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#1
09-20-2005, 04:18 PM
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Good strategy for stock game?
So some of you may have seen my post below about how i'm playing a stock game and i have 250k to invest for 3 months. there are 2 new stiupulations i can only have 125000 invested in each stock and i can only make 100 trades of which i have made 6.
I think i have hit upon a full proof strategy though, the quotes on the stock game website i'm using (stocktrak) are delayed by 20 minutes and my brokerage account with etrade gives me real time quotes... therefore i know what's going to happne 20 minutes in the future.... so i just find a stock thatis goign to move like 2 points in 20 minutes and invest as much as possibl ein it and then get out 20 minutes later, will this strategy work? 
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#3
09-20-2005, 07:08 PM
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Re: Good strategy for stock game?
short anything that momo's up on bs, I did this back when i was in school and got 1st by a huge margin
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#4
09-20-2005, 08:57 PM
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Re: Good strategy for stock game?
If I was teaching this, I'd either give you an F or an A+, depending on whether I was trying to teach you business ethics or how the real world works. You found a source of arbitrage! Now you've got to maximize your manipulation of it. The 100 trades limit will prevent you from doing this continuously. You want to find the 50 biggest movements in percentage terms in the next 3 months. I'd watch for earnings announcements, results of drug trials for small biotech firms, that sort of thing. The bigger companies' stocks won't move that much on typical events, so use options to leverage your gains.
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#5
09-20-2005, 08:58 PM
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Re: Good strategy for stock game?
VSE (the one used here for the stock competition) has the same delay but your strategy doesn't work. Why? B/C execution is also delayed by 20 mins. So unless you could see into the future, you won't gain any advantage.
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#8
09-21-2005, 08:39 AM
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Re: Good strategy for stock game?
I'm doing the same simulation and currently ranked 3rd at my university. My best advice is to gamble and utilize all your trades. Don't wait for some magical stock to suddenly increase in value. Short stocks that you know are bound to drop (ie ANF) and do it a lot. I put a lot of money in British Pound Futures and Gold Commodities before they rose. It's a game, so you want to go for the max return possible. In real life, your return would match your risk tolerance and how you wanted to invest. For only such a short term period and to maximize your returns, most of your trades will be a gamble and at best speculative IMO.
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