There is a stock challenge going on in Singapore trading on Singapore Stock Exchange. Betting on earnings report does not look like it works in Singapore market. We are only allowed to go long. Only equities and duration is 3 weeks. My portfolio is currently at -6%. Need a high risk solid strategy.
Any strategy you would like to share ?
If your goal is to win the competition and no other rank counts, then you should go long in the most volatile security possible, that is undergoing some kind of material event. Your return will be extremely high or extremely low. You will not win if you pursue a non-crazy strategy, and there doesn’t seem to be a penalty to losing all your money.
^ Best strategy unless you are also considering the second prize.
Pick stocks that go up more than the competitors.
Also what Ohai said, you need almost penny stocks that are hyper cheap with major volatility with a material event or headline going on with very little diversification, if any.
Or better yet, pick a penny stock and pump up the price yourself.
Only if I have the capital to do so.
I bought DeClout based on the news below:-
_ DeClout : Three months after it spun off and listed its unit Procurri on Singapore Exchange’s mainboard, the information and communications technology (ICT) service provider is on to its “second harvest” - to plump up its capital base by selling a 72.09 per cent owned subsidiary to China’s Citic Telecom International Holdings for up to S$75 million. http://www.businesstimes.com.sg/stocks/stocks-to-watch-declout-soilbuild-reit-duty-free-international_
Bought it at 0.23 now its at 0.20. Losses extended to 10%. Dayum.
Don’t you know you’re supposed to sell on the news? SMH
Hard to think of a dumber competition.
Certainly. My friends school (cant remember which) had them design a portfolio and monitor it throughout the semester. Was SP500 companies only and you did a write up every few weeks on any changes you made and your analysis leading you to those changes. Found it to be a ton better than these idiotic contests schools have that encourage you to throw it all in options and penny stocks
It would be interesting to find the portfolio with the highest sharpe ratio. Or perhaps information ratio would be better.
The game is no fun, only SGX long stocks, there’s not much to choose.
In order to catch up in this situation you need derivatives, shorts, volatility bets. For example you could short the China A50 Singapore traded futures with approaching Trump-risk, but you can’t short.