Getting Started: Registering Your Team for the First Time
To begin the competition, your group will have to first register at the Investopedia site. (NOTE: only one member of your group should register your portfolio at the Investopedia site) Select a user name and password that each member of the group knows. (This information should only be shared amongst group members).
Go to the Investopedia Challenge to get started!
How does our group join the game set up by Mr. Messere?
Go to 'Stock Simulator' and in the drop-down menu select 'Games'. (see 'view more games' link for private matches) You will have to do a search to find the name of this competition. Since this is a private match, you will be required to enter a password [see the 'Game Rules' page for password - it is in red] to join the competition. The name of the class stock market simulation is "Messere2025". Once it is found, click 'join' and you may begin the process of researching and selecting your stocks.
Researching Stocks
Groups should consult this guide detailing the process of researching and trading stocks using the Investopedia simulator.
Stock Market Research
Aside from the multitude of information available at the Investopedia site, your group may use the links provided at the Stock Market Research and Data page to aid your selection process. Links have been provided here to help you research both US and Canadian equities.
Factors to Consider in Creating Your Portfolio
Remember, to examine various fundamentals such as the firm's business model, company earnings, return on equity, competitive advantage, quality of management etc.... To further understand the fundamentals of a company in your research, review the following. One last tip, diversification is always a good idea. For example, selecting a portfolio consisting of tech stocks only will make you vulnerable to downturns in that industry. See the table below for a sample of a well diversified portfolio spanning a broad cross-section of industries (sectors) in the economy.
Sector (Industry)
|
Stock Example
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Energy
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Exxon Mobil (NYSE: XOM)
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Financials
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Goldman Sachs (NYSE: GS)
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Materials
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BHP Billiton (NYSE: BHP)
|
Industrials
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Deere & Company (NYSE: DE)
|
Utilities
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FirstEnergy Corp. (NYSE: FE)
|
Information Technology
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Google Inc. (Nasdaq: GOOG)
|
Telecommunication Services
|
Tellabs Inc. (Nasdaq: TLAB)
|
Consumer Discretionary
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Wal-Mart Stores Inc (NYSE: WMT)
|
Consumer Staples
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Coca-Cola Company (NYSE: KO)
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Health Care
|
Johnson & Johnson (NYSE: JNJ)
|
Stock Market Competition Rules
To test your investing skills we will use the Investopedia web site to select our stocks and track the progress of group portfolios. Please note that the sale and purchase of stocks includes US stocks only. The following rules have been included to simplify the competition and ensure a more enjoyable experience for all participants:
1. $100, 000 is the maximum amount available to each group when buying shares. No fees will be charged for stock transactions
during the competition.
2. To simplify the trading process, your group will only be purchasing U.S. stocks for this simulation. This is the diversification rule
whereby no more than 10% of your group's portfolio value can be held in one stock.
3. By the end of first week of trading, stock portfolios cannot carry an excess of 1% cash. (Use money to invest - not hold cash!)
4. The site will track all your transactions and update your portfolio on the next market trading day. Portfolio values for Canadian
equities (if traded) will be in Canadian funds while US equities will be denominated in US dollars.
5. When your group has completed its selection of stocks and entered the purchase price of each at the Investopedia site, print
your original portfolio transactions for submission to the teacher and posting in the classroom.
6. Please note that options, short selling and margin calls will not be permitted in this competition. Other important rules
affecting trades may be viewed at the page link provided below.
Complete Rules for the current competition
