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.
WWYD?
These contests are won and lost by lotto ticket luck. Find garbage that could squeeze within the month and hope your son gets lucky. 7% one month return isn’t going to impress his classmates, the kid that picked one stock and had it triple will.
All those stocks are incredibly high short interest. Powder Keg portfolio.
I guess I saw a few big market cap names in there like shld and twtr. I was thinking smaller market cap so that the market couldn’t possibly absorb the buying. Any heavily shorted biotechs have major news releases or earnings before the deadline?
SHLD is going to unleash fury soon. Heavily shorted.
TWTR my favorite sentiment play here. But probably should have bought a weed stock instead.
Definitely throw in the weed stick and when questioned about it, Jr. can say “What? You said invest in what you know.”
Awesome, I wish I had that teacher in middle school. Obviously, don’t try to beat the teacher. Just make dollar bills.
“master of financial markets” and “middle school teacher”….one of these is wrong. and since he’s your kid’s teacher, we know which one it is. 😀
TWLO
1mo? Use exodus to find stocks with high success rates for March seasonality. Sort through them looking for high beta stocks. Sort through those looking for set ups. But most likely, go with the ones you suggested and get back to breaking in the new Jordans while sitting back with some Doritos Spicy Nacho playing COD on the SNE PS4? 🙂
The teacher’s tips aren’t the greatest, but I must say that this is much better than any advice I ever received regarding stock trading or investing at any level of school. I’m shocked anyone is teaching anything other than the typical “buy an index fund and dollar-cost average” routine.
More generally, most teachers I had couldn’t distinguish between a company, an ETF, or a mutual fund. All they knew was that they had pensions none of the rest of us in the real world ever would have access to, and they didn’t really give a shit beyond that.
LVS, P, KNDI, FIT
I still like VRX for a potential big upside
VRX earnings on 2/28. Will act as a catalyst one way or the other.
My feelings on $MEET are fairly well established.
I like $ADXS, but $SRPT is tight-tight-tight and reports next week. For another idea.
My all time love $NMBL also reports in early March (3/7/17). Volatility is through the roof, but if he’s buying simulated equity, no matter. I have a feeling, other than the rocketing IV figure, that this is the report that moves it one way or another. I may make an intentionally bad bet on this one. TBD.
In my school stock picking contest, I picked Nike, like he would have. Our finance teacher was a former Navy Seal and neglected to mention stochastics or beta, but he did teach us how to balance a check book. Should have bought the damn shares, I’d be a happy man now. NKE was trading around $5 at the time as I recall.
What a cute story.
TLT UNG and GDX would be my call from now
I’ll punch you in the pussy if you’re being an asshole.
No, I’m serious
Forgive me. My blog comment interpretation reads in “troll” too often.
Thanks.
SWN. All of it.
what’s there to like about UNG?
UGAZ is better for this, no doubt.
Nice! I won one of these contests in college mainly in $TASR.
I would do
JWN
TOL
FSLR
ISRG
ABBV
+ 1000 on working Ralph Wiggum into one of your posts.
Wasn’t quite sure if I was ever going to fit that one in. Been sitting on it for a year.
$CLF, $DRYS
Bitcoin and pot stocks.
DUST
10% OTM calls and nat gas futures on margin. You can both thank me later.
Short AMZN now?
You think?
I had a shot at it developing a bearish set up, but it was invalidated early in the week. Not sure its looking too bearish anymore.
Erx for Jr’s portfolio
Is the teacher Peter Lynch?
GME, BKS
Erx is 3xs etf russell energy amigo
I know, comment posted in the wrong spot.
100% of portfolio into TVIX. Son retires before dad.
You’re still solvent?
GIII,GRUB,YUMC,TWTR,JMEI,LEDS,LN,LTBR,NAT,SWN,WTI,WPRT
You forgot the ultimate short squeeze HLF
Excuse me “The mother of all short squeezes”
picked up LN Mar calls, LVS Jun calls, and GDX Jun puts (a lot). Amazing how resilient the market is.
All or nothing?
Full (Paper Money) Account in Drys. You’ll win in a week or loose it all.
Also like RH as another retail name. Really like how JWN, TGT are consolidating here, just don’t know when they will start moving
FEYE FTW!
Lever him up in some futures and blow peoples brains off their shoulders. Turn it to 0 or 2 million in a month, either would be amazing. Also fade the stoch with each opportunity… then have him tell his teacher he faded him.
The cool part about this story is that your son will be so ahead of the curve. Like he could be ridiculously ahead of the curve assuming he takes an interest.
mmmm long Doritos
PBR and BAK
$250k May ’17 $SPX call options, $250k May ’17 $TLT call options
dmfracer- ITM, OTM ?
xbi lb db cld dvn ewz
Bought taste of PNR..
I bet you’re regretting not including LL in the opening lineup…. cause holy crap.
He bought all 10.
Took NFLX long near money
OA, LIXXF halted pending company news?
Yes
Trading again. Any idea what happened? I don’t see any news? Thanks!!
Permits for a ponding facility. Is that what your were expecting?
It’s just news. You ok over there?
Twlo coming back in
seems like some trash stocks are starting to get bids.
$TMST will rip anyone’s nuts off who goes short.
Maybe it’s because I’m at 8,000 feet above sea level, but I’m having a tough time finding great setups. Everything is so extended. Welcome any suggestions.