So my high school is running a stock market simulation competition and I'm number 1 right now and it really hasnt taken much work. All I've been doing is finding <$10 stocks that have made crazy 90% gains and shorting them when theyre at the peak. I started doing this last week and I went from a -1.3% return to a 6% return in only a couple days.
Is it really this easy? I'm thinking that perhaps I accidentally found some sort of exploit that is only relevant to that website or simulations in general.
Men, you are gold. Drop out and become a traer, you are gonna be rich in less than 6 months.
Please dont forget about me when you are on the top.
>>1544163
I fucking dare you son. Go ahead and lose your life savings and then some.
>OP clearly incredulous at his success, asking if it might be a problem with the simulation
>/biz/ interprets this as "I AM THE BEST TRADER WHO EVER LIVED I'M GONNA MAKE 50% RETURNS EVERY DAY"
>>1544191
this
my first few months at /biz/ have shown me it is worse than /b/
>>1544163
Your strategy is probably not possible in real life because you cannot easily short most penny stocks. There have to be shares available to borrow if you're going to short a stock and most brokers will not have shares to lend for penny stocks.
>>1544163
It's hard to simulate a market because it's so much human emotion. But you've clearly got something going well. Start paper trading with the real market and see how you go.
>>1544163
We did this in HS. My group realized that the stock market in the game lagged like 5 hours behind real life. So we would just see which stocks rose/fell the most at the end of the day and buy/short those.
>>1544224
Thanks for the advice. I suspected it might have something to do with the availability of people willing to actually buy the shorted stocks.
>>1544163
>Is it really this easy?
no
>only relevant to that website or simulations in general.
yes
>>1544241
If you short a lot at the top it can actually accelerate the crash by flooding the market.
If the price goes down enough it will usually trigger stop losses, causing a further drop and triggering more stop losses.
>>1544163
I was numero uno in a program exactly like that in a business class in high school as well.
Pro tip: You might be one of 5 people in your class who actually give a shit.
Just read, read, read, as much as you can, wherever you can. Check out your local library, use kitco and similar sites, find good, truthful sources of news(not MSN or any mickey mouse/government owned news), read them every day, research what you invest in, and always test the water before you dive in.
>Is it really this easy?
No. Or maybe you're a prodigy, and it is. But the answer is no.
I just started playing one these games to get a feel for stock trading. I don't think there's an option for short selling though.
Check my fat profits.
>>1544217
It truly is the worst board. I come here for the lols. The whole board is one big cringe thread
>>1544163
>variance
>small sample size
If you really want to know, put some money into robinhood or thinkorswim and get your feet wet, its the best indicator because it is the real thing.