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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (6873)	1/6/2009 10:05:51 AM
From: Sr K	Read Replies (1) \| Respond to of 20435

The $5 minimum for shorting was there for good reason. The Game has a few purposes. To bring to people's attention stocks they may never have followed or even heard of. And, to learn how to place clear orders. I don't want people to short easy pickin's, such as GM, for instance, which in the real world you can't even get shares to short. There are many times a bankrupt company's stock is still trading, even on the NYSE, and about to go to $0, before new stock is issued to creditors. It happened with DAL and NWA and many others. Letting people short from $3.00 to $0 is the same mathematically as $.60 to $0. It wouldn't contribute to the game. I like the 50% maximum for any one position, but I would lift the limit of only 1 short and let players have up to 5 positions long or short or cash. The mathematics of accounting for long or short positions is only partially in the Rules, in Rule 4 for the short side. But the long side should be stated also so players understand the logic. Long positions are valued as PP+(-PP+DP). Shorts are valued as PP+(PP-DP). PP=Position (Purchase or Short) Price, DP=Price of the Day.