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

[1carcrazyguy]

So for those doing small investments ($200-$500 a month). What site are you using? Etrade, TD Ameritrade, Scott?

[jyro]

I use Fidelity, used Scott trade too

So for those doing small investments ($200-$500 a month). What site are you using? Etrade, TD Ameritrade, Scott?

The problem I had with Scott trade was getting the money there to trade with, you can't use a debit card, you either have to pay with cash or check and use the mail or drop it off yourself.

If you decide to go with Fidelity, talk to a agent and see if they will give you some free trades for opening an account. I could get free trades for a referral but it's too much hassle. Scott trade and Fidelity both have good stock and fund analysis pages.

[jyro]

Others here are much more knowledgeable than I about the places to trade

[slow99]

So for those doing small investments ($200-$500 a month). What site are you using? Etrade, TD Ameritrade, Scott?

The problem with making investments that small is that the commissions will eat you alive. If you open a $200 position and it will take you around 10% return to simply cover the commissions on it.

The problem I had with Scott trade was getting the money there to trade with, you can't use a debit card, you either have to pay with cash or check and use the mail or drop it off yourself.

You can do an electronic transfer with Scottrade. I use Fidelity and have never had an issue.

[jyro]

when you short a stock in the game, how long is it for? I wanted to sell 5000 to get even on my credit, I only saw the option to "sell short" so what happens at the end of the game to those shares?

[slow99]

when you short a stock in the game, how long is it for? I wanted to sell 5000 to get even on my credit, I only saw the option to "sell short" so what happens at the end of the game to those shares?

You're short a stock until you buy it back to cover it. I imagine it just marks you to market at the close of the game just like a long.

[jyro]

that will be one of the first mistakes that actually will make me money

fake money anyway. Let me get this straight, I shorted VLO at 53.40 ( thinking I was selling it), today it closed at 51.50 so tomorrow if it drops more, I can buy back to cover and make the difference?

[slow99]

fake money anyway. Let me get this straight, I shorted VLO at 53.40 ( thinking I was selling it), today it closed at 51.50 so tomorrow if it drops more, I can buy back to cover and make the difference?

What you said is the correct way to think about shorting. Shorting means you sell something you don't have in hopes of buying back later at a lower price. A short position is a bet that something goes down in value.

In your case, it sounds like you owned VLO and tried to sell it (close the position) but accidentally shorted instead. In that case you essentially locked in your account at $53.40. Ever since the price was $53.40, you've owned shares long and had shares short (in reality, no position) - the gain on the short (from it going down) is offset by the loss in the long (the shares you already owned). In real life, the clearing firm would flatten this for you on settlement date or cancel/correct the trade to correct it.

[jyro]

except in this case

I had 30,000 in vlo, I was intending to sell off 7000 to cover my margin (credit) but shorted it instead. Anytime during the day can I do a purchase of 7000 of vlo to cover the short? Can I also do a limit buy set at a low to maximize the difference?


Thanks for the help

[slow99]

I had 30,000 in vlo, I was intending to sell off 7000 to cover my margin (credit) but shorted it instead. Anytime during the day can I do a purchase of 7000 of vlo to cover the short? Can I also do a limit buy set at a low to maximize the difference?


Thanks for the help

If you want to do it to simply clean it up, then yes. You need to 'buy to cover' or 'buy to close' or whatever verbiage the game uses for 7000 shares. For actual performance purposes it doesn't matter.

Back in the day it's what people used to do to lock in gains/losses without having to pay taxes. They'd close it out in whatever year they wanted to pay tax. It's called short against the box but the SEC has since gotten wise to it.

[bjtheman1]

So for those doing small investments ($200-$500 a month). What site are you using? Etrade, TD Ameritrade, Scott?

I just got back into things and I use etrade. I like it, easy to use and money transfers are quick.

[snacksnack]

Its almost over and I dont know who this is but he has been busy!

33 Mi Ro $1,920.39 5.32% -$8,079.61 772

[SVT Lurch]

2.5 hours until the game is over.

[2165 Turbo Rail]

I'll take 3rd for my 1 trade. Not too bad

[Mike]

When are we starting another one?