Blogger Timothy Sykes is back with his contest picks. Here's his post: I hope everyone tuned in Friday to witness me becoming the first guest to bring female models on CNBC to show off the beauty of stock charts. The audience and the other studio guests loved it so hopefully I’ve started a new trend. We’ll see…This week’s picks are (in order of importance):
I’m not going to tell you anything about these companies other than they are all scheduled to report earnings this week. I’m not being selfish or lazy, but instead of giving you all the information as usual, I’m holding back, encouraging you to find it yourselves. The information is freely available on hundreds of financial websites, but you’ve been spoiled by years of “experts” telling you everything about their favorite picks. I won’t play that game; you need to learn how to do research on your own because that will help you in the real world.
I’m only telling you the symbols because I’m still willing to point you in the right direction, but you will have to decide which plays best suit your personality. I happen to like stock charts and I’m impatient so these plays suit me the best. All of these plays have some interesting charts associated with them that could turn upward in a hurry if their earnings come in better than expected. Some of these charts are breaking out; some are off their highs. Check out their charts and decide which ones you think have the best chance at spiking. You might come to a different conclusion and that’s fine!
Please do understand that it doesn’t matter if the company is worth $50 billion or $1 billion, all that matters is volatility. MCD is a colossal company, but their stock is up nearly 60% during the past year. That’s volatility.
Many people look down on this game because they claim it encourages speculation but disregards important risk management lessons that are crucial to successful investing. That’s baloney! This contest is paper trading at its finest! It gives you the opportunity to test various trading strategies without endangering your real world cash. You can view it as a fun distraction or you can use it to help you understand the markets better. Who knows, this contest might help you discover a strategy that suits you perfectly and will go on to help you earn one million dollars on your own!
As much as the “experts” claim to be all-knowing about their picks, they’re really just making educated guesses based on their own beliefs and those of their research staffs. Unfortunately, their beliefs may not be the same as yours. When you follow them blindly, you miss out on the opportunity to do your own research and learn how the markets really work. Don’t be afraid to buy a stock for any reason whatsoever. Use this contest as an educational tool and the rewards will be yours, whether you win or not.
Timothy Sykes is a hedge fund manager and star of the reality show Wall Street Warriors. He can be reached at www.timothysykes.com.
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