A perspective on PERFORMANCE
For a number of us "negative" players on CAPS, we have been scoring by shorting a variety of symbols. Since CAPs is a relative game, it underscores short performance compared to real life.
Let me explain....if you are short a stock and it drops 50%, and the market drops 40%, in CAPs you score only 10 points(by beating the S&P by 10%) but in real life you make 50% on the equivalent play. Trust me...I know from my personal real life portfolio.
The inverse analysis can be made in a bull market when you are green thumbing shares.
The irony is few really appreciate how increadibly difficult it is to score points shorting stocks in a bear market in CAPs.....it is much more difficult than in real life.
So kudos to all those players that had positive returns last year red thumbing stocks in CAPs, your accomplishment was quite remarkable. And if you applied your approach in real life, I am sure a number of you are enjoying a fine drink reflecting on the amazing year you had last year.
Think about this one for a second:
If you green thumbed a stock and it DECLINED 30%, but the market DECLINED 40%, you would score the same ten points as if you red thumbed as stock and it DECLINED 50%. In the former, you would have lost 30% in real life, in the latter you would have made 50%.
Now tell me this, who was the better player since both scored 10 points on CAPS, the one who make 50% in real life or the one who lost 30%?
Remember, Alstrynomics is all about character and competence.....especially in real life.