the ani fund…

27 10 2008

with a baby to fend for now, have been mulling over the idea of actually putting our (as yet rather meager) savings to work. right now, these are just sketchy thoughts, haven’t really worked out a plan. started learning the basics from the Fool, and also discovered this interesting stock game. it basically presents you with an actual historical chart of a stock’s performance, and then lets you buy and sell that stock, starting with a virtual kitty of $10,000. it also shows you a running comparison of how your buy/sell strategy is doing vs. a simple buy-and-hold strategy. one thing i realized playing the game a few times is that, barring some catastrophe, you can generally make money off of pretty much any stock, provided you have some patience, and a bit of luck. although the game is designed to test out the theory of technical analysis of stocks, which studies whether predictions of future performance can be made based on the past track record of a stock (or other security), i found myself mostly ignoring the data from the past, and using only the local variations in price to make buy/sell decisions. pretty interesting game, overall. have decided to start a virtual portfolio.