What can you do with 10K in 3 months?

[thesource]

I'm playing that CNBC trading game right now and in 7703th place which is just outside the top 1% bracket. Some of those fools are making serious money in short order on there!

[BERNIE MOSFET]

Taxes are simply a result of short term versus long term. Not to curb shorting, shorts are an integral part of an efficient market. I was appalled when we temporarily banned shorting during the crisis, that's some straight up chinese shit. Yes shorting is extremely commonplace. Any equity hedge fund reduces market risk by shorting ... That's how the term was invented. Even long only managers utilize 130/30 or 120/20 funds to improve risk return by shorting. Even long only asset managers who manage to a benchmark are short any names that they don't hold but are in their benchmark.

Some unfamiliar jargon there, but that's good. I've pilfered bits of info here and there on the interwebs, but do you have any recommendations on material to study to really get a firm grasp of everything involved? Textbooks, or the like?

but if you can do it in the game can't you do it for real? I mean I know that you are probably taking risk that you would never really take...

but the game is supposed to be realistic and mirror reality I thought.

Yes, it's easy to game these. I was debating posting that earlier for everybody.

Exactly. I honestly expected someone (likely slow99) to call BS on it.

The main flaw I'm exploiting is presumed liquidity. Bid-ask spreads are wide when liquidity and volume is low. I'm literally looking at the spreads of really slow stocks to tell me what the stock price will likely do, and buying or shorting accordingly. Without real buyers and sellers, I can buy and sell 40,000 shares in an instant whereas in real life it could take weeks.

[2165 Turbo Rail]

ahhhhh ok well just so there is no confusion... i'm not gaming the game... lol I know that my negative numbers might look like I'm doing some funny biz but I'm not

[slow99]

but if you can do it in the game can't you do it for real? I mean I know that you are probably taking risk that you would never really take...

but the game is supposed to be realistic and mirror reality I thought.

No, you can "game" (manipulate) these contests.

[slow99]

You and me both. I know what I am doing is unrealistic, and I know why. I've explained it to a few people. I figured I'd tell what I'm doing after the game is over.

Yes, it's easy to game these. I was debating posting that earlier for everybody.

[2165 Turbo Rail]

You and me both. I know what I am doing is unrealistic, and I know why. I've explained it to a few people. I figured I'd tell what I'm doing after the game is over.

but if you can do it in the game can't you do it for real? I mean I know that you are probably taking risk that you would never really take...

but the game is supposed to be realistic and mirror reality I thought.

[BERNIE MOSFET]

damn, sucks for you then huh... if you could do this for real you could make some cash... and some more cash, and some other people some cash and you more cash.

If I thought it was possible to do what you have done on 10k I'd be all for it with real money (wouldn't we all )

You and me both. I know what I am doing is unrealistic, and I know why. I've explained it to a few people. I figured I'd tell what I'm doing after the game is over.

[slow99]

Thanks for chiming in. I hadn't heard of float yet, so I didn't know to look at it.

Is shorting really pretty common, then? Are the tax implications to curb the practice?

Taxes are simply a result of short term versus long term. Not to curb shorting, shorts are an integral part of an efficient market. I was appalled when we temporarily banned shorting during the crisis, that's some straight up chinese shit. Yes shorting is extremely commonplace. Any equity hedge fund reduces market risk by shorting ... That's how the term was invented. Even long only managers utilize 130/30 or 120/20 funds to improve risk return by shorting. Even long only asset managers who manage to a benchmark are short any names that they don't hold but are in their benchmark.

[2165 Turbo Rail]

Nope. I'm really good at this stock game, but I promise these results are not typical of real life.

damn, sucks for you then huh... if you could do this for real you could make some cash... and some more cash, and some other people some cash and you more cash.

If I thought it was possible to do what you have done on 10k I'd be all for it with real money (wouldn't we all )

[BERNIE MOSFET]

Mosfet do you do stocks with your real money?

Nope. I'm really good at this stock game, but I promise these results are not typical of real life.

[2165 Turbo Rail]

Mosfet do you do stocks with your real money?

[2165 Turbo Rail]

WTF are ya'll saying! ? I'm just happy to be back in the top 15

*edit FML... back to number 23 now

[BERNIE MOSFET]

As long as you are shorting something with decent float, I don't see that as a big risk. Short loss is not bound at zero, has higher tax implications, and goes against market trend. Of course, it's inherently margined.

Thanks for chiming in. I hadn't heard of float yet, so I didn't know to look at it.

Is shorting really pretty common, then? Are the tax implications to curb the practice?

[slow99]

I think the real risk in this comes from brokers calling in the borrowed stocks and forcing you to cover them while you are upside down on the value. (As opposed to simply holding a stock with no expectation of having to do something with it.)

As long as you are shorting something with decent float, I don't see that as a big risk. Short loss is not bound at zero, has higher tax implications, and goes against market trend. Of course, it's inherently margined.

[BERNIE MOSFET]

so cover means you earn money if the shares go up

Short means you earn money if the shares go down right?

Not quite - shorting is borrowing shares and selling them at a given price while expecting the market value to go down. You then cover (buy) the stocks that you borrowed at a later time.

If the price goes up, then you have to cover the borrowed stocks at a higher cost than you borrowed them for and you lose money.

I think the real risk in this comes from brokers calling in the borrowed stocks and forcing you to cover them while you are upside down on the value. (As opposed to simply holding a stock with no expectation of having to do something with it.)