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View Full Version : I have 2 months, $250,000 and I can have 100% risk how do i invest?


PhiGamTN
09-13-2005, 02:33 PM
So i'm taking an investments class and one of our incentives for a stock market game we're playing is that the top 3 teams get very nice prizes (an A in the class) the final report on the project doesn't require us to justify our trades or to have made money... it's simply picking a portforlio of 10 stocks at the end. So basically i have $250,000 I can get a magin account with a total of $375,000
I can invest in basically anything, futures options shorts commodities etc... doesn't matter if I lose all the money or not, only goal is to make as much money as possible in 2 months or so...

How do I invest my moeny?

only stipulation is I can't invest in any stocks less then $5 although if I short them it's ok for them to go under $5

sammysusar
09-13-2005, 10:12 PM
I would assume you just want to invest in the most volitile stuff possible. Options with very short term expirations that are far from the strike price can produce huge returns but most likely result in a 100% loss. For example if a stock is at 100 now you can purchase an option on that stock closing below 80 before the third week of october for like .20. Most likely you will lose everything. But if the stock dropped 25 points you would have something like a 2500% return.

MrMon
09-13-2005, 10:25 PM
Since this is a game and not real life, find a hot IPO. Buy everything on open, sell off after the rise. No way you could do this in real life, due to allocation limitations, but it should work great in a stock market game.

cdxx
09-15-2005, 04:19 AM
for the next two months, bet half against the dollar and with the rest buy a cyclical that's been hamered.

joshman1204
09-15-2005, 02:08 PM
This is easy ...

250k on red!

Nepa
09-15-2005, 05:26 PM
Look at trading options and futures. But remember that there is a good chance that you could go broke in 2 months trading options.

PhiGamTN
09-15-2005, 06:15 PM
How would I go about betting against the dollar (it's still early in the class /images/graemlins/smile.gif )

regular
09-15-2005, 06:47 PM
short BIDU, anyone think that stock will collapse soon?

Sniper
09-16-2005, 08:56 AM
[ QUOTE ]
I can invest in basically anything, futures options shorts commodities etc... doesn't matter if I lose all the money or not, only goal is to make as much money as possible in 2 months or so...

[/ QUOTE ]

Can you clarify whether you have to simply pick 10 stocks and hold them for 2 months, or whether you can actively trade during the 2 month period?

Obviously to boost your returns (since you imply no regard for risk) you should look to maximize your market leverage using futures (if that is an option) and margined highly volatile stocks, assuming you can actively trade.

PhiGamTN
09-16-2005, 09:31 AM
I can actively trade... 10 have to be in at the end, but they can be added 1 share per each the last day. Futures are available but I don't know a whole lot about them yet, i've been reading ahead in the text though.

Sniper
09-16-2005, 09:40 AM
[ QUOTE ]
I can actively trade

[/ QUOTE ]

Assuming this is setup on one of the college market gaming simulators, you should actively trade the markets when you are not in class.

You might even use a simple "trading the opening gaps" strategy, if you don't have an early morning class.

For some other thoughts, check out Dan's unofficial 2+2 trading competition thread.

kagame
09-17-2005, 06:18 PM
too late