What is a good investment strategy when using a stock trading simulator? and why is that...

What is a good investment strategy when using a stock trading simulator? and why is that strategy a good one? What stocks would you invest in at this time and why?

Expert Solution

A good investment strategy shall be identify the growth and value stocks. One would invest in both the types of stock to have the benefit of diversification. A growth stock could be a company undergoing high growth face and its stock is expected to appreciate. Growth stock are those who have sales growth, earnings to price change and have momentum. Companies like amazon, Netflix, Adobe are good growth stocks.
Value stocks are those who have a fundamentally strong value than their price at present. As a result of fundamental value or intrinsic value, they are likely to rise. Companies like Macy's, Kohl's Corporation are value companies.

A stock may also have characteristic of both growth and value such as Apple, Tesla and Google. They have fundamental high value as well as high growth momentum.

One shaould invest in value stock for long term as a strategy and invest in growth stock until they have momentum. As a strategy, one shall include stock from across all industries to provide a better diversification. Therefor inevsting in technology stock such as Uber, Tesla, Apple or google shall be a good idea.

jeff jeffy answered 2 years ago

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