lowtrade, surprisingly the business law professor for this summer semester created a paper trading game to "introduce students to the stock market." I say 'surprisingly' because it's not something I expected from a business law professor; economics maybe or perhaps in another college course during the pursuit for a business finance degree. Needless to say, I'm excited. Extra credit will be given to the top 3 students who finish.
So, let me get to the point here. Each student will start with a $100,000 starting balance and a margin for $100,000 at a interest rate at 1.5%. I'm unsure of how to diversity the paper trading portfolio percentage wise. I don't diversify currently because I don't have enough capital that would make it justifiable.
So; do you diversify and if so, how so?
I'm also unsure weather I want to trade on margin. Do you have any opinions on margin trading?