Korean Air Line (KRW)

If you’re a high school student competing in a class stock market game and you’re wondering, “How do I win my class stock market game?” or searching for “top stocks to buy now,” then Korean Air might be a stock to consider. In the high-risk, high-reward world of the stock market game, where short-term gains matter, momentum trading on stocks like Korean Air can give you the edge you need to win.

Korean Air has managed to thrive despite the pandemic, unlike other airlines. In the early days of COVID-19, air travel took a major hit, but the company quickly adapted by expanding its cargo business. As the world scrambled to manage supply chain issues, airfreight became an even more valuable service, and Korean Air capitalized on it. While other major airlines in Asia like Cathay Pacific in Hong Kong were struggling, Korean Air’s cargo operations surged by 42% compared to 2019. “Korean Air’s ability to seize cargo opportunities when others were grounded set them up for impressive growth,” says aviation analyst Jake Miller.

For your class stock market game, where you need a quick boost, Korean Air’s short-term momentum could be a winning move. The stock benefited from high airfreight rates that were twice as high as in 2019, driving profits to nearly $551 million in the second quarter of this year. This kind of dramatic rise is perfect for a stock market game where short-term gains can mean victory. However, it’s important to remember that this high-risk, high-reward approach is not recommended for long-term investing. In long-term investing, strategies like diversification are key.

So, what’s the difference between short-term trading for something like your class stock market game and long-term investing? Short-term trading involves buying stocks that have the potential to quickly rise in price, then selling them for a fast profit—this is great for games, competitions, or day trading. But in the real world, most investors focus on building a diversified portfolio over time. Diversification means spreading your money across different kinds of stocks, reducing the risk if one stock performs poorly. A good example of this would be investing in an S&P 500 index fund, which includes shares of 500 major U.S. companies, giving you a solid foundation for long-term wealth.

Even though Korean Air’s current success is largely due to short-term factors like cargo demand, there’s still room for growth as passenger travel picks up in Asia. Passenger revenue was up 307% year over year, and revenue from popular Southeast Asian tourist routes surged 554% as travel restrictions eased in countries like Thailand. This gives Korean Air the potential for further recovery in the coming months, making it a solid momentum stock.

“Korean Air is uniquely positioned for a strong recovery, with both cargo and passenger revenue climbing back,” says stock market analyst Sarah Kim. If you’re using a momentum trading strategy, this stock offers both short-term gains and the chance to ride the reopening of Asia’s travel industry. Just keep in mind, this high-risk approach is best for your class stock market game and not for your real-world financial future.

For long-term success, focus on building a diversified portfolio that reduces your risk. But to win the stock market game, Korean Air could be a top stock to consider right now.