Stock Market Game Round 2 (What can you do with $10,000 in three months)

[racrguy]

Fuck around!

[jyro]

Symbol Order Date & Time Trans Date & Time Type Shares Exec Price
AMRN 1/6/14 3:32p 1/6/14 3:32p Buy 2500 $2.05
PLUG 12/6/13 1:35p 12/6/13 1:35p Buy 696 $2.04
SLCA 12/6/13 1:15p 12/6/13 1:15p Sell 34 $35.40
PLUG 12/6/13 1:01p 12/6/13 1:01p Buy 3250 $2.02
PLUG 12/6/13 11:34a 12/6/13 11:34a Buy 5000 $2.00
CLR 12/5/13 7:52p 12/6/13 9:34a Sell 70 $110.92
SLCA 11/6/13 3:51p 11/6/13 3:51p Buy 34 $34.23
DRQ 11/6/13 3:49p 11/6/13 3:49p Sell 10 $115.86
CLR 11/6/13 3:47p 11/6/13 3:47p Buy 70 $116.47
BLDR 11/6/13 3:45p 11/6/13 3:45p Sell 200 $7.19

[jyro]

honest question, should I stay in or get out today? I know if it was real money, I would be out at 2:59 today with these returns.

[UserX]

honest question, should I stay in or get out today? I know if it was real money, I would be out at 2:59 today with these returns.

I would get out, invest in something stable and you'll win the contest. Nice gains!

[jyro]

that's what I did

I would get out, invest in something stable and you'll win the contest. Nice gains!

vlo and psx

[slow99]

honest question, should I stay in or get out today? I know if it was real money, I would be out at 2:59 today with these returns.

It's imitation equity. Therefore, the sole goal here should be to win the game.

You should liquidate and move to cash. It's HIGHLY unlikely that someone will pass you (barring the obvious and rampant 'gaming' that goes on with these) at this point.

[jyro]

I sold all the plug

It's imitation equity. Therefore, the sole goal here should be to win the game.

You should liquidate and move to cash. It's HIGHLY unlikely that someone will pass you (barring the obvious and rampant 'gaming' that goes on with these) at this point.

I sold at 4.02 bought in at 2.00- 2.05 last Thursday. What I don't understand about other players is, the money is free, no risk, why not go ahead and use all the assets like the $10,000 line of credit. Many didn't use it. I did.

It was still just luck to choose Plug.

[slow99]

I sold at 4.02 bought in at 2.00- 2.05 last Thursday. What I don't understand about other players is, the money is free, no risk, why not go ahead and use all the assets like the $10,000 line of credit. Many didn't use it. I did.

It was still just luck to choose Plug.

I think many are trying to use the game as an actual learning tool instead of just going balls in on something and hoping to win a game.

That line of credit is margin. You have to beat your cost of capital (margin interest rate) on your investment to benefit. If you don't beat your cost of leverage you magnify your losses - instead of losing $5k, you'd lose $10k, etc.

If I had $10,000 in equity and bought $10,000 worth of a stock and that stock went to zero I'd lose my investment and have zero. If I fully margined and went to $20,000 in equity backed by a $10,000 margin loan and that stock goes to zero, I not only have lost my $10,000 - I'd now owe an additional $10k on top of it.

[CWO]

so 'all in' is bad?

[slow99]

so 'all in' is bad?

If you leverage and don't beat your cost of borrowing, yes, it's worse than not using it. If you use leverage and beat your cost of borrowing, then it's good.
The loss example is 2 posts above. The gain example is:

Start with $10,000, buy $10,000 of stock. It doubles - you have $20,000 and made $10,000.

Start with $10,000, leverage and buy $20,000 of stock. The stock doubles - you now have $40,000 worth of stock when you started with $10,000. Pay off the $10,000 loan and you have $30,000 when you started with $10,000 - a 200% return compared to the 100% return without borrowing.

[CWO]

[03mustangdude]

I sold at 4.02 bought in at 2.00- 2.05 last Thursday. What I don't understand about other players is, the money is free, no risk, why not go ahead and use all the assets like the $10,000 line of credit. Many didn't use it. I did.

It was still just luck to choose Plug.

Next game we should see what others are buying early on liking plug but had a bad experience with fuel cell stock

[SVT Lurch]

Many didn't use it. I did.

I used it...to my own detriment. I did learn why you don't go all in at once. I shorted Twitter with all my available cash/credit at $45 and it's pretty much gone straight up from there. Slight drop lately, but I'm not hopeful it will save me before the end of the game (or at all).

Next game we should see what others are buying early on liking plug but had a bad experience with fuel cell stock

That was turned off early on because people just try to copy each other when they can see what they are buying.

[jyro]

I think I lost track of the game goal you set to begin with, " how much can you make with $10,000" in 90 days ", it's a paraphrase. In retrospect, I should have kept playing it like it was.
I used it as a learning tool but what I found was if their is no consequence of loss, you tend to be lots more liberal with your investments. I watch stocks, and have several watch lists , refiners, top funds, and a possible "to buy list" and as the stock moves, I move it up to my "future stocks to buy list". Like I said at the start of the game, I have a lot of time to sit in front of a computer in the winter time. It's helped my IRA.

Thanks for all the reply's to my questions. When it comes to the stock market, I'm still in a fog with most of it.

[jyro]

ttt