1.
Read the rule book! It includes a whole lot of strategy
and trading tips.
2.
Use all of your Ask Frank opportunities. As a general rule
those who do score
well. Gain maximum advantage by taking that advice at critical moments in the
game, like when market prices appear very low or high. If
you are playing the game for the first time, use one of
your Ask Frank options at the start of your first turn.
3. Use the Wild Cards,
and use them wisely. For example, if you think shares are
going to rise at the next change, buy them at the start of
turn, them immediately use the Share Wild Card, to
hopefully increase the value so you make a profit and
other players miss out on the opportunity. If you hold
derivatives, use the Wild Card (shares or money market)
before you have to close out the contract. One tactic may
be to Ask Frank, make a transaction, then use a Wild Card
all in the same turn.
4.
Opt into Kiwisaver. The dollar for dollar
employer subsidy and $1,000 government kick-start make this
a worthwhile investment.
5. Players with high
salaries can make a lot of money buying staff shares (at a
50% discount to the market price). The entitlement to
staff shares increases from 5000 shares to 15000 when a
players salary is +$55,000. It's a good strategy to make
it a goal to reach that
$55,000 level early in the game so you can
maximise the value of your paydays and staff share buying
opportunities throughout the game.
6. On average, the
best returns are being made from investing in shares but
it is the most volatile so you need to pick your buying
opportunities.
7. Take turns quickly.
The faster you play, the more market prices change, and
the greater the money making opportunities. Clock ticking
sounds if players take more than 1 minute to complete
their turn. This is a signal to get a hurry-along. Decide
your next investment before your turn comes round. Good
players takes less than 15 seconds to take their turn.
8. Try a one player
game to become more familiar with the game and to test your skills against the markets. (One player
games do not register on the Honours Board or Hall of
Fame.)
9.
Most players who lose money do so because they borrow
heavily to buy property that subsequently falls in value.
If you buy property with debt be very careful not to buy
it at the top of a price cycle.
Happy investing -
remember the more you play, the better your scores will
become. We are seeing a significant increase in player IIQ
the more they play, and a rapid increase after only a few
games as players become more familiar with the way the
investment game works.
The way you win in the
investment game is exactly the same way you win in the
real-life investment markets. This game is a simulation -
it simulates reality. If you learn how to accumulate
wealth in the investment game you will be able to do so in
real life.
A simple investment
strategy
This is what I suggest
as an investment strategy.
#1. Get a good paying
job. Do that by gaining an education (Massey University
education credits in the game). That helps you gain a good
paying job and promotions up the pay scale and the
opportunity to buy more staff shares.
#2. Save as much as
you can. Park those savings in the bank earning interest.
#3.
INVESTMENT allows you to use the very same strategies the
super-rich use to make money and accumulate wealth. So
which strategy is best? The answer to that is simple - it
all depends on the market conditions at the time, an
investors (players) attitude to risk, and their investment
knowledge. A strategy that works in one game, may not work
in another and there will be times when pursuing a higher
paying job and sitting on cash and waiting for
opportunities to appear is the best strategy.
The
best investment strategy is one tailored to the market
conditions at any one time. For example,
-
Buy
and hold property when property prices and interest
rates are low.
-
Trade
property when property prices are rising and interest
rates are high.
-
Buy
and hold shares when share prices are low (as measured
by the market PE multiple and dividend yield – which
are displayed under the share price graph).
-
Stay
out of the investment market when there are no obvious
opportunities. Instead focus on making more
work-related income.
-
Speculate
on derivatives (with care!), when the money market and
share market are at extreme turning points, or use as
a hedge to reduce exposure to risk.
Frank Newman
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