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| jdunn72 |
 Posted: Fri Mar 31, 2006 11:53 am Post subject: |
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Member of The Month
March
Joined: 26 Jan 2006
Posts: 1407
This Month: 0
11098.15 e$
Net worth: 11,098.15
Portfolio Value: 0.00
Monthly Return: 0.00%
Trades this month: 0
Churn Rate: 0.00%Items
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You, know I brought this up before....
But according to the poll most people felt that a portfolio should hold more than one or two stocks...
I think you should just call it a stock pick contest if it's not just for portfolio's.
Portfolio defined:
combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset by an individual or institutional investor. The purpose of a portfolio is to reduce the risk by diversification.
www.pbucc.org/pension/tools/glossary.php
It's still just quite a bit of luck to pick one stock and win but, it takes a lot of skill to diversify and limit risk and still make good gains. 
It is pretty tight on the poll maybe more people can voice there oppinion by voting here
I think a portfolio is a better judge of investment skill than a single pick alone what do all of you think? (if you haven't voted please do) 
Last edited by jdunn72 on Fri Mar 31, 2006 12:04 pm; edited 1 time in total |
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| Benjamin |
| Posted: Fri Mar 31, 2006 12:04 pm Post subject: |
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Administrator
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I didnt peek his portfolio...did he only have one?
I suppose we could make it so you have to have 3 trades to show up in the actives list (Dave would have to back me up on that). Then your active posting and active trading. 
You can start a topic in feedback for what the minimum number of trades for the month should be and then we can start a vote to see if we should add it. |
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| InvestingMac |
| Posted: Fri Mar 31, 2006 12:11 pm Post subject: |
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Investing Manager
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Close contest at the end there. Nice work lostsoul.
Perhaps just include individuals with 3 or more stock holdings? |
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| jdunn72 |
| Posted: Fri Mar 31, 2006 12:11 pm Post subject: |
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Member of The Month
March
Joined: 26 Jan 2006
Posts: 1407
This Month: 0
11098.15 e$
Net worth: 11,098.15
Portfolio Value: 0.00
Monthly Return: 0.00%
Trades this month: 0
Churn Rate: 0.00%Items
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| I don't want to begrudge anyone, it hadn't been decided yet. But the idea that a number of trades placed in the month doesn't seem to fit the solution really. I mean it should be that a person would hold at least 3 securities for the majority of the month. Describing the solution as a number of trades is not really effective. If a person already is holding 3 or more they shouldn't necessarily have to make more trades and a person could quickly get in and out of three trades in one day and then put everything on one stock for the long haul at an all or nothing chance, still not effective. |
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| Benjamin |
| Posted: Fri Mar 31, 2006 12:14 pm Post subject: |
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Administrator
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I see your point, it is a bit more complex.
I'm always open to ideas on making things better...lets discuss this in the feedback forum.
I'm going to Split this. |
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| Dave Rathbun |
| Posted: Fri Mar 31, 2006 12:22 pm Post subject: |
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CFO
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You split too late, I already replied in the other topic.
Short recap: we can add a trading requirement to the active listing.
I'm already on record as opposing any sort of minimum holdings requirement, but I'll state it again here. If someone wants to have only one stock for the duration of the contest that should be their choice. That's just my opinion, of course, and I can code whatever needs to be done. But I really don't see what the issue is. There are mutual funds that hold ten stocks. There are mutual funds that hold 1000 stocks. You don't base your decision to buy that fund on how many stocks they hold, but how well they perform. |
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| frusnak |
| Posted: Fri Mar 31, 2006 12:23 pm Post subject: |
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CFO
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So are we going to have to have 3 trades per month and 10 posts or just have 3 stocks or was it 5 stocks. What are we voting on exactly?
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| jdunn72 |
| Posted: Fri Mar 31, 2006 12:27 pm Post subject: |
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Member of The Month
March
Joined: 26 Jan 2006
Posts: 1407
This Month: 0
11098.15 e$
Net worth: 11,098.15
Portfolio Value: 0.00
Monthly Return: 0.00%
Trades this month: 0
Churn Rate: 0.00%Items
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| I may be comming off as a griper (I hope not because, I didn't even come close to winning) good job lostsoul but, I just think that it is definitely less of a proving experience for ones stockmarket prowess if, you are more interested in winning the cash than learning truly how to develop good trading habits and a hail mary on one stock each month probably isn't a good strategy and it doesn't put einvesting into a beacon on the hill position of learning about trading and promoting good trading skills as most of the site does. |
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| jdunn72 |
| Posted: Fri Mar 31, 2006 12:32 pm Post subject: |
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Member of The Month
March
Joined: 26 Jan 2006
Posts: 1407
This Month: 0
11098.15 e$
Net worth: 11,098.15
Portfolio Value: 0.00
Monthly Return: 0.00%
Trades this month: 0
Churn Rate: 0.00%Items
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| Dave Rathbun wrote: | You split too late, I already replied in the other topic.
Short recap: we can add a trading requirement to the active listing.
I'm already on record as opposing any sort of minimum holdings requirement, but I'll state it again here. If someone wants to have only one stock for the duration of the contest that should be their choice. That's just my opinion, of course, and I can code whatever needs to be done. But I really don't see what the issue is. There are mutual funds that hold ten stocks. There are mutual funds that hold 1000 stocks. You don't base your decision to buy that fund on how many stocks they hold, but how well they perform. |
No-one in their right mind would ever consider putting their money in a mutual fund (which it wouldn't be) if they only held one security, no matter how well it performed in a period.
All you have to do to make the competition fair is change it's name to stock pick competition and do nothing about the scripting and leave the portfolios out of it. 
Last edited by jdunn72 on Fri Mar 31, 2006 12:35 pm; edited 1 time in total |
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| InvestingMac |
| Posted: Fri Mar 31, 2006 12:32 pm Post subject: |
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Investing Manager
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I generally support the idea of having a minimum amount of trades or holding on to a minimum amount of stock. This would reduce the amount of "luck" in the competition and encourage people to remain more active in their portfolio building.
I personally would like to see an added competition that focuses on consistency in performance. Aside from the monthly winners, I would like to see a "quarterly" winner for the strongest three month performance. I don't want to add financial burden to the site, but I would like to see some added incentive for those who perform consistently or perhaps elect a longer term strategy that isn't shown in one month.
On top of that, a yearly competition or six month competition (but only when finances allow).
Now I respect the winners for selecting a single large gaining stock (if that is the case), but I think the competition should encourage learning to work with stocks, not learning to luck with stocks if you understand what I mean.
Just my perspective. |
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| Dave Rathbun |
| Posted: Fri Mar 31, 2006 12:40 pm Post subject: |
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CFO
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I don't see what is "unfair" about holding a single stock. In January I held one stock, and finished second. In February I held two stocks briefly, one stock for the entire month, and finished probably near dead last. This month I held my only stock left from February and finished second. You don't have to be a trader to have good returns.
I'll make this my last comment on the subject, because I don't want to stir up any more trouble than it looks like I already am. I've made my opinion known, and do please understand that's all it is, is my opinion.
As I suggested once before, when I get the time to fix the return calculation (and I intend to spend a good bit of time on it this weekend, as this is an excellent opportunity since the end of a month occurs over a weekend) then you will find that the active traders could quite possibly outshine the buy-and-holders on this site. At that point, it doesn't matter if you buy and sell the same stock 100 times in a month, if you make 1% each time you will have made 100% by the end of the month. You won't find many single stocks that run up 100% in one month. At that time the buy-and-hold people will be screaming that the active traders are taking over the game. |
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| Benjamin |
| Posted: Fri Mar 31, 2006 12:44 pm Post subject: |
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Administrator
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I gave lostsoul a bonus because I'm doing this...here is his winning portfolio.
Stock Shares Purchase Price Current Price Change Value Cost Net Return Trade
ASTM 2,421 2.07 2.03 +0.03 4,914.63 5,021.47 -106.84 -2.13% Sell
TSYS 2,470 2.02 2.56 +0.03 6,323.20 4,999.40 1,323.80 26.48% Sell |
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| jdunn72 |
| Posted: Fri Mar 31, 2006 12:46 pm Post subject: |
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Member of The Month
March
Joined: 26 Jan 2006
Posts: 1407
This Month: 0
11098.15 e$
Net worth: 11,098.15
Portfolio Value: 0.00
Monthly Return: 0.00%
Trades this month: 0
Churn Rate: 0.00%Items
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| Well, just in case it's a hardware resources issue, then none of the things we want will work here (by listening to Dave I assume you are on a shared or virtual server therfore limited processor capabilities are available for you)..... like, limit trades and stop losses etc., Ben, maybe you should consider getting a dedicated server, I took the liberty to source one for you with competetive pricing, I am in no way affiliated or associated with them but here they areCheapest Dedicated Servers by ServerPronto - $29.95 per month. |
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| frusnak |
| Posted: Fri Mar 31, 2006 12:46 pm Post subject: |
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CFO
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As long as we get the trading cost in line that will be great. Then everyone will have a chance to win....  |
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| Benjamin |
| Posted: Fri Mar 31, 2006 12:50 pm Post subject: |
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Administrator
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It's definetly not a server issue.
It comes down to participation.
Dave has a good point regarding actives vs holders. If you want to play it as a single pick or a portfolio I think your still in the same game. Picking a single stock has as much chance of being down 50% than up 50%. It may be luck, but thats investing. |
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