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.

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