We will also be discussing what the "range" means (52-week low/high) and what the news has to do with stock value.
Before you join our Stock Market Simulation, make sure you understand the rules. You will receive $10,000 in virtual money (no, you don't get to keep it) to invest in stocks as low as $.50 in value.
You can join via Market Watch here: http://www.marketwatch.com/game/khs2014 (password: knights)
If you are required to join Market Watch, know that you don't have to provide much detail. I gave them my real email address (which you will need to verify the account) and I set both my occupation and industry as "Education." I gave them a birth year, but that's really not their business either. Finally, note that I un-checked all of the "Newsletters and Alerts" and "Communications preferences" boxes.
There are a variety of strategies for "playing the market" -- and millions of dollars are made every year on books telling you how to do it. The strategies are endless. Some suggest investing in "penny stocks" -- others in "blue chip stocks". Some tell you to buy when a stock has taken a total nosedive and some will tell you to buy when it's on its' way up. Some tell you to invest in one risky stock and others advise you to diversify your investment. There's no "right way" to invest in the stock market. It's all at risk.
For my challenge (since it's not real money) I went to look for cheap stock [you can buy more stocks that way] but I wanted a large company. I found an article for "Billion Dollar Companies With Stocks Under $10" here: http://www.cnbc.com/id/44962045/Billion_Dollar_Companies_With_Stocks_Under_10
The problems with having large numbers of low dollar stocks is that the value of your portfolio is more volatile. I went from being in first place in our Stock Market Challenge to almost last place... and back to first within an hours time.
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