Ultimate Investing Challenge

[lehayes]

I would like to see a stock competition that will present what I think is the Ultimate Investing Challenge. That is to start investing with as small a monetary value as possible. I would not want to shred people with investing with say $20 or $40, but starting out with about $500 to $1000 would be a real challenge. It would also help people to see how they could actually start with possible income that they have to work with based on their own budgeting.

Anyone can throw money into the market and generate some profits on $100,000 like we have in the competitions, but how about when they have to start small?

[Dee-eight]

Joe Sixpack reporting for duty, sir! If and when I start real dollar trading, I'm looking at beginning with risk capital in the 1 to 2 thousand dollar range. I sometimes look at Scottrade's $500 minimum and dream big dreams, but then I look at my current sim competitions and come back down to earth.

Some practice in a sim with that kind of starting capital might be just the thing to test my knowledge (or lack thereof).

[spncr2]

I like the idea lehayes,

If we could slim down the initial start off amount to (like you mentioned) $500-$1000 would really give newcomers the "real feel" of what starting off would be like. I would also make to point to try and make transaction fees about $7-$9 per trade. Talk to you all soon.

-Spence

[gijoe9]

I can set up a 1k game at investopedia if you like. If think we should remove the diversification rules and such I don't know if I can lower the minimum share price but that will be something I can check out. Post if you like or I will join a game you create Larry.
Joe

[FirstConsul]

IMO, it would be better for a real newbie that wanted to get serious in investing to either save up lots of money(if he were an adult and employed) or he would get a part-time job and accumulate capital. Face it, we're not Richard Dennis(or some guy like that) who turned $400 in hundreds of millions...

[lehayes]

Originally Posted by gijoe9

I can set up a 1k game at investopedia if you like. If think we should remove the diversification rules and such I don't know if I can lower the minimum share price but that will be something I can check out. Post if you like or I will join a game you create Larry.
Joe

Sounds good Joe, go for it. Don't worry about the min share price. It works fine in the current one. Leave the diversification if you guys feel it would do some good. I don't care for it, but it would simulate the 3 day +1 to some degree. I just don't know how I am going to find the time to do 2 competitions and a real trade, plus work at my job.

[lehayes]

Originally Posted by FirstConsul

IMO, it would be better for a real newbie that wanted to get serious in investing to either save up lots of money(if he were an adult and employed) or he would get a part-time job and accumulate capital. Face it, we're not Richard Dennis(or some guy like that) who turned $400 in hundreds of millions...

AAaaahhhh, but you can be... just based on your statement here alone, we have the proof that there is a good need for some education here.

I have started my account over many times simply using small amounts like $600 or even as small as $40 per pay day. You can bet that during those times, I was very desperate to get my investing started.

At about $600, you could get a fair start and really make it grow.

All you have to do is to invest into a stock in a swing trade when the stock is low and sell when the stock is high. If you like to short, then you could short, but I think you have to be at $2000 to do margin for that purpose. So you might start with just a bull swing trade until you get to $2000, then start using shorts, margin, and options if you want. Tough, but it can be done.

[gijoe9]

It is done. it is called the Falkin Ultimate Investing Challenge. (join game) That link should take you there. If it does not work ley me know and I will fix it up. I disabled the daily volume limits and also the diversification rule.
Joe