ASX Sharemarket Game Help! (1 Viewer)

[lookoutastroboy]

Hey guys,

I recently joined the ASX Sharemarket Game as part of a commerce class assignment over the holidays to buy and sell shares within a budget of $100,000 and see whether or not students could make money or not (keep in mind, this is pretend). Anyway, this is my 1st time doing this with no prior experience with shares or the ASX. To start off, I would like to start researching which companies shares have an uptrend or downtrend and the website tells me to look for company announcements. I have, but I do not understand any of this... Can anyone explain this area? Secondly, it says you can check what sector of the sharemarket is doing well by looking through this link, http://www.asx.com.au/asx/statistics/indexInfo.jsp, but what do all the terms and stuff mean here?? Thirdly, how can you tell which shares are good to buy?? All the lingo and mumbojumbo is driving me up the wall

If anyone of you could explain some of these concepts, I would much appreciate it.


Thanks in advance, lookoutastroboy

 

[xXmuffin0manXx]

Hey guys,

I recently joined the ASX Sharemarket Game as part of a commerce class assignment over the holidays to buy and sell shares within a budget of $100,000 and see whether or not students could make money or not (keep in mind, this is pretend). Anyway, this is my 1st time doing this with no prior experience with shares or the ASX. To start off, I would like to start researching which companies shares have an uptrend or downtrend and the website tells me to look for company announcements. I have, but I do not understand any of this... Can anyone explain this area? Secondly, it says you can check what sector of the sharemarket is doing well by looking through this link, http://www.asx.com.au/asx/statistics/indexInfo.jsp, but what do all the terms and stuff mean here?? Thirdly, how can you tell which shares are good to buy?? All the lingo and mumbojumbo is driving me up the wall

If anyone of you could explain some of these concepts, I would much appreciate it.


Thanks in advance, lookoutastroboy

put all 100 000 into rio tinto and just hold onto it till the end of the game..

 

[Aznmichael92]

put all 100 000 into rio tinto and just hold onto it till the end of the game..

you cant do that if i am remember correctly. The maximum in can invest in a company is 25% of your current asset. So that means so far only $25,000.

When i use to play, it was $50000. You guys are so lucky. Well I ended coming 2nd in my class of 30. What I did was bought Paladin Resources share when they were low as they tend to go flying back up. I invested 12.5k on it on a friday at like 5.86 per share. On monday BOOOM 6.50 per share. So lucky.

I dont recommend buying BHP as of now as my experience in it in the game is so bad. If you are looking for something safe, invest in like Commonwealth Bank. It is one of the safest shares. Not guranteed that it will always go up but it is most likely that it will go up.

For risky buyers, buy like Paladin resources or rio tinto as mentioned above. Rio tinto is somewhat risky but they tend to do very good at end of game. My suggestions. You dont have to follow it

 

[Aznmichael92]

Hey guys,

I recently joined the ASX Sharemarket Game as part of a commerce class assignment over the holidays to buy and sell shares within a budget of $100,000 and see whether or not students could make money or not (keep in mind, this is pretend). Anyway, this is my 1st time doing this with no prior experience with shares or the ASX. To start off, I would like to start researching which companies shares have an uptrend or downtrend and the website tells me to look for company announcements. I have, but I do not understand any of this... Can anyone explain this area? Secondly, it says you can check what sector of the sharemarket is doing well by looking through this link, http://www.asx.com.au/asx/statistics/indexInfo.jsp, but what do all the terms and stuff mean here?? Thirdly, how can you tell which shares are good to buy?? All the lingo and mumbojumbo is driving me up the wall

If anyone of you could explain some of these concepts, I would much appreciate it.


Thanks in advance, lookoutastroboy

in regards to company's announcements, they mean like is the company planning to invest in something that could boost their growth? E.g. building another world trade centre, this means they have to spend alot of money and could result in money dropping.

Another e.g. is the company merging with another company or is it splitting up? This could affect its price.

Another one is dividends. Note do not buy shares just because of dividends. Especially the weekend (friday) before the dividend is paid. This is because you will most likely make a loss. There is a trend that when dividend is paid, the share of the company tends to drop. If you bought the share long time before hand at a cheaper rate than current price, just keep it. You will still make some profit after the drop.

To tell which shares is good to buy its really up to your opinion. Are you a safe invester or risky invester. Look at the company and see the performance level graph. If it increase or decreases by a huge margine each day, it is a risky share. FOr shares that increase or decrease bit by bit, it is a safer share.

For the sectors, I am not too sure. If I am not mistaken, you are playing in the ASX 200 sector. Just look at it roughly everyday to see if it goes up. If it goes up and the company invest goes down. It could mean it isnt affected by the sector as much. Thats all I can help. Sorry if you still dont understand

 

[suzlee]

I did this exact commerce assignment last year and it was only a class-activity kind of thing, not that official competition. I think you're doing what we did, too
My teacher said that due to the time constraints involved, we weren't allowed to sell any of our shares once we bought them; which sort of loses the whole purpose of the experience IMO
In the end I thought I made like $7000 but when I got my mark back for the assignment I realised I calculated it wrong

 

[xXmuffin0manXx]

just dont invest in any airline..
and im not so sure if banks are ideal at the moment..
even with the bailout package...because the all ordinaries has fallen quite alot this morning..



i was wondering...if you just left the $100 000 and did nothing to it..your probably going to come in top 5 in your class arent you? i remember in IST when all the commerce guys were checking non-stop and all i remember was that the value of shares they invested in kept going down..

 

[lookoutastroboy]

By the way guys,

I am ready ti purchase some shares of a company. Under the 'Place Trade Column', it has these features of buying the shares: Initial Margin, When to Trade with 3 options (At Best, At Limit or Stop) and Order Valid for 1 or 7 days.
Sorry, and also variable margin as it is next to the initial margin box?
Could anyone please explain what this means before i buy the shares?









thanks in advance, lookoutastroboy

 

[Mothers]

I remember I came like 30th in the state when I played in year 10.

 

[benjihua93]

why would u put all ur money in rio tinto mining resourses and financial stocks are the ones being hit the hardest by the economic crisis. If i were u i would invest 25000 in woolworths because people always need groceries so if the stock price was to drop and also because they just announced a major quarterly profit, it would be by a significant number , the only mining company u should invest in is fortesque metals even their stocks are dropping, their value should sky rocket in the near, invest in petrol stocks because petrol is in such great demand and the last 25000 in a renewable energy company

 

[Aznmichael92]

i dont think woolworths is in the top 100 shares list so you cant buy it. There is only 100 companies that you can invest in.

 

[benjihua93]

oh wat r the top 100 shares then

 

[Aznmichael92]

i dont remember though cause in my year it wasnt in it but this year it could be. If you are going to invest in a grocery company, invest in woolworths and not coles. Coles is one of the worse shares to buy. Its management is so shit. Thats why it cannot compete well against woolworths

 

[xXmuffin0manXx]

woolworths is in top 100

and i would invest all 100k into rio tinto or even macquarie if i was allowed to :uhhuh:

i dont think either of those two could go any more lower..with the exception of rio
which might fall only a few more..


edit: after a quick check
rio is at 79.99
macquarie is at 32.10

 

[benjihua93]

macquarie banks shares has plumetted from a 52 week high of 90 dollars down to 32.10 so i dont think thats a good investmen and rio tinto was also in the high 140's

 

[xXmuffin0manXx]

macquarie banks shares has plumetted from a 52 week high of 90 dollars down to 32.10 so i dont think thats a good investmen and rio tinto was also in the high 140's

i think that is exaclty my point

 

[Aznmichael92]

at this rate dont invest in banks cause the australian dollar is collapsing like hell

 

[xXmuffin0manXx]

the questions you need to ask yourself are..


will the global financial crisis come to and end before the competition ends

if so, when will the crisis end and at what time should i begin to invest

 

[Aznmichael92]

if i remember correctly, even u dont spend ur money at all and u have the most money at end of game, you will not be ranked 1. Rankings are only for those that have invested

 

[xXmuffin0manXx]

if i remember correctly, even u dont spend ur money at all and u have the most money at end of game, you will not be ranked 1. Rankings are only for those that have invested

..one transaction is the minimum

 

[Aznmichael92]

..one transaction is the minimum

yea that is wat i meant