Saturday, February 06, 2010

Strategy to pick the right stocks - low PE and high yield

I tried a new strategy to pick the right stocks based on low price earning ratio (PE ratio) and a high yield during the past year. It produced good results in this simulation game. The theory is quite attractive - buy the stocks that are relatively cheap, i.e. low PE ratio. If these stocks have performed well in the past year, they may be on a strong trend. And they are cheap.

Click here to try the simulation game. The prices are simulated to be reflective of the trends in prices in real life.

Picking the right stocks require practice. This simulation game gives you the practice. You can find the right strategy and apply it to the real life, to see if it works. You can get the real data for the past few years to try it the theory that you have discovered through this simulation game.

Click here to download a PDF document showing the screen shots of how to play this simulation game.

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