Instestment Contest (Huge Returns)

Hey i'm new here and the main reason I joined is because I got into a contest where they give you 100.000 dollars to trade (the biggest exchanges only) and in a month the one who has gotten the most return will win.

Now it has been a week and I'm at 1.5% return which I think is great but looking at the rankings I see this

TRADER11 294%
JHONAL 203%
SILVIAG17 197%
SILLVIA2 187%
GUSNAVIA8 152%
VALENTINA711 137%
JBROWN0910 131%
MOSQUERA 119%
VANCAS 118%
MALBERT 115%

And I'm like WTF are these people doing, I mean what is the possibility for a non professional and even for a professional trader to have these return rates in a week starting with 100k.

Btw the constest is organized by a Latin American entity and its openings closed and you can only trade (Stocks, CFD's, Futures and Forex).

 
Best Response

The best strategy for one of these contests is not necessarily the best strategy in real life trading. If you have no real downside (you don't) then it makes sense to take the riskiest positions you possibly can, especially if you have to beat 100+ other kids. A traditional strategy just won't get you the returns you need beat 100+ people in one month. Also, because it's such a short timeframe, a high variance strategy makes more sense because it's more likely to make you a very high return in the short term.

Think about it this way, if someone gave you 100k to spend in a casino in 2hrs, and you got to keep everything over 200k, then are you gonna sit there and play poker for 2hrs or are you gonna put everything on black and hope for the best?

 

^^ I agree. I'm in a class with a mock platform. It's been more than a week (2months) with a million we've made approx 16% (over 100%) annually. Basically just bought apple and shorted some shit stocks (only equity trading). But there's no way we'd trade like this in life. Idk our risk, but it's probably really high and alot of it has been shots in the dark and riding the liquidity waves.

"History doesn't repeat itself, but it does rhyme."
 

I have to agree here: swing for the fences. Diversifying even a little can kill you. The guy who wins is almost always the guy who gets really luck.

Since you can do CFD and Futures, you can substantially amplify your returns this way. The guys in the lead would get blown up in real life.With a month to invest, you can't say, "hmm, XYZ equity is undervalued by 40%. I will buy it, and wait for its price to appreciate." You might get a 5-6% 1 month return doing that. If you can do that month in, month out, you're killing it.

The guy who wins probably plows all $100 into calls on a crap stock that then massively beats earnings.

 

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