stock market challenge...

[PorkRinds]

I've joined a stock market challenge where you invest a fictitious 25k, and the winner after 6 months wins a cash prize.  Any advice on how to win this contest?  Obviously long term investments aren't going to work.  I've been short selling and making a decent amount, but I thought I'd ask if you guys know any short term stocks that I could buy now and make some decent money on in the next couple of months.  Thanks for any help you can provide!

[BENTON PIGGEE]

Can you use options or just stocks?

[userpick]

As a swing trader, this is what I love doing. I just bought US Steel and VMC today. Best of luck in your contest.

[PorkRinds]

It's just stocks I think. What are options? Sorry, I don't know too much about the whole process. I have "a guy" they handles it for me.

[BENTON PIGGEE]

It's just stocks I think. What are options? Sorry, I don't know too much about the whole process. I have "a guy" they handles it for me.

OK. Put it all on Alibaba (BABA) and hope it runs  up.

[userpick]

OK. Put it all on Alibaba (BABA) and hope it runs  up.

Not a bad strategy. With earnings reports coming out Tuesday and analysts expecting 45% increase on net profit from a year ago, who knows what will happen....

[PorkRinds]

OK. Put it all on Alibaba (BABA) and hope it runs  up.

got 150 shares this morning.  It's already starting to go up.  Hopefully tomorrow it will shoot sky high.  Another question.  If it goes way up, when should I sell?  Should I just hold on to it, or take the money I make and sell when it starts dropping again? 

[BENTON PIGGEE]

got 150 shares this morning.  It's already starting to go up.  Hopefully tomorrow it will shoot sky high.  Another question.  If it goes way up, when should I sell?  Should I just hold on to it, or take the money I make and sell when it starts dropping again?

It depends on if you see a more promising opportunity. But remember it needs to be more promising for potentially the rest of those 6 months.

Good timing on that buy I think, like userpick said. I'll try to let you know if you should change horses. Good luck!

[hawgbawb]

buy low, sell high

[PorkRinds]

buy low, sell high

Damn fine advice.

[PorkRinds]

So the suggestion of buying BABA was a good one.  I've made some really good money over the last couple of days.

[AllHog90]

Did you find out if you could trade options in the competition?

If you are, that's where the winner will make his money.

[PorkRinds]

Did you find out if you could trade options in the competition?

If you are, that's where the winner will make his money.

Nope.  No options trading.  Just stocks on DOW and NASDAQ. 

[userpick]

So the suggestion of buying BABA was a good one.  I've made some really good money over the last couple of days.

Over 4% today. I'd say that's a good day.

[PorkRinds]

Over 4% today. I'd say that's a good day.

Very.  So if it starts dropping (or when I suppose) how far should I wait before I sell?  Should I ride it out, or sell when it starts dropping?

[userpick]

Very.  So if it starts dropping (or when I suppose) how far should I wait before I sell?  Should I ride it out, or sell when it starts dropping?

I don't know enough about alibaba. I also rarely mess around with IPO's. Benton Piggie can probably tell you more about what he expects long term from them. Based on what I read tonight, they received a little bad news in their third-quarter profits. In your game, I would personally sell as I expect the price to fall a little in the next few days. It's ultimately your call. Again, I would listen to Benton Piggie, because he knows more about this. Just my opinion.

[BENTON PIGGEE]

Very.  So if it starts dropping (or when I suppose) how far should I wait before I sell?  Should I ride it out, or sell when it starts dropping?

I bought my first 100 shares this AM at 99.60 and it closed after hours at 106.40. Earnings met but didn't beat expectations but the stock surged anyway. And it has only just begun to go up. I would suggest putting in 100% of your $ if it falls below $100 again. If you change horses with a loss, you aren't going to win. You gotta swing for the fences.

[userpick]

I bought my first 100 shares this AM at 99.60 and it closed after hours at 106.40. Earnings met but didn't beat expectations but the stock surged anyway. And it has only just begun to go up. I would suggest putting in 100% of your $ if it falls below $100 again. If you change horses with a loss, you aren't going to win. You gotta swing for the fences.

Good call. Up 3% in the first half hour today.

[Hawgndaaz]

I won this at the state level in high school. You throw all rules about smart investing out the window. Bet big on long shots and keep rolling it over. Not real money so it doesn't matter if you lose it all.

Funny story, I had to give a brief speech when my group won. I basically said this same thing to them and all the investment banker types that were in attendance just shook their heads and laughed.

[PorkRinds]

I bought my first 100 shares this AM at 99.60 and it closed after hours at 106.40. Earnings met but didn't beat expectations but the stock surged anyway. And it has only just begun to go up. I would suggest putting in 100% of your $ if it falls below $100 again. If you change horses with a loss, you aren't going to win. You gotta swing for the fences.

Sweet.  That's going to be how I roll.  I've made some good money on Strayer Educational Inc, and VMC from a suggestion here, but nothing like what I've made on alibaba.  I'm up like $1000 on them alone.  If I would have invested it all in them like you suggested I'd have made a mint already.  The only reason I didn't was because I had already invested in a few things that were making money, so  I was hesitant to put all my eggs in that basket.  Seems like that would have been a better option though.

[mhuff]

It's just stocks I think. What are options? Sorry, I don't know too much about the whole process. I have "a guy" they handles it for me.

I believe I would go the options route in the contest..... more leverage. Uou take a position and in real life your only liability is what you have invested in the cost of your option.  If you take a position and it goes against you, you can take a loss instead of praying the market will come back to you. You buy calls for long positions and puts for short positions. If you are a chartist you buy off bottom trend lines and sell off top trend lines ....... or off Fibonacci retracements. Look up Bulkowski's chart school for a wealth of free info. Also, I would read up on the Elliot Wave Theory.

[Ragnar Hogbrok]

buy low, sell high

If that electric go-kart business of yours doesn't pan out, you have a future in the stock market.

[BENTON PIGGEE]

If BABA gets to $115(Fibonacci pattern?), it might be a good time to switch to GILD. It was at $117 and now is $102.

[PorkRinds]

Is BABA a good buy at 89.81?  It's dropped like a rock recently, but it's also had some big jumps right after a big drop.  I'm first place in my stock challenge, BTW.  Based pretty much only on your recommendations, so thanks! Any new buys I should look at would be great.

[BENTON PIGGEE]

I am amazed you're in first place! My picks have underperformed. I actually bought BABA at $89 today to bring down my average per share cost.

If you think you can coast to victory Kroger(KG) should make some small but steady gains between now and then. If you need bigger gains, Celgene(CELG) at $120 looks good to me. Market is choppy at this point and anything can happen IMO.

[PorkRinds]

I am amazed you're in first place! My picks have underperformed. I actually bought BABA at $89 today to bring down my average per share cost.

If you think you can coast to victory Kroger(KG) should make some small but steady gains between now and then. If you need bigger gains, Celgene(CELG) at $120 looks good to me. Market is choppy at this point and anything can happen IMO.

Well, I had a specific strategy.  I made some serious money on BABA as it went up.  When it crashed I shorted it and made money on the downside as well. I made some money on GILD as well.  This is where my strategy starts.  I got to the point where I was up 24.2%.  The person in second place was at 8.4%, so I sold all my holdings and I'm sitting on my winnings until someone starts pushing me, or overtakes me.  As of now, no one is even close.  Second place is now at 7.1% and I'm still at 24.2! I see no reason to stay in when no one is even close.  Unless I find some things that are sure bets, I'm content to ride it out...