How Alabama HS Senior Scores in the Stock Market Game

The Stock Market Game (SMG) is a curriculum-based teaching tool that allows students to invest a hypothetical online stock portfolio to learn about long-term saving and investing.

SMG Student Spotlight: Zac John Bodley, 18, Senior, Hartselle High School, Hartselle, Alabama

SMG Highlights:

The Alabama Council on Economic Education (ACEE) considers Bodley to be "Alabama's Winning-est SMG student" (usually finishing in the top five in his region).

On April 30, Bodley will receive a special award at the ACEE Excellence in Economic Education Awards Luncheon.

Bodley first won the SMG Alabama State Championship at the age of 12.

Outside the SMG: Bodley currently bats for Hartselle High's varsity baseball team and has a respectable batting average.

College Plans: Bodley plans to attend the University of Montevallo in Montevallo, Ala., on a full four-year academic "MAPS "scholarship, where he will study and play baseball. He expects to be a pitcher and a designated hitter for the Montevallo team. The scholarship includes an International Study Tour of Europe in spring 2009.

The following is the TheStreet.com's interview with Bodley, his father and his initial SMG advisor.

TheStreet.com: How did you get started with the Stock Market Game?

Bodley: Wanda McAbee [Bodley's then teacher-advisor, now SMG coordinator for Alabama] is the one who got me started playing the SMG in the sixth grade. Although I was reluctant to participate, she insisted that it would be great for me. Without her and the game, I would be like most other teenagers who are clueless about the stock market.

My investing has improved with each SMG date, and it will continue to improve. Skills that I have learned by playing the game will last a lifetime.

TheStreet.com: How has your knowledge of investing evolved over the years that you have participated in the SMG?

Bodley:In my first competition I found myself just buying stocks because they "sounded good." They were companies that I shopped at or passed by daily. Needless to say, my knowledge evolved from there. I began doing hours of research, looking at earnings, P/E Ratios... and especially what Jim Cramer had to say. I now, of course, have my own real life portfolio, so my knowledge has greatly increased.

One of my favorite parts of the SMG is the $100,000 I get to spend on stocks. If I had that in real life I could rake in some serious profit. I also like the level of competition. One of my good friends, Laci who is also a great investor, used to give me headaches. For the entire 10 weeks of the competition you could bet we'd both bounce between first and second place consistently.

TheStreet.com: What were the most challenging concepts that you needed to learn to improve your SMG performance?

Bodley: The most challenging market and investment concepts that I had to learn were how to deal with market volatility and how to effectively deal with the 2% brokerage fee the SMG charges.

TheStreet.com: What advise would you give to a new investor -- of any age?

Bodley: The first piece of advice I would give a beginning investor is to start out small. You've got to get the feel for how the market works and the constant curveballs it throws at you in the ways of earnings, interest rates...

Next, I would tell a beginner to do their research. Nothing beats good and thorough research. Also, I would put a great emphasis on diversification. In an extremely volatile market -- like today's -- having your investments spread out between three or more sectors has never been more essential. Lastly, I would tell them not to get discouraged. You are most definitely not going to cash in with every trade, so when the market seems like it's chewing you to pieces, [remember] there is still money to be made.

TheStreet.com: What is your current approach to stock research and selection?

Bodley: I do hours of research before I make my selection. I look at earnings history, when their next earnings report is, P/E ratios, value of the stock versus others in the same sector, recent trend of the stock and [I watch] "Mad Money."

If I can find a stock with positives in all these areas, then it's probably going to be a winner.

TheStreet.com: What have you taught your younger sister about money and investing?

Bodley: I have basically -- along with my dad -- encouraged her to save her money. I also have every intention of getting her involved in the SMG when she enters junior high next year. Then, hopefully, she'll love it and learn as much from it as I did.

TheStreet.com: What are a few of your recent best-performing investments?

Bodley: My best recent investment decision was buying Urban Outfitters URBN at $20 and selling at nearly $32. The reason for buying the stock was that I saw it as a great value. It had a history of great earnings reports and had one coming up, and it had been on a slow down trend... a great time to buy low.

TheStreet.com: What was a recent investment that didn't go well? What did you learn from the experience?

Bodley:The worst investment decision that I've ever made was buying Mamma.com (now Copernic CNIC), when it was extremely overvalued. To make it worse, I was $12,000 ahead in the game with three days left [in the session]. I wanted to break the 50% return mark. I had made 45% the game date before and I only needed $7,000 more to get to 50% in this one.

Needless to say, the entire investment community took their profit, while I was trying to find mine. I ended up in fifth place and I was devastated at my poor decision. I learned to do research, don't buy an overvalued stock and don't jump on the bandwagon.

TheStreet.com: How do you handle stock market volatility?

Bodley: I watch for downward swings and try to decrease my share count and then buy loads of shares when I see an uptrend coming. Particularly, if I believe Ben Bernanke [Fed chairman] will lower interest rates or it's a huge earnings report day, then I'll take a risk and buy huge amounts [of stock] because the market really moves on these days.

TheStreet.com: How do you balance school, baseball and investing?

Bodley: I try to put school first and that is sometimes hard. When you play for Coach William Booth, who has won six state championships, you're naturally expected to make a commitment and be dedicated to baseball.

Fortunately, he is a man of great character and he understands the importance of my academics, for I must do well [in school] to maintain my full academic scholarship to [the University of] Montevallo.

I do my stock research early in the morning while watching CNBC or at night, after a long day of school and a good day of baseball practice.

TheStreet.com: What do you plan to study at the University of Montevallo?

Bodley: I intend to major in biology because I want to later attend medical school and become an orthopedic surgeon. Dr. James Andrews, "the greatest orthopedic surgeon on Earth," performed a UCL reconstruction on my elbow in January 2007. Just seeing how he helps all his patients and cares for them, just gives me the motivation to pursue that career path. I'm also going to play baseball for the University of Montevallo. Then I can take the millions I make from being a surgeon and put it in the stock market!