My son started a Stock Market challenge today at his Middle School. Last night we bonded over discussions about “finding vulnerable short sellers in order to insert their balls into a vise” as well as “finding out what all the idiots around you are doing, then betting against them” and also my preference for “Chinese Burritos” when picking out sound companies to invest in.
He told me that his teacher was a self proclaimed master at financial markets. His rule sheet clearly illustrated this fact. Here’s his teacher’s tips to trade:
Trade What You Know – Since most know very little, this is a terrible starting point. He’d be knee deep in Nike, Sony and Doritos.
Tools to Live By: Apply a fast stochastic to your stock chart and look to buy under 20 and sell above 80. – Sounds legit.
He stated many times to look for high beta as well. This criteria has to be set to a value of 2 or greater.
There were a few other suggestions, but I crumpled up the paper and told him that we ought to “make our own rules and try to beat up your teacher.”
He gets a 500K portfolio, and a one month deadline.
What I want to know is…How would you position your kids portfolio?
I started him with a pool of 10 stocks – but five essentials to start on today. These five stocks inculde: $SHLD, $TWTR, $DEPO, $CMCM, $MEET. My five reserves were $ADXS, $WTW, $LL, $PI and $TAHO.