Sunday, October 30, 2011

Million Dollar Portfolio Challenge Trading Suspended




Trading has been suspended for a week on the CNBC Million Dollar Portfolio Challenge. Apparently, some of the leaders who it seemed couldn't be getting luckier were actually exploiting a glitch in the fantasy trading system. CNBC explains it in their this article.

I suppose I should have made it clear before that the tips I have given for how a player can improve their chances of winning this competition are relevant to winning without cheating. So now that the system is hopefully fixed and fair, everyone should be able to take advantage of the tips here for a real chance at winning the Million Dollar Portfolio Challenge.

The good news for everyone who may have got a late start in this year's competition is that everyone's portfolios have been reset. That's right, the game is starting over, and everyone has an equal chance at winning the prize!

Even though my portfolio's have also been reset, I've gained some confidence in seeing these tips work already. So I expect, with a little luck, and sticking to the stock market basics that I learned at StockPrep.com, that I should be able to climb the ranks all over again, and perhaps get even closer to the top spot now that the cheaters have been removed from the game.

I wish everyone the best of luck, and I will continue to post my opinions of the market's forecast as well as trading strategies I'll be using to take advantage of the movement.

Friday, October 7, 2011

How To Win The Million Dollar Portfolio Challenge: Part 5

Million Dollar Portfolio Challenge
It's time to release the last 2 tips. After this update, you will know the same tips that I've used along with the information I learned at the StockPrep guide for how to invest. I've used these tips to rank higher than 99.98% of the more than 600,000 portfolios competing. With these tips and a little luck you may have a great chance at winning the million dollar grand prize!

Here are the tips you need to know to have a chance at winning the CNBC Million Dollar Portfolio Challenge 2011.
(1) Make high risk trades that have a higher potential gain.
(2) Follow the trend.
(3) Invest in Bullish positions to profit when the market rises, and invest in Bearish positions to profit when the market falls
(4) Manage your portfolio funds according to your game rank.
(5) Answer the Bonus Bucks trivia questions every day.
(6) Monitor your trades closely and know your exits
(7) The most volatile movements in the stock market often occur in the first and last hour of the trading session.
(8) Use short-term trading strategies.
(9) Learn October and November seasonality patterns.
(10) Use FOREX understanding the correlation of the market to the USD.


It may seem that anyone can win the Million Dollar Portfolio Challenge. However, you can't just be lucky in predicting the market's movement. You must know how to use the tools available in the game to make the most from your accurate predictions. There are many professionals competing, and without the tips above, a beginner stock market trader wouldn't stand a chance at winning. If you don't understand one of the tips, then you may contact support@stockprep.com with any questions you may have.

The ninth tip you need to know is:
(9) Learn October and November seasonality patterns.
As you learn in the stock trading strategies section of StockPrep, seasonality can be very useful in predicting market movement. Seasonality is not 100% accurate, but rather the most probable patterns based on historical market movement. Here are some important seasonality patterns to remember during this game:
October is the most volatile month for the Dow Jones Industrial Average.
August-October has the most bearish market avg. for a 3 month span.
November is the most bullish avg. month for the S&P 500 index.


The tenth tip you need to know is:
(10) Use FOREX understanding the correlation of the market to the USD.
This game allocates 100,000 cnbc bucks toward currency trading. You can actually use your stock market knowledge to make FOREX profits as well. This is because the US dollar is indirectly correlated with the US stock market movement. So when the US markets are bullish, the dollar often loses value. When the US markets are bearish, the dollar often gains value. The simplest way to trade currency using your stock market knowledge is by using this correlation.

Currencies are traded in pairs such as EUR/USD, which is the Euro Dollar. The trading actions available in this game are buy and sell. Buy means buying the base currency which is the Euro in the EUR/USD pair. Sell means buying the quote currency which is the US Dollar in the EUR/USD pair. According to the correlation, you should buy the EUR/USD when you predict the US stock market will rise, and sell the EUR/USD when you predict the US stock market will fall.

This is a very simplified guide to profiting from your stock market knowledge in the currency trading part of the Million Dollar Portfolio Challenge 2011. If you would like to learn more about currency trading strategies, then I suggest http://www.babypips.com

Those are all the tips on how to win the Million Dollar Portfolio Challenge. I may not hold my current rank in the game, and I may advance even further based on the accuracy of my market predictions. Nobody can guess correctly 100% of the time. However, I know that I would not be performing nearly as well as I am without these tips.

Thanks for reading! As the game advances, I'll be posting my opinion on possible market movement as well as details on the strategies I'm using. Then later, I'll start the live trading with detailed strategy explanations on the stock market game portfolio.

Tuesday, October 4, 2011

How To Win The Million Dollar Portfolio Challenge: Part 4

Million Dollar Portfolio Challenge
By now you know 6 out of the 10 total tips that you need to know to have a chance at winning the CNBC Million Dollar Portfolio Challenge 2011.
(1) Make high risk trades that have a higher potential gain.
(2) Follow the trend.
(3) Invest in Bullish positions to profit when the market rises, and invest in Bearish positions to profit when the market falls
(4) Manage your portfolio funds according to your game rank.
(5) Answer the Bonus Bucks trivia questions every day.
(6) Monitor your trades closely and know your exits.


My portfolio has been climbing up the ranks steadily even as the markets create a grim attitude throughout Wall Street. As I approach the top ranked players out of hundreds of thousands of competitors, each trade seems to make me more nervous. But I learned in the stock trading tips section of StockPrep.com to "leave emotion out of trading." It's tough! Any investor knows that.

However, if you expect to succeed, then you need to replace your emotions with discipline and stick to your rules. So by using the very same tips I've been revealing to you, my portfolio has reached rank 177 out of almost 600,000 competing portfolios.

The seventh tip you need to know is:
(7) The most volatile movements in the stock market often occur in the first and last hour of the trading session.
You can use this to your advantage two ways. First, if you are strongly convinced that the market will move a certain direction, then you want to be well invested into your positions before the major movement occurs. However, if you do not have a strong conviction as to the direction of the market, then you should not be fully invested during the most volatile moves. The first and last hour of trading are critical, especially if you will be making trades during the trading session, which brings me to the next tip.

The eighth tip you need to know is:
(8) Use short-term trading strategies.
Long-term investors don't stand a chance at winning this competition. I'm not bashing their trading style at all, but it just won't work in this game. Short term trend changes may only last between 2-5 days, and you need to be able to take advantage of as many as possible. So don't ignore bear market rallies, or bull market dips. Earn profits from these movements, but do not forget the general trend of the market.

Thank you again for reading, and check back soon to get the last 2 tips you need to know to increase your chance of winning the Million Dollar Portfolio Challenge 2011. After I reveal all 10 tips, I'll post some details of the exact strategies I'm using, and my opinion on where the market may be headed.

Before finding StockPrep.com, I honestly wouldn't have had a chance in this competition. I am thankful of everything I learned there, and I hope I can teach many more beginners how valuable the stock market information provided by StockPrep.com really is.

Saturday, October 1, 2011

How To Win The Million Dollar Portfolio Challenge: Part 3


Million Dollar Portfolio Challenge
So far you know four of the tips you need to know to have a chance at winning the CNBC Million Dollar Portfolio Challenge 2011.
(1) Make high risk trades that have a higher potential gain.
(2) Follow the trend.
(3) Invest in Bullish positions to profit when the market rises, and invest in Bearish positions to profit when the market falls
(4) Manage your portfolio funds according to your game rank.


Today I'll teach you another two tips that I've been using to stay in the top 1% of portfolios. I have moved my way up to rank 345 out of over 550,000 portfolios! I'm just a beginner that has read through the stock market basics and strategies at StockPrep.com. Then I combined that knowledge with the tips I've been showing you here.

The fifth tip you need to know is:
(5)Answer the Bonus Bucks trivia questions every day.
Each correct answer is worth 2000 bonus bucks each! The questions are not easy, but they're multiple choice. So you might as well take a guess. Any sure profits in this game should not be ignored. To find the 3 daily trivia questions, click on the "Bonus Bucks" tab while the trading session is still open.

The sixth tip you need to know is:
(6) Monitor your trades closely and know your exits.
The Million Dollar Challenge does not allow limit orders. This makes it impossible to set a stop loss or trailing stop. So you must set your exits for each trade and remember them as your trade progresses. Managing losses is essential because nobody will guess it right every time. In real trading, you can set a stop loss or trailing stop to protect your position when you're not monitoring it.

In this game, you must personally exit your losing trades at the levels you would have placed a stop loss order. This may not seem too difficult, but I can assure you when it's time to make the trade, emotion will try to make you second guess yourself. Stay disciplined. Make the stop loss trades just like a computer would if your trade reaches that level. This is the best way to manage your losses so your winning trades can give you a chance at winning the million dollars or a 2012 Maserati GranTurismo.

Thank you for reading, and check back soon. I'll continue to reveal more ways to stack the odds in your favor for winning the Million Dollar Portfolio Challenge 2011.

Wednesday, September 28, 2011

How To Win The Million Dollar Portfolio Challenge: Part 2

Million Dollar Portfolio Challenge
In my last post, I revealed the first two tips you need to know to have a chance at winning the CNBC Million Dollar Portfolio Challenge 2011.
(1) Make high risk trades that have a higher potential gain.
(2) Follow the trend.


Today, I'll teach you another two tips that have helped me propel my portfolio to the 380th rank. I know that the competition is far from over, but I am very excited. You have to understand that before I found StockPrep.com, I didn't even know how to invest in the stock market, much less how to follow trading strategies. In a short time, I now have a portfolio that ranks better than 99.93% of beginner, intermediate, and professional stock market traders alike. As I said, it's still very early in the competition, but seeing the strategies I've learned working as intended is just a great feeling.

The third tip you need to know is:
(3) Invest in Bullish positions to profit when the market rises, and invest in Bearish positions to profit when the market falls.
For me, this has been the most valuable tip I learned, especially in this highly volatile bearish market we've been trading in recently. The tip is rather obvious, but there are so many limitations in the Million Dollar Portfolio Challenge that it's tricky to find a way to invest in a Bearish position.

Players cannot trade options, nor can they short sell stocks. So in this competition, the only way to profit from a market decline by trading stocks is to invest in ETFs that move with an inverse relationship to the market. It has been very difficult to find some as most of these ETFs are not eligible for trading, but after hours of screening, I've found 5 ticker symbols that move up when the market falls.

Profitable eligible ticker symbols to invest in when the stock market is Bearish:
FAZ - SDS - VXX - QID - SH

When the market is Bullish, it's very easy to find winners as many stocks will increase. However, if you're having a tough time choosing individual bullish stocks and want to trade the market movement, then I've found a few great bullish funds as well.

Profitable eligible ticker symbols to invest in when the stock market is Bullish:
FAS - TNA - SSO - UYG - DIA

If you want a real chance at winning this game, then you have to be able to profit in both bullish and bearish markets. Now you have the tools to do it!

The fourth tip you need to know is:
(4) Manage your portfolio funds according to your game rank.
In the first post I told you that to keep up with the leaders, you would have to make high risk trades on lower priced stocks or funds. I did not explain how much of your portfolio you should risk in these trades. You should manage your funds according to your portfolio rank. If you are far behind the competition leaders, then you should apply a higher percentage of your funds to riskier/higher payoff trades. As you near the leaders, risky trades with large amounts that do not move as you predict can send your portfolio crashing fast. So when you are in the top 1%, you should allocate smaller amounts to the high risk trades. Overall, most of your trades, even in the top 1%, will probably be riskier than you should attempt with real money.

Thank you for reading, and I hope these tips will help you as much as they've helped me so far. There are still many more, so check back to find out more ways to stack the odds in your favor for winning the Million Dollar Portfolio Challenge 2011.

Monday, September 26, 2011

How To Win The Million Dollar Portfolio Challenge

Million Dollar Portfolio Challenge
So far we're still near the beginning of the CNBC Million Dollar Portfolio Challenge 2011. Even so, staying close to the top is extremely difficult with such fierce competition. My main portfolio is ranked 579th, and my profits so far have been better than 99.9% of the other portfolios competing in the game. The title, "How To Win The Million Dollar Portfolio Challenge" is not misleading. In the end, it comes down to luck in this no risk, all reward stock market simulation game. However, you need to know how to turn good luck into the most profits possible if you want a real chance at winning.

This competition only lasts 10 weeks. So that means beginners have almost the same chance of winning as investing professionals who trade stocks for a living. There are so many great investing strategies that have a high probability for success. However, these strategies are all but useless in a competition like this. The profits on most stock trading strategies are too low to beat those who trade with high risk and get lucky.

So the first tip you need to know is:
(1) Make high risk trades that have a higher potential gain.
This can be accomplished by trading the lowest priced stocks or funds. A small movement in these mean a high change in percentage. Only the luckiest players will guess the market's movement correctly every time, but you can increase your probability by following the next strategy.

The next tip you need to know is:
(2) Follow the trend
If you want to win, you will be making higher risk trades. So you need to stack as much probability of success as you can. Many stocks will follow the market, so if you can accurately predict the overall stock market's trend, then you will gain an advantage. There are a couple factors you can use to easily gauge the trend.

30 day simple moving average
First, you need to watch the moving average. A simple 30 day moving average will help you determine the general trend. If the ending price is above the 30 day moving average for more than 2 days, then the trend is generally bullish. If the ending price is below the 30 day moving average for more than 2 days, then the trend is generally bearish. When the price crosses the moving average and ends on the other side, then the trend may be changing directions. When this occurs, you should watch the direction of the price for a few days to confirm that the trend has actually changed.

Next, you need to watch support and resistance levels to predict the short-term trend. A support is where the price has fallen to and bounced off of a certain price level multiple times as shown below.
Stock Price Support

A resistance is where the price has risen to and bounced back from a certain price level multiple times as shown below.
Stock Price Resistance

Support and Resistance levels can often occur at the same price levels as shown below.


The moving average will often become a support level in a bullish trend, and a resistance level in a bearish trend. Use the moving average to determine the general direction of the market, and use support and resistance levels to predict short term movement within the the general trend.

Thanks for reading. In the next post, I'll provide more stock market tips for how to win the Million Dollar Portfolio Challenge 2011.

Friday, September 23, 2011

CNBC Million Dollar Portfolio Challenge 2011 & New StockPrep Blogger


Welcome! I am the next beginner trader who will reveal my portfolio for everyone to see. The first StockPrep.com blogger had a successful run. Then he began investing real money, and didn't have time to continue paper trading for the blog. I hear he's been doing well even in this recently volatile market. So I'll be starting a fresh portfolio on the stock market game.

I am a beginner who came across StockPrep.com on my quest to learn more about stock market trading. The information there was a great start, and I loved following the blog and portfolio trading. When the blog was no longer being updated, I inquired if the spot was open for another beginner to pick up where it left off. I was since invited to become the next beginner portfolio for everyone to follow!

This time however, there will be a twist thrown in. The author of the free stock trading info on StockPrep.com has agreed to teach me intermediate level strategies. The stock market for beginners guide on StockPrep.com is perfect for someone with no stock market investing knowledge. After learning the info there, a beginner is ready to learn more advanced stock trading strategies. That is exactly what I will be learning, and both applying and explaining in my portfolio trades. So follow the blog and my portfolio to continue your stock market education!


Some of you may already know, but CNBC is currently offering the Million Dollar Portfolio Challenge 2011. It's free to enter, and you can win a million dollars, or lots of other great prizes. I wanted to know how to win the CNBC Million Dollar Portfolio Challenge 2011. The author of StockPrep.com taught me some exclusive strategies designed exactly for this competition. I will be presenting these strategies, along with my progress in the competition to you in the next posts, before I get started on my paper trading portfolio.

I hope you're as excited as I am. The info and trading strats that this blog will deliver will be more worthwhile than those expensive investing courses. If you thought the stock market info on StockPrep.com was good, then you're going to be blown away by the stuff I've learned and will be showing you next!