4.5. Methods Selected
As stated at the onset, my goals for this project were to take two
investment strategies and try to make a 10% profit from each of them after
investing an initial $100,000. Of the investment methods I listed, I found two to
be quite feasible for my simulation. A long-term investment for 6 weeks seemed
unlikely to be profitable for such a short term. Day-trading seemed to be for
those with superior skills and a good deal of confidence; both of which, I do not 14
have. Penny-stock trading, although very risky, seemed to be a good candidate
for a simulation. It is not as overly complicated or exhaustive as day-trading and
6 weeks provides sufficient time to get some results, for better or for worse.
Swing trading, since it appears to be ideal for beginners, seemed like a perfect
candidate for a simulation conducted by a beginner. So, penny-stock trading and
swing trading were selected as the two trading methods for this project.