TIPS IN PLAYING TRADEHERO

TRADEHERO is a trading app available for IOS and Android devices. This is a virtual stock trading simulation where players can buy and sell shares of stocks at Stock Markets around the world at real time prices. Players are given initial funds of $100,000.00 which they can use to buy stocks.

The goal here is growing your money by buying stocks at one point and sell them at some point when the price goes up. There is where the gain is.

In real life, the strategy is buy stocks from companies, with strong financial record, regularly - say P5,000 every month. This is the averaging method. This method helps capture the average prices of the stocks under the assumption that historically stock prices naturally goes up over time. So when the prices are low you continue to buy and also at times when the prices are high because in the end you will capture the average price and gain from appreciation in the price. This will secure the profitability of your investment in the long term. 

However, the volatility (fluctuation in the price)of those kind of companies is low. That means while you can gain from the long term increase in the price, the chances of seeing a sharp decrease in the price when you can buy more and the chances of seeing a sharp increase in the price when you can sell more, is very slim. The higher the volatility of the investment the higher the opportunity of earning huge amounts, the higher also the risk of loss. 

So given these, I will combine two strategies. My main portfolio will be invested in companies with strong financial record but I should set aside some money that I can afford to risk at a much riskier portfolio that could give huge profits as well. I will set aside a specific sum to invest at more volatile stocks and whatever income I get from them I will invest on my main portfolio.