Stock Market Contest

[l0cke]

My school is having a stock trading contest on one of those stock simulation websites. We start with $1,000,000 and whoever has the most money on May 4th wins. I only get one account.

I'm thinking my best strategy is to buy $1M worth of shares of something I think I going to go up. Anyone got any suggestions?

Also, I can do margin trading and futures and basically anything you can do in real life, so there's probably something there I'm missing. I even get daily compounded interest, so the more money I can make the faster the better.

EDIT: It's over, I didn't win. See pg 2.

 

[Newell Steamer]

My school is having a stock trading contest on one of those stock simulation websites. We start with $1,000,000 and whoever has the most money on May 4th wins. I only get one account.

I'm thinking my best strategy is to buy $1M worth of shares of something I think I going to go up. Anyone got any suggestions?

Also, I can do margin trading and futures and basically anything you can do in real life, so there's probably something there I'm missing. I even get daily compounded interest, so the more money I can make the faster the better.

This would be the best strategy, to prove to your teacher that you are a reckless mongoloid.

You have $1M - diversify.

If you dump everything into ONE company, you may very well nose dive. Because in these types of simulations, the teacher/professor will mess with elements behind the scenes to screw you over. They aren't looking to see how you fair in calm waters, they will cause turmoil in these simulations - because that is what the real market is like.

I am guessing this simulation is over the course of a few weeks. So, dip your toes the 1st few weeks and see what is happening, and prepare to hedge/counter hedge accordingly.

EDIT: Duh - you have a month,.. watch it daily and hedge/counter hedge.

 

[Nograts]

He only has a month, and it's fake cash. I say go all in on a dildo manufacturer and let it ride.

 

[l0cke]

This would be the best strategy, to prove to your teacher that you are a reckless mongoloid.

You have $1M - diversify.

If you dump everything into ONE company, you may very well nose dive. Because in these types of simulations, the teacher/professor will mess with elements behind the scenes to screw you over. They aren't looking to see how you fair in calm waters, they will cause turmoil in these simulations - because that is what the real market is like.

I am guessing this simulation is over the course of a few weeks. So, dip your toes the 1st few weeks and see what is happening, and prepare to hedge/counter hedge accordingly.

I should have specified it's not for a class or a grade or anything. It's just a campus-wide contest sponsored by one of the business clubs that I'm not in, with prizes at the end of a month.

The stock market simulator uses real data with a delay of about 20 seconds.

 

[ultimatebob]

This would be the best strategy, to prove to your teacher that you are a reckless mongoloid.

You have $1M - diversify.

If you dump everything into ONE company, you may very well nose dive. Because in these types of simulations, the teacher/professor will mess with elements behind the scenes to screw you over. They aren't looking to see how you fair in calm waters, they will cause turmoil in these simulations - because that is what the real market is like.

I am guessing this simulation is over the course of a few weeks. So, dip your toes the 1st few weeks and see what is happening, and prepare to hedge/counter hedge accordingly.

If you're trying to win the simulation with the best return, diversification is actually bad idea for a short term game. Odds are that at least one or two of the stocks you pick will underperform the market and kill your return even if you get lucky and pick a few high flyers.

If the OP is smart, he'll create multiple accounts and just "turn in" the one that performs best

Does the game let you invest in options? If so, try trading them on a volatile stock like Tesla. You'll either make a fortune or lose it all. Did I mention that you should create multiple accounts?

 

[Newell Steamer]

I should have specified it's not for a class or a grade or anything. It's just a campus-wide contest sponsored by one of the business clubs that I'm not in, with prizes at the end of a month.

The stock market simulator uses real data with a delay of about 20 seconds.

Then go nuts.

Weed.

Dump it all on weed.

http://investorplace.com/2014/03/hottest-marijuana-stocks/view-all/#.VSbffvnF9lw

 

[DrPizza]

I should have specified it's not for a class or a grade or anything. It's just a campus-wide contest sponsored by one of the business clubs that I'm not in, with prizes at the end of a month.

The stock market simulator uses real data with a delay of about 20 seconds.

Thus, there's no way the teachers can reasonably manipulate it.


It's fake money. Thus, there's zero real risk, and everything to gain if you win. That spells high risk. Penny stocks. While others are going into oil or medical, you just put minimal effort into finding a really cheap stock that's relatively stable, but fluctuates often enough that you have about a 50/50 chance of coming out ahead. Heck you could get something with an 80% chance you lose everything, 20% chance you double your money.

 

[Newell Steamer]

If you're trying to win the simulation with the best return, diversification is actually bad idea for a short term game. Odds are that at least one or two of the stocks you pick will underperform the market and kill your return even if you get lucky and pick a few high flyers.

If the OP is smart, he'll create multiple accounts and just "turn in" the one that performs best

Does the game let you invest in options? If so, try trading them on a volatile stock like Tesla. You'll either make a fortune or lose it all. Did I mention that you should create multiple accounts?

I was in raging moron mode,.. I missed the part about the May 4th date.

 

[Schfifty Five]

My school is having a stock trading contest on one of those stock simulation websites. We start with $1,000,000 and whoever has the most money on May 4th wins. I only get one account.

I'm thinking my best strategy is to buy $1M worth of shares of something I think I going to go up. Anyone got any suggestions?

Also, I can do margin trading and futures and basically anything you can do in real life, so there's probably something there I'm missing. I even get daily compounded interest, so the more money I can make the faster the better.

Buy a shit ton of options expiring in May for AAPL. Pray that their earnings report on 4/27 is going to be killer. Profit!

 

[l0cke]

If you're trying to win the simulation with the best return, diversification is actually bad idea for a short term game. Odds are that at least one or two of the stocks you pick will underperform the market and kill your return even if you get lucky and pick a few high flyers.

If the OP is smart, he'll create multiple accounts and just "turn in" the one that performs best

Does the game let you invest in options? If so, try trading them on a volatile stock like Tesla. You'll either make a fortune or lose it all. Did I mention that you should create multiple accounts?

I could create new accounts, but I can only "turn in" the one with my name@edu student email on it. So if something goes crazy on an alternate account it wouldn't matter. I could probably convince my friends to sign up under their emails, but then they would win.

I can invest in options, or short stocks, or currencies, or foreign exchanges, or almost anything you can imagine. I don't even know what half this stuff is.

 

[ultimatebob]

The best way to manipulate these stock games in the past was to short sell a stock that was about to post a big dividend and then cover the short when the stock went down by the amount of the dividend.

Most stock games are smart enough to disallow this type of trading now.

 

[DesiPower]

A source for quick investment ideas with good track record is Mad Money. If you are not well versed with margin and future then I wouldn't bother, also, imho, 1 month does not give enough time to play around with margins and futures.

 

[IHateMyJob2004]

1 months is an asinine contest. It's just luck.

Pick a super tiny penny stock (literally trading for less than 1 cent) and buy just that.

 

[Printer Bandit]

where to find good penny stocks?

 

[IHateMyJob2004]

where to find good penny stocks?

They don't exist. Good ones that is. Just find one that fluctuates wildly and "buy" it. And hope at the end of the contest that it goes up 10x.

 

[holden j caufield]

gamble on biotech or pharma company they move a lot

 

[SSSnail]

Since this is fake anyways, go read up on any penny stock forums and put all of it in the one that you think is most promising. To help you along, look at pharmaceutical sector. Win big or go home.

 

[iCyborg]

Is forex allowed? I would use some high leverage, like 200:1, pick some pair and hope for the best. There's no strategy in a 1-month contest anyway, so either you go bust, or you have a fairly good chance of winning.

If you want only stocks, then go for some healthcare/pharma small company as people suggested. And use options for more leverage, it's not real money anyway.

I wonder how detailed the simulation is. Does it just take say stock price and that's it? For small cap companies and $1,000,000 orders, ask/bid spread would be a major factor, if you can fill the order at all...

 

[l0cke]

Is forex allowed? I would use some high leverage, like 200:1, pick some pair and hope for the best. There's no strategy in a 1-month contest anyway, so either you go bust, or you have a fairly good chance of winning.

If you want only stocks, then go for some healthcare/pharma small company as people suggested. And use options for more leverage, it's not real money anyway.

I wonder how detailed the simulation is. Does it just take say stock price and that's it? For small cap companies and $1,000,000 orders, ask/bid spread would be a major factor, if you can fill the order at all...

Not real(?) forex but I can buy spots like this:

I'm not sure about ask/bid spread. I don't see anything about it so I would assume it's a simple simulation.

Here's another screenshot of other things I can trade:

It's also worth mentioning that the minimum stock price is 0.25.

 

[Jeff7]

I should have specified it's not for a class or a grade or anything. It's just a campus-wide contest sponsored by one of the business clubs that I'm not in, with prizes at the end of a month.

The stock market simulator uses real data with a delay of about 20 seconds.

Can you do a slightly slower version of high-frequency trading?
It's gotten pretty popular since 2010 or so, especially HF quoting, which sounds to me like a legal type of DDOS attack.


Or go boring and get a mutual fund or Berkshire Hathaway shares.


Or put one of the indexes in a spreadsheet and number them, then choose 10 randomly, and buy&hold until the end of the contest.



These games don't teach long-term investing. :\

 

[ultimatebob]

I'm still liking Tesla options FTW

 

[ultimatebob]

They don't exist. Good ones that is. Just find one that fluctuates wildly and "buy" it. And hope at the end of the contest that it goes up 10x.

I'm not quite so sure about that. Sirius XM's stock was down to 12 cents before it rebounded to almost $4. I made a killing with that stock when Anandtech did a stock contest awhile back.

 

[mtbiker99]

Find a tech penny stock, and spread the rumor that apple is buying them. Spread it around to media sites. I hear Rolling Stone Mag doesn't do fact checking. when the stock goes through the roof, sell.

 

[FelixDeCat]

I'm still liking Tesla options FTW

lol

 

[jagec]

Is forex allowed? I would use some high leverage, like 200:1, pick some pair and hope for the best. There's no strategy in a 1-month contest anyway, so either you go bust, or you have a fairly good chance of winning.

This is probably the best bet, since unlike penny stocks you have about a 50/50 shot of being a hero.

Options can also provide this, although you'll need a LOT of leverage if you're trading one of the big boys (like AAPL).

Remember, you're competing against a bunch of other people who ALSO have nothing to lose. You've got to find an even more insane strategy than they will.