2 Responses to “What’s the best strategy to day trade starting today?”

1. G A Says:
   May 25th, 2010 at 9:18 am

   Day trading is tricky, whether your doing it for real or as an exercise like you are doing here. The primary problem is that over very short periods of time, individual stocks as well as the stock market indexes can be extremely volatile. You might as well throw darts at a dart board marked out with all of the stock symbols because it pretty much is sheer luck over such a short time frame anyway.

   I’m not familiar with CNBC’s Million Dollar Portfolio Challenge, so I don’t know what their investing time horizon is like for this task. Depending on how long that horizon is, I would probably make different sets of choices for your million dollars. Over a longer horizon, I would probably do some research and then pick 20 stocks, $50,000 each, and then let them sit there and do nothing for several months as that is, historically, the best way to get a return on investment. Too much “in and out” of the market would kill you on commission costs alone anyway.

2. InfoMATic Says:
   May 25th, 2010 at 9:48 am

   The best strategy from what I see is to have a lot of friends that like to gamble (trade) involved. Not that I consider trading as gambling, but that you treat the contest as an over glorified way to test the highest risk strategies. That requires multiple strategies to build a really good spread!

   Multiple Strategies? What is better than $1M?! Well, $2M ofcourse. What is better than $2M?!! I’m sure you can see where this is going. Not that you can’t register for multiple junk accounts, you’ll disqualify yourself and what more the possibility of one of your aliases winning, leaving you (the real you) with nothing, not so cool.

   At $1000 each and a maximum of $5000 bonus to your $1M in trading power it’s hardly an incentive to refer your network. However, if you do have a network of trading buddies, putting together a small group of “do overs” will extend your chances to winning the ten week gamble. Do you really want a social experiment or a business project?

   It will be both. It will test your groups ability to communicate as well as collaborate team efforts through individuals. You will have a really hard time putting together a diverse portfolio and win, because not everything in a diverse portfolio will win. The whole purpose of putting together a diverse portfolio is so if you lose you still win. That is investing–not gambling.

   Pick ONE performing stock, with a recent serious loss or what in most cases is seen as having all their eggs in one basket or a scandal. Long story short, short story recovery–all or nothing. Then, have your picks and diversify by accounts through your gambling network.

   Now that you know the winning strategy, let’s end with the winning bets:

   CHTR – Paying less for debt, makes for more money.
   JBLU – So it’s Winter, Spring is less than a month away.
   SIRI – OO, mergers are cool!
   AGIX – Drugs for bacon lovers.
   NEW – Subprime Lives! Ask Green Light Mortgage.
   GS – Buy Next Week then Hold for the Gusto
   AAPL – Hello? Maybe to slow. Goodbuy?
   AUY – They’ve struck GOLD!

   Things that will take too long to recover? The unmentioned corporate entity that owns Taco Bell/Pizza Hut/KFC.

   It’s only a $1M dollars, that you don’t really have. Plus, since the CNBC Trading Rules state that the stock of your choosing has to have a minimum market cap of $500 Million, playing into the hardcore risks of penny stocks is out of the question. That doesn’t mean you can’t have fun with it. Either way, it is a free play at winning big at day trading (gambling) or just being rank.

   In short, you can’t invest in a Video Game with a time limit. You can however throw enough quarters into it to win.

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