Share Game Suggestion

[ale]

:idea: :idea: :idea: :idea: :idea: :idea: :idea: :idea:
Comments/ thoughts on this please.

It is obvious that many share competition competitors make trades on penny shares. By their very nature these are highly speculative and unlikely to be traded for real.
How about having a limit to the shares that could be traded eg only FTSE 350 companies?
That would take out much of the volatility and luck elements and put the game more into the real world.

Please vote for or against. If enough people agree then Sharky may elect to try it out.

Ale

 

[Volatile]

I'd vote FOR definitely

 

[Minder]

I vote against the proposed change. If the purpose of the competition is to reflect the facilities of any UK trading account, then the products available to trade should mirror those on the LSE.

How about a comments box attached to each trade. The player may like to add reasons for their decisions to buy or sell a stock. It could be helpful in determining if there is an element of luck in the trades, or some logic.

I would like clarification on the point I made in the Share Competition thread. Are derivatives allowed in the competition ? Warrants, covered warrants, splits, zeros etc. I used some dow warrants, my trades were accepted, but the prices have remained frozen and do not reflect the live market prices.

 

[Sharky]

We've had very few votes for this suggestion. Would any of the regular share competition contestants care to share their opinion on whether or not to restrict the shares that can be traded.

 

[User]

Originally I thought this suggestion was a bad idea but I now understand the point which is being made.....

This would try to eleminate the luck element in some contestants trading....

So yes maybe you could limit it to FTSE350 companies......

But on the other hand I have tried to trade companies such as Falkland Oil and Gas. A quality company which I would not be able to trade if a cap was made on the companies eligible for trading in the competition.

We could keep it to FTSE350 for a few months and see what happens I suppose?

 

[User]

How about a comments box attached to each trade. The player may like to add reasons for their decisions to buy or sell a stock. It could be helpful in determining if there is an element of luck in the trades, or some logic.

I see what your trying to say, but simply, 'I'm Buying stock X because I believe stock X will rise'

It wouldn't really help in finding out who are the gamblers and who are the real investors.......or traders......

 

[ale]

FTSE 350 was just a starting point for discussion.
I would favour limiting it to shares with a minimum SP.
To give it some reasoning, perhaps the level at which large institutions are able to buy - I believe this is around 75p.
So, perhaps try it for a month or two?

 

[Anonymous]

If you are going to restrict it you might as well restrict it to the FTSE 100.

Incidentally, the real world is about volatile and non-volatile stocks. Choosing a non-volatile stock only keeps one's money locked-up in that particular stock, losing interest on the fund which could be invested elsewhere or incur share financing costs. You are either right or wrong about the stock you pick. Marks and Spencers the retailer needs to sell stocks that sell fast, and not tie up its company's cash flow.

 

[Anonymous]

There should be a restriction on the monthly competition such as: each contestant must not put all his money in any one particular company's share, ie. he mustn't use all his 50000 to long or short any one company's shares.

If a contestant puts all his money on only one company's shares in each month, out of 12 months he is likely to get one right even if during the other 11 months he got all losses. That will be not be a reflection of stock picking ability but contest smarts.

Another way to measure if a trader does possess stock picking ability may be to see his monthly performance for 12 consecutive months.