And the winners are…
Congratulations to all those who played actively for the whole Game.
For this Game:
The All Ordinaries (XAO) barely moved, up just 0.21% over the Game period.
The best performing sector was energy up 5.34% followed closely by financials up 4.29%.
- The worst performing sector was materials (which includes mining stocks) down -7.22% followed by consumer discretionary down -5.47%.
- The top stock was shipbuilder Austal Limited (ASB) up 36% followed closely by health insurer NIB Holdings (NHF) up 25%.
The worst performing stock was biotech stock Acrux (ACR) down over -58%.
How did players go? Well 32% of players finished in profit and the average portfolio was $48,870. You may have been a little disappointed with your efforts, but the important thing to remember it is all about learning, no matter what the market is doing.
We have asked our top 5 players for their feedback. They used a variety of strategies so read on to discover what they did. (Please remember: The strategies that the winners employed are not necessarily the same strategies they or you should employ when it comes to investing real money.)
Flow ~ Yang from New South Wales
Portfolio value: $66,013
Yang has played the Game once previously. He spent around 1-2 hours a day on the Game mostly researching and reading news. He focused on 4 main stocks, PDN - Paladin Energy, QAN - Qantas, BLY - Boart Longyear and SLR - Silverlake Resources, buying and selling each of these multiple times.
Strategy: "Due to the rather volatile market conditions at the time, I wanted to test a trading strategy that focused on undervalued and oversold stocks. I would try to purchase stocks around their resistance points, and exit when their share prices rebounded. I chose about 30 out of the 150 companies listed and put them on my main trading watchlist. As for the method of share selection, I used some resources given in the webinars as well as newsletters, such as the 9 rules of selection and the relevant market/company risks. I personally think that the 3 most important aspects are a share’s trading volume, timing, as well as your trading psychology. It’s helpful to identify the ‘unusual’ trading volumes of a stock and the possible reasons behind it.
The advantage of the strategy was being able to react to market conditions quickly; the disadvantage was the high brokerage costs as well as the huge losses when false judgements were made. I reached the daily trading limits a few times, which translated into $400+ brokerage costs, that alone was almost 1% of my initial portfolio. The three shares that I’ve traded most often have all dropped over 30-50% during the Game period. I tried to refine my strategy and control the risks by limiting trading amounts, as well as carefully choosing the entry points. The exit points still had lots of room for improvement, but everything worked out quite well overall."
Congratulations to Yang. He has won the $3,000 ASX prize, plus a free twelve month subscription to Stock Doctor (valued at $1,495) from Lincoln Indicators.
Oneclub2big – Mark from NSW
Portfolio Value: $61,901
Mark has played the Game approximately 5 times. He spent around 5 – 6 hours in total on the Game. He says… “In the early part of the Game I decided to just buy some stocks and hold them and not look too often. As the game progressed and I noticed I was doing well, I looked every day to see how I was faring...”
Strategy: "I decided to select just five companies, investing $10k each in the beginning – these included QAN - Qantas, AAD - Ardent Leisure, TWE - Treasury Wine, DJS - David Jones and OZL - OZ Minerals. I wanted to make sure they were across a diversified range of industry sectors. This year my strategy was definitely different. In previous Games I have bought and sold many, many times, sometimes 50 or 60 trades. This year I thought I would buy just five stocks and sit on them - I was in for the long haul. I stuck to my plan, except for the last two weeks. I was influenced by the fact that this was a Game and there was an endpoint on June 11. When I noticed I was in the top five I decided if I was going to win and go for the top prize I needed to adjust my strategy and take a high variance approach.
The player named Flow was sitting on around 66k, so I sold all of my stocks in the last two weeks and bought new stocks, again across a diversified range, but they were all under $1 a share. In this way, I felt it gave me the best chance to catch the leader as small variations in these stocks would yield a good return over a shorter two week period at the end of the Game.
On this occasion this approach did work, but I could not overcome the 6k lead Flow had."
Congratulations to Mark, he has won a free six month subscription to Stock Doctor (valued at $747.50) from Lincoln Indicators.
Ashtray ~ Ashvinder from Victoria
Portfolio value: $60,423
This is Ash’s second time playing; he spent around 30 minutes a day on the Game. Read more to find out what he did…
Strategy: "I’ve had a personal favourite list of companies before coming into the ASX Game and I’m glad some of those companies were available for trade in the Game.
Having known the constant but stable fluctuations on my selected share list, I bought low and sold for 10% gains a number of times over. I couldn’t always maintain this as market conditions changed a few times over the Game and I had to hold shares for longer periods than expect to let it recover.
I made great head wind when there was a takeover bid for PNA - Panaust which rocketed the share price upwards of 50%. PNA was on my initial list…
The Age Markets website was a good resource to view historical share prices and announcements. Googling ‘Sharetips of the week’ also enables you to obtain some good information on companies."
Congratulations to Ash, he has won a free three month subscription to Stock Doctor (valued at $373.75) from Lincoln Indicators.
Marfox – Don from Victoria
Portfolio Value: $59,484
Don is a regular player of the Game having played it at least 5 or 6 times before and as he says…with varying degrees of success.
Strategy: "My strategy was to maintain 4 - 5 stocks to give me diversification while being as efficient as possible with brokerage costs. I tend to favour mid-cap stocks (and priced $2-$5) that are actively engaged in new growth opportunities & consequently are somewhat volatile... With low-end prices, you obtain a greater number of shares and subsequently small movements can produce higher gains (or losses) with any current volatility - it's a risk I like to test in the Game but not necessarily in my real portfolio!
Personally, I lean towards stocks in Energy/Resources, Health & Biotech sectors and strictly exit a given stock when an approx. 5% gain or loss occurs. I do brief research on those that I'm not familiar with by looking at levels of debt, P/E's, trading history & balance sheet strengths.
I really enjoy the Game as it aligns itself very closely to the live real-world trading, it helps me to ‘get to know' a stock & there has been, on more than one occasion, a stock played in the Game has ended up being included in my SMSF portfolio."
Tyrone Level ~ Rob from Queensland
Portfolio Value: $57,525
Rob has played the last 4 Games and as he says this is by far his best result. He spent approximately 8 hours at the start of the Game analysing the charts of relevant companies.
Strategy: "…I was looking for charts where the price had settled around a support level for an extended period. When the price starts to rise, the RSI and MACD are also moving up into positive territory. ASB - Austal and AWC - Alumina stood out at the start of the Game and I held them from start to finish. They were my best performers, and I stuck to my strategy believing with a bit of luck I could catch the leader.
I firmly believe that the price trend and long term trend of the momentum indicators are the most important factors when determining an investment. I do not take any notice of press reports or recommendations. It just becomes noise."
The company list has been updated for the entire Game period: 27 Feb – 11 Jun. We have also included a hot & cold list for the Game period.
A final chance to win…fill in this very short survey and get the chance to win a $100 gift voucher.
See you in the next Game,
The Games Team
For feedback or questions please email: firstname.lastname@example.org
*Dates subject to change without notice. Participation in the Game is subject to acceptance of the Game Rules.
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