Game 2, 2022 registrations open on July 7
- Game dates: 11 August - 24 November 2022
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Sharemarket Game news
Read the latest tips and updates for the Sharemarket game
Movers and shakers
The first month of the 2023 Sharemarket Game was a baptism of fire for participants – but volatile conditions led to solid wins for some.
A wild ride in March
March was a rollercoaster ride as the collapse of the Silicon Valley Bank (SVB) and New York’s Signature Bank stirred up the sharemarket. While policies enacted by the Biden Administration appear to have shored up the US banking system, there are fears that the collapse could lead to economic slowdown later on.[1]
There’s a little good news on the inflation front in Australia, with February’s Consumer Price Index (CPI) falling to 6.8%, its second consecutive decrease since January (7.4%) after it peaked at 8.4% in December 2022.[2] Mortgage payers had cause to celebrate in April when the Reserve Bank paused its run of rate increases. Whether inflation continues its downward trajectory – and what effect that has on the market – remains to be seen.
| Position | Participant name | Portfolio value as at 05/04/2023 |
| First | Learner | $62,019.39 |
| Second | Goldierocks | $60,529.67 |
| Third | LobsterJoe | $59,706.42 |
| Most improved | Foster | $47,740.45 (as at 29/03) |
Lessons learned
Our top participant, Learner, is proof that there are bargains to be had during volatility. The New South Wales-based participant purchased resources, energy and gold stocks during a dip – and these stocks are currently riding high, putting Learner in first place with a portfolio value of $62,019.39.
Learner’s strategy has been to concentrate on a narrow range of sectors and to stick to a buy and hold strategy. Her only sale so far was of energy stocks for a tidy profit. A more diverse portfolio may prove safer in the long term, as any downturn in the resources sector could have a big impact.
Goldierocks’ portfolio is just right
Goldierocks, our second-placed participant, has also focused on resources. As her name suggests, she’s gone for gold – gold miners that is. That’s put a shine on the South Australian’s portfolio, valued at $60,529.67 as at 4 April.
Investors often turn to gold during times of high inflation or global uncertainty.[1] The US bank collapses were enough to give investors the jitters and search for safe havens, increasing the gold price. So investors in the precious yellow metal have, er, struck gold. For now.
In third place was LobsterJoe, who hails from New South Wales. Their portfolio has made solid progress and was valued at $59,706.42 at last count.
Most improved holds their ground
Our most improved participant for the game’s first month was Forster, whose portfolio was valued at $47,740.45 as at 29 March. Forster managed to hold their ground despite a bumpy ride. Like our leading participants, they also focused on resources and used a buy and hold strategy.
Over the short term, it’s normal for shares to be volatile. However, shares may provide stronger returns compared to other asset classes over time. Of course, other factors – such as the type of shares, the economic environment and whether an investor’s portfolio is diversified – will influence a portfolio’s performance.
[3] https://www.forbes.com/advisor/investing/gold-inflation-hedge/#:
And the winners are…
Our winners of Game 1, 2022 Sharemarket Game managed to survive a volatile market by devising smart strategies, then sticking to it. Here’s what was behind their success.
Game1, 2022 Sharemarket Game had a few thrills and spills for participants, as the Australian share market yo-yoed its way through geopolitical turmoil and the ongoing pandemic. The results of the Game revealed once again the value of experience, a well-planned strategy, and the sense to stick to it.
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| Prize | Player name | State | Final portfolio |
| First | CengizKhan | NSW | $61,028.82 |
| Second | Scavenger | NSW | $57,614.40 |
| Third | wwright | ACT | $57,072.68 |
| League 10 or fewer members | AwesomeASXTraders | NSW | $51,892.29 |
| League 11 or more members | BFF2701_2022S1_Fri15 | VIC | $48,258.51 |
CengizKhan reigns supreme
Despite other participants’ valiant efforts, none managed to knock our winner, CengizKhan, off the top spot. A Sharemarket Game veteran, Cengiz first discovered the fun of the Sharemarket Game back in high school, participating again with colleagues in 2015.
After researching technical analysis and deciding it wasn’t for him, Cengiz discovered what’s known as a momentum strategy. The theory behind this strategy is to attempt to buy stocks during short-term uptrends and sell them after they have peaked. Cengiz also took a concentrated approach by focusing on certain sectors – in this case, energy and mining. He validated the choice of this industry by looking at the geopolitical situation, realising that the impact of the war in Ukraine was likely to continue for the duration of the Game.
Cengiz also placed stop losses on his stocks at 2% under the entry price – so if the stock price fell by this amount he would sell it, limiting his losses. Occasionally, if the price of this stock recovered, he would attempt to buy it again at a lower price.
This strategy may work in a short timeframe like the Sharemarket Game. But remember, investing in the sharemarket is a long-term proposition. Momentum trading can be risky as you can buy too early or sell too late, crystallising your losses. And in real life it’s important to ride out peaks and troughs over years, rather than selling stock during turbulent times.
Scavenger forages some winning stocks
Robert, aka Scavenger, is also a seasoned participant in the Sharemarket Game with at least 10 games under his belt. His experience paid off – putting him in second place overall with a portfolio valued at $57,614.40. Robert invested the largest percentage of his time at the start of the Game creating a watchlist of stocks, then did a brief check of his portfolio each week, adjusting where necessary.
Robert rightly took the view that energy and food stocks would rise in value because of supply shortages. His plan was to focus on coal and oil stocks and Exchange Traded Funds (ETFs), holding onto them while their prices remained high. He also purchased a strongly performing internet stock at the beginning of the game but decided to sell it after it steadily underperformed over time.
Robert’s greatest lesson for this Game was learning to ignore small fluctuations in the day-to-day prices, and focus instead on the overall trajectory of the stock or ETF.
Wayne’s world
In third place was ACT participant Wayne, who participated under the pseudonym wwright. Wayne wrapped up the Game with a portfolio valued at $57,072.68 – just a few hundred dollars away from runner up Scavenger.
Wayne’s strategy was to buy and then hold companies that provided the best chance of upside, yet were stable enough to weather current market volatility. He selected his investments carefully, choosing companies that met some value-based criteria. He also took a contrarian view of the economic narrative, which in his view assumed “…a pain-free climate transition and reversal of globalisation.”
He focused on profitable Australian companies within the energy and commodities sectors, with a strong dividend track record, low debt and a low P/E (price to earnings ratio). While he was tempted to change his strategy and rebalance his portfolio, he held his course – and the result was a strong finish.
Why our winners differ from the final leaderboard
This year, the highest valued portfolio belonged to a financial services professional. While our rules allow people who work in financial services to participate in the Sharemarket Game, they are not eligible for prizes. This is why we haven’t listed Jack Cherry as our winner. But we’d like to congratulate him for achieving the highest value portfolio in this round, at $62,095.43 – an amazing total! In third place, we had sell lowww who is an ASX employee and therefore not eligible for prizes either. We congratulate him on a great result with a final portfolio value of $60,498.56.
CengizKhan strikes again
Our national prize-winner, CengizKhan was also behind the winning league team in the 10 or fewer active members’ category – AwesomeASXTraders. The team finished the game with a portfolio of $51,892.29. Cengiz says he was motivated by the enjoyment of ‘showing off’ with his mates. The team enjoyed plenty of good-natured competition, and also shared ideas and research over their social media.
AwesomeASXTraders took on a similar strategy to Cengiz’s solo approach – seeking to buy stocks that were rising in value and selling them when they started to fall. They also focused primarily on the energy and mining sectors. And they turned to academic research to validate their investment strategies.
Monash Uni in a league of its own
Meanwhile, the winner in the 11 or more active members’ category was Monash University league BFF2701_2022S1_Fri15, who finished the Game with a portfolio valued at $48,258.51.
The team was led by Philip, who teaches BFF2701 Equity Markets at Monash – an undergraduate course that introduces students to the design of equity markets. In one assignment, Philip asked his students to sign up to the ASX Sharemarket Game and evaluate their trading and investment performance.
Being part of the Game wasn't a prerequisite for the class, as they were able to map their progress on paper. However, Philip found that the students preferred to use the Game platform. He also discovered that trading while part of a league helped his students to stay motivated.
Each student chose their own strategy. Some preferred to use charts while others took a fundamentalist approach, trying to identify under or overvalued stocks.
“The ASX Sharemarket Game is fantastic for discovering whether you can develop a sustainable competitive advantage in investing,” says Philip. He advises participants to devise an investment strategy before the Game and stick to it. Then, at Game’s end, they can either persist with it or devise a new strategy to test in the next Game.
On that note, if you’re a student or staff member at a university, the next round of the Sharemarket Game is going to include a new prize – one for the best performing individual university participant. So to all you students and academics out there, start getting a team together and be ready to join in the fun in round two of the 2022 Sharemarket Game. Registrations open on 7 July.
Team members from Equity Mates will also sign up to participate in the Game. They will produce regular podcasts to discuss how they are going and the decisions they are making.
Comedian v Economist brings you an entertaining rundown on the macroeconomic landscape to demystify the world of money and help you get a handle on the bigger picture. Adam, the comedian, and Thomas, the resident economist will aim to arm you with the knowledge to become a better investor.
Maddy and Sophie, the You're in Good Company hosts, are two friends, who've seen first-hand how intimidating, confusing and daunting the finance world can be and they know they aren't alone. They are excited to have partnered with ASX to take part in the Sharemarket Game and join the conversation about investing.
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Inflation! Are home buyers about to get sucker punched?
Inflation came in scorching hot, but will it last and what does that mean for interest rates? And what happens to first home buyers if rates rise? All this and more on this week’s Comedian V Economist.
Previous episodes - You're in Good Company
Where to invest during a bear market
Maddy and Sophie discuss different companies and industries that they think might outperform in the current bear market while they add them to their virtual Sharemarket Game portfolio.
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