Breaking news: CNBC just announced that the winner of the CNBC Challenge can sleep with their choice of CNBC Anchors. It's called "They're Yours For The Night Bonus." Larry Kudlow will film (as well as direct, to some degree) the whole steamy affair and present the winner with an autographed DVD.
This is great news! Which one which one? Well I guess I'll Take Becky Quick. And I'm sure I'll be quick. BuyLow?
Definitely Becky. Though Erin has been winking at me lately... Mark Haines has a snowball's chance in hell with me.
i can't wait for CNBC to start touting results and the sheep will actually start buying stocks mentioned in those hypothetical portfolios. One should start shorting all major movers in the contest... lol can somone automate that? --RS
what if it wasn't hypothetical? If I got a group together we probably couldn't get $200,000 together but we could duplicate the moves on 1/10 the scale or something. You have me thinking.
The biggest thing to consider is the rule set. The TV people have strange rules imposed for an assortment of reasons. To make money at a very high velocity, You need high beta stocks and good timing. There are two basic choices at hand. 1. to trade position. NTRI 3 days for 30% each lap it takes. 2. to rocket trade. Make 20 % in one day on a breakout. To set up to do this where there is an EOD trade value in effect, you have to, in both cases, trade just before the close of business the day prior to the beginning of 1 or 2. This is not hard to do it turns out. 1. Is cyclic trading with a very tight universe of very high betas stock that meet the "TV people's float rule" designed to kill penny stock trading. Penny stock trading wipes out these contests every time. You have to do the sort to get a float and to have that float "aritficially tied up" so you are assured of high cyle volatility. To be sure you tie up the float (meaning it will not be traded), you add two subsorts: institutional owership and management ownership. The higher the better for both. The price of the stock times the TV float has to be a set minimum. This is not a normally automatic sort. So skip it until you have the other things sorted to assure the float is tied up. Do an additional pre sort to get the list down to size. You will be starting with 8 to 15K stocks and you get it down to 200 by chosing conventional float of 5 to 60M and then use a cut off of 20% for each of the institutional and management ownership. This 200 becomes about 15 a day by looking at the timing. Since we have to buy just before the close the day before the price moves, it comes down to making a list of stocks that is too long. There is also the caveat that they sell stocks BEFORE they buy stocks. This means to get cash for trades that is going to always happen. No problem there. We will always have cash because we can use market orders to sell and we know we get the EOD price. More about that later. Why the too long list? This is to keep money applied to make money. With the 15 opportunities a day (I have done the dry run on this) you need to put them in the best order. Go with rank (%/day normal hold profits), odd harmonics (gives you spiking) and the homerun (( an FTT in a declining IT trend going into an increasing IT trend)(this is the first dom traverse of the new increasing IT, a rocket that is taping)). Be arbitrary about exits. When you have a rocket (type 2), only hold for one day. When you have a 1. type trade, only hold for three days in any case. So you have to run the lists a day ahead of normal money making trading. Type 1's will make about 20% in three days. Type 2's will make about 15% a day. To get the fine detail on 1's use the STOCH 5,2,3 and change the signal for long one day ahead of normal. Normal is coming up and crossing the 50% a day before volume BO which is the day of the trade. So use Stoch instead of volume for the entry day. For rockets there is the non DOM traverse after the FTT that comes before the DOM takes off. SO you can get that down by waiting one day after the FTT to put the rocket on the list. This gives 2 days of non dom before the buy and the homerun takes off. I would use 8 streams of capital and count on 7/8 to roll. Put the rockets at the top and others on the bottom all by rank in that group. All of this will take about 20 minutes a day and its virtue is that none of it is wasted since you can use it in real time one day afterwards during the am breakout period. Most of the time all of the above selections are posted in ET daily as it is now. Apparently the TV trading is brought up to date during the time period after closs (all night long) and then they post the account status by 10am the next day all based on the EOD values. The contest is kind of corny to say the least. But anyone using the above could enjoy being in the contest and doing the trading for real a day later and only trading the better picks with fewer focussed streams. March 5th is when they give out accounts, they say. It seems like before then, this thread could be used, daily, to give the picks all listed in order. The detractors will probably kill that idea by then I'm sure. It might by fun to only trade the 200,000 that you mention and still beat the guys using the full million. LOL.....
Jack does market environment play any roll? Is there a chance everyone bombs with powerful beta stocks during a correction and a highyield & M&A strategy might prevail with a 14% - 20% or so gain? I will certainly be listing my picks on this thread- and to put these paper traders to shame- I'll actually buy the damn stocks question-- it's just a question of how much. ~stoney
No Canadian Traders Allowed :eek: Too bad, I'd love to show you mutts what the great white north is all about !!!!!