the case for our team, we pick stock based on our personal interest. For example, some people like using Windows computer while others prefer Mac computer. As you can see, we made a lot of money on EA (23.96% return as of December 3, 2014) we were both interested in the entertainment industry and we decide to go with it. (I ensure you we are not a huge gamer!)
I believe buying stock is like choosing something you interested or familiar with. Otherwise, you are gambling your money because you are buying something you have limited knowledge and not familiar with the industry.
Before our first trade, I first defined our objective. Instead of making the most return, “Don’t lose money” is our #1 rule because we are winning as long as we don’t lose money. For this reason, we only buy stock that we believe it will growth within the 3 months period. KMB is our first stock that we bought. We bought it at $105.83 and is now selling $114.7. I like KMB long time ago because its steady growth trend had lasted for the past 3 years. The reason why KMB can growth steadily is because it is a defensive stock, their volatility are considerably low compare to technology stock.
In deciding the timing to buy a stock, instead of calculating all the ratio and reading all related news. I look at the 3 months and 6 months chart. The simulation start from mid-September to late-November which mean the stock price are unlikely to rise above or fall below the 3 months/ 6 months