MarketWatch Investing Game anyone?

SVreX wrote:

nervousdog wrote: I bought a stock that was set to split 5:1. I will probably dump it quick since most of the growth can be attributed to the artificially low price that was created by the split.

Tell me a little more about this. Did you buy before the split or after? Or doesn't it matter? Are you saying the price was artificially driven down before the split, you bought, and are allowing it to adjust a bit before dumping?

I bought before the split. It can work both ways.

Let's say a stock normally trades at $60 and you own 100 shares. The company decides to split their stock 3 to 1. You now have 300 shares at $20. The lower price appeals to investors who couldn't or wouldn't buy at $60. They buy at $20, putting upward pressure on the price, because they feel the stock will eventually get back near where it was.

Companies usually split if their stock price has stagnated or they want to create some perceived value. Back in the days of the crazy tech boom I saw stocks hit the market at $20, climb like crazy to over $100, split 4 to 1, and climb back to $100 in a month. A $1000 investment at the beginning would be worth $20,000 in just a few months.

In reply to nervousdog:

Yeah, I understand what a split is (and you did a good job explaining it).

I was more interested in the timing that netted you $20k in a day.

I've bought stocks in the real world looking for the split, but never paid enough attention to know the details of the short term impact. I'm in it for the long haul.

Like you, I am not interested in trying to time the market (in the real world). But the game is a little different.

Bobzilla wrote: I'm riding this out long term not worrying as much about the daily gains and losses.

Right there with you. I made 36 trades among 10 stocks last year & finished 5th. Even though its "only" a year, this is still a marathon not a sprint. You drive yourself nuts chasing daily gains. A company's strategy doesn't change every day; neither does mine

Oh, well I got in as soon as the game started. Other investors getting in right before the close pushed the price up which accounted for my gains. After the split, the stock dropped a little when people took the gains and ran. That wiped out most of what I had made the previous day.

This is odd, everyone's returns for today are at 0%

GameboyRMH wrote: This is odd, everyone's returns for today are at 0%

The market isn't open...

Oh, makes sense I guess, first time I'd seen them all at zero.

hasnt opened

Opened now, a lot of people are doing much better today.

I'm down the ranks but up in cash. Only three of my stocks are doing badly, and two are doing badly because they're doing well. But I think those will be my aces in the hole later.

Hardy is kinda leaving us all behind...

That being said, it looks as though he's got everything in and then some. I played a bit too wild earlier on and now I'm starting to see some trends.

My biggest worry is when to cash out. I like my moves, but none of them are long term. I'm basically playing the final scene of Point Break, playing chicken with the rip cord.

Wish they had an app so I could do this from my phone. I'm not near a computer much while the market is open. Can't even check out the standings from my phone.

Load all your transactions into Google Portfolio, watch from phone.

Can't trade or anything, but you can watch your money burn!

Hoping the afternoon balloons like it did yesterday. Could have a good day still.

Whew...just made $46k in a few minutes. Didn't trust it enough to hold it very long.

EDIT: made the mistake of buying back in as it was still climbing. PS: dont do that.

Our current 2nd place person is a young teenager.

More trades = more better, right?

I wish it updated the rankings more often. I went from 2nd, to likely first, down to 20th, and now, provided ya'll didn't go nuts on some big gains, should be back up in 2nd, but I won't know for another 10 minutes.

EDIT: updated

In reply to PHeller:

Worse, I can't get my portfolio page to update and equal the rankings page.

One moves significantly slower than the other.

They equal out after hours, but not until like 8:00 Eastern.

Well so far I learned that a bubble which I thought had plateaued is, alarmingly, not even done growing yet. I think I might have strapped on a pair (or more) of expensive cement shoes which I'll have to throw away. If I keep them on long enough, they could become rocket shoes...but that's a big gamble.

I'm still in the hole, but slowly coming out.

I'd found that the way to guarantee a stock will tank is for me to buy some.

Swank Force One wrote: I'd found that the way to guarantee a stock will tank is for me to buy some.

Let me know your plans so I can short it. I'll give you a cut.

Oh wait, that's how insider trading works, isn't it?

Edit: Yep! Yay, I'm learning how the market works!

Still not quite sure how the short works.

Lets say I buy 4 shares of stock valued at $25 each for a total of $100. This is the highest 52w price for this stock, so I expect it to fall back down to its average of around $18.

If I sell at $18, will I make $21 for a total of $121?

Depends on how you look at it...technically, you made $100 selling the stocks (costing you nothing) and paid $72 to fulfill the order.

Basically your profit is (price drop*number of stocks)-transaction fees.

In reply to PHeller:

When you short a stock your profit is the difference between the high price and the low price, so you would make $7 per share in your example.

Edit: spelling