Wednesday, March 17, 2010

Stock Market Investing Academy Launches 100 Stock Challenge

A new site was launched this week called the Stock Market Investing Academy. The guy's name is The Banker and he talks alot about CANSLIM and William O'Neil's strategies. He devoted his first post to buying stocks, and laying out a strategy of using a simulator to start with, to garner some experience first with practice and then with your own cash. I was impressed with the detail of his first couple of posts. I was also impressed with what he wants to do at first and that is buy 100 stocks in 100 trading days in a stock market simulator.

During these 100 days, he is going to record all of his buys and sells. By analyzing so many of his own stock trades that he actually does himself and create a body of winners and losers that will have more value to him. It makes sense because I know that even with O'Neil's book How To Make Money In Stocks, he has tons of charts in the front that I know I should study but don't. The key is that I don't have any attachment or experience with those trades so they don't mean anything to me. At least if I do what he is doing and simulate 100 trades and study the mistakes and the things I did right.

More importantly, he says he is also going to develop a set of stock market investing checklists to handle his day to day investment tasks. The decisions we make can be standardized so that we do the same thing everytime in the same way and don't forget any important details. But also, it will help keep a handle on the emotion we experience when we invest real cash.

Let's face it. We won't make any money until we invest real cash. So, if his strategy gets to the point of investing real cash then it's something I can agree on. Simulation only takes you so far and investing with real money is king.