The sharemarket game held by the asx has ended and some nice suceesful strategies were used in the game , where people were given dummy cash to run a portfolio to gain profits and increase the value.
Each Game has a distinct flavour as it is completely dependant on the direction of the market at the time. From the insights of our Game winners, the resources sector and US credit market were the keys in this Game.
National and New South Wales winner
Portfolio value - $65,864
Strategy: "From the outset I invested entirely in stocks from the resource sector. Despite the volatility associated with these stocks, I believed they provided me with the potential for the rapid short term gains required to go well in the game. Fortunately, I made this decision at a time when metal prices, particularly gold, began to increase significantly."
2nd place Nationally and West Australian winner
Portfolio value - $64,756
Strategy: "After some limited research I secured shares in mining and construction companies that are operating in Western Australia, though most operate nationally and internationally. My portfolio consisted of 5 companies with approximately $12,000.00 worth of shares in each company. As the game progressed I monitored announcements on line and in the media. I also visited the ASX 6 monthly charts on a regular basis and tried to predict trading cycles. Once I thought the price had peaked in a cycle I sold shares and re purchased again when the prices had lowered in the cycle."
Portfolio value - $64,032
Strategy: "Resources stocks were considered mostly due to the China boom which even in the medium and longer term looks strong, but particularly for this competition only being 3 months I thought resources would remain strong. I mainly looked at well established resources stocks like RIO, BHP, Lihir, etc. I also had some money invested in a CSR and Tabcorp Holdings just because they were reasonably valued industrial companies and the charts looked ok."
Portfolio value - $ 63,981
Strategy: "The strategy that I used was basic. When the game commenced the market was in the final stages of a sharp correction that left numerous blue chip stocks significantly over sold. I waited for the market to turn and then bought Lihir Gold, Paladin Resources, Macquarie Bank and BHP the balance of small change left was used to buy ASX as I believed the market would continue to climb with high trading volume due to volatility associated with the US sub prime mortgage mess. I decided to purchase and hold these stocks for as long as possible because the less brokerage I paid, the more profit I would retain. Further the stocks available to trade in the game were such large blue chips that day trading was quite difficult and expensive due to the measured gains being made by most stocks vs. brokerage fees."
South Australian winner
Portfolio value - $63,050
Strategy: "A simple buy and hold strategy was employed. My portfolio was heavily weighted to the resource sector with exposure to Gold, Zinc, Copper, Aluminium, Bauxite, Uranium and AUD/USD spot prices. Limited Australian financial sector exposure, due to the sub prime situation. As the game drew to a close it was evident that maintaining a buy and hold strategy would not be optimal and my resource sector exposure was reduced."
Portfolio value - $61,956
Strategy: "My strategy was rather straight-forward. With the current boom in mining and the sub-prime issues in the US, a winning portfolio was always going be heavy in resource stocks. Initially I picked four resources such as BHP and Woodside Petroleum which I held for the majority of the game. I also purchased Macquarie Bank which I sold part way through the game to buy Rio Tinto. The most interesting part of the game for me was the final days with the Rio Tinto/ BHP merger proposal and the market volatility. On the second last day of the game I sold almost everything and bought all the major banks which seemed to all be performing well, while the resources were taking a hit after base metal prices dropped. This last minute change of strategy helped me extend my lead going into the last day of game."
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