Stock Market Investment Competition

Holy shit, ROCKaMIC, you lose so much money on Best Buy and your still in first by a kilometer!

Day two (for me) and I am in Second Place...

From 5th to 2nd place. At that Pace, I'll be first by monday.

Mhou Haa Haa Haa Haa Haa Haa.

Hester and bluenose have no stock so far...

YOu have to select CKA on the Left.
And if its not available, you forgot to join.

"Get Rich with Penny Stocks. Buy penny stocks before they are hyped up,heavily promoted and go up to high prices. Get in on penny stocks before they go up in price. Get the names of penny stocks before they are hyped." Guys, this is the real thing!!!Your time will never be in vain because with pennystocks, we're talking about instant success...Please feel free to browse the link below and try to learn about pennystocks and how will you become ultra rich..

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Copyright 2004, 2005

www.gopennystock.com

So, what are you waiting for?? GO!!! PENNYSTOCKS!!!!

hmmmmmm....

Yes you can all still join. I think but i am not sure that i can move the closing date (if we ever want to play some more

).

Damn i have not checked my stocks today

i'm going to get working on it.

lol i'm only 18

hmmm if i do well at the end of the contest i might consider doing it for real as a hobby lol.

Good luck everyone! you can still join people!

BTW i haven't checked the pennystocks thing but even if it does work which i don't think so, can't we give the guy the link whore medal or something

i lost some money. I'm down to 3.23%

bah... i'll try to keep going

btw Mario, you are 8th right now??

I had to hit Update :oops:

lol i lost some money anyways but i'm only down to +3.43%

woohoo!! i'm #2...soon to be #1!

I'm dying here, I can't log-in, they don't recognize my log-in name, my password, they've either ignored my emails or my email aint working right. Somebody shoot me!
I'm gonna resign as someone else... I don't like it out here in the cold PDT_Armataz_01_19

Margin trading is borrowing money to invest. You use your gains (hopefully) to pay back the loan. "Leverage" is the same. It used be that you could write off the interest, in Canada, making it even more attractive, but not no more.

Here's more:
Margin trading means that you are using borrowed funds to leverage (magnify) your buying power. The brokerage firm lends you money using the securities in your account as collateral. The leverage that margin provides is a double-edged sword; it increases both your gains and potential losses.

Leverage (Magnification) at Work: Let's compare the return from a non-margin account with that from a margin-account.

Company ABC is currently trading at $40 per share. Assume that you have $10,000 to invest and you buy 250 shares. In two weeks, company ABC is at $50. Your total stock value is $12,500; a gain of 25%.

In a margin account, assume that you can borrow a dollar for each dollar that you have in your account (it's usually fifty percent of your portfolio value). Your $10,000 will therefore give you a purchase power of $20,000. Hence, you buy 500 shares and two weeks later, your total stock value is $25,000; a gain of 50% less the interest payable on the borrowed funds. Why 50%? Because you only invested $10,000 of your money and got a return of $5,000. Not bad, right? Wrong! Remember the double-edge sword? Well, the same way the margin helped you double your return, it can also help you double your losses. So watch out.

The main problem in this case is that your broker lends you money based on the current value of the stock you already own. When your stock value starts to fall, so does the amount that you can borrow; and your broker will want some of his money back, or require that you put up some more funds in the account. If you don't have extra funds, your broker will sell some of the stocks you own to cover your position (margin call). This means selling stocks at a loss. Imagine the stock goes back up the next day!

Remember, what you borrow is a function of what you have. When your collateral value falls, so does the amount you could borrow. The lesson? Margin is not a constant function. It is a compounded curve that drops faster and faster as the portfolio drops in value.

The moral of the story is this: if you're absolutely determined to buy on margin, invest with money you can afford to lose, borrow only half of what your broker is willing to lend you, keep a very close eye on your stocks, and get ready to bail at the first sign of trouble, before a margin call capsizes you entirely.

I only understand the basic concepts of selling short, so I stay away from it...

Selling Short
Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. Short selling (or "selling short") is a technique used by investors who try to profit from the falling price of a stock. For example, consider an investor who wants to sell short 100 shares of a company, believing it is overpriced and will fall. The investor's broker will borrow the shares from someone who owns them with the promise that the investor will return them later. The investor immediately sells the borrowed shares at the current market price. If the price of the shares drops, he/she "covers the short position" by buying back the shares, and his/her broker returns them to the lender. The profit is the difference between the price at which the stock was sold and the cost to buy it back, minus commissions and expenses for borrowing the stock. But if the price of the shares increase, the potential losses are unlimited. The company’s shares may go up and up, but at some point the investor has to replace the 100 shares he/she sold. In that case, the losses can mount without limit until the short position is covered. For this reason, short selling is a very risky technique. SEC rules allow investors to sell short only on an uptick or a zero-plus tick, to prevent "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.