Tuesday, February 02, 2010

Adopt a consistent approach

This simulation game shows that if you adopt a consistent approach in picking stocks, you will be able to get better results in the long run. There may be ups and downs in some years, due to volatility, but the consistency will produce positive results. Some good approaches are:

a) choose the stocks that perform well in recent years, as they are likely to continue to trend
b) choose low PE stocks as they are likely to revert to the average

These are theories that need to verified by practice. This simulation game allows you to try the theory over many years, and see if they work for the model. In real life, you also have to test the model that works well and stick to it.

Click here to try the simulation game on stock picking. Read the guides and share experiences of the Champions (i.e those who reach Level 9).

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