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.

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