I'm participating in the StudentInvestor Challenge in school. Basically, my group is given £100,000 fake cash in two portfolios with the aim of increasing each to the highest amount possible.
Some notable rules:
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One of the portfolios, the Active Investor portfolio allows teams to trade every day. The Strategic Investor portfolio only allows 10 trades per month, encouraging long term thinking. Virtual cash and investments cannot be transferred between portfolios.
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We're given the opportunity to buy shares on the London Stock exchange during its operating hours, with each share reflecting its real life cost (delayed by 15 minutes). Teams can invest in stock chosen from a list designated 'FTSE 100 companies', a list of around 50 selected smaller companies designated the 'SmallCap 50' and a list of specially selected exchange traded funds (ETFs).
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Any team holding more than £15,000 in virtual cash on either portfolio at the end of a trading day will be fined £1,000 on that portfolio. The Windfall Tax will be first applied 8 days after a team starts trading in that portfolio.
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Each team registered before the challenge starts will have a 'virtual cash pile' of £100,000 to invest for each of their Active Investor and Strategic Investor portfolios. Once the challenge starts the figure for each portfolio is index-linked to the FTSE-100 until the team starts trading in that portfolio. So, if the team cannot start trading immediately when the market opens on 17 October 2016 they will not be at a disadvantage.
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When a team buys/sells stock in an ETF they will be charged flat rate commission.
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The minimum investment in any one stock is £1,000.
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A team can invest up to a maximum of 20% of their overall portfolio value in any one company or ETF.
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On a per portfolio basis, there is a limit of 1 transaction per team per company/ETF per day. This restriction refers to the day that a trade is processed, which may be different from the day on which it was requested (see above).
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On a per portfolio basis, each team can own a maximum of 0.01% of the available shares in any one company or ETF.
The full rules can be read here.
Basically, I'd like to know how to beat this thing. I've read the FAQ but it wasn't much help, unfortunately. The added rules of this game and the fact I'm willing to be more risky with fake cash makes me feel it wasn't as relevant. I know the bare, bare basics of investing (buy low, sell high) so am just looking for general tips, strategies and tips for beating teams of teenagers.
Thanks in advance.
Submitted October 16, 2016 at 06:39PM by draxfor http://ift.tt/2ecWJtn
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