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FreeMarkets (97.61)

CAPS - Fake Money

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January 08, 2009 – Comments (7)

Instead of users simply picking stocks UP or DOWN, it would be nice to see people allocating a fake  $50,000 investment.  This would keep people from just constantly picking stocks thinking, if one goes down, I'll just get lucky on the next one.

The winners today - could have been BROKE two months into the game?  For example, if you put 100% in SAY a week ago, under the current system, just start picking more stocks to make up for the 100 point loss.  If you allocated 100% of your investment into SAY, you'd be done (as would happen in REAL life).

I'd very much like CAPS to be modified with fake money and then users choose to allocate the percentage of funds they wish to use for each pick.

7 Comments – Post Your Own

#1) On January 08, 2009 at 10:22 AM, outoffocus (23.59) wrote:

That model is already overdone.  There are like 50 sites out there that provide this service, both for free and for fee.  If you want to try your hands at that then try investopedia.com or marketwatch.com.  They both have free simulators. The most popular is stocktrak.com but they charge a fee.  CAPS is unique because it merely tells you whether or not you beat the market, regardless of how much you invest.  Personally I think that is a more valuable service.  I think I've learned more from this game than from any simulator.

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#2) On January 08, 2009 at 10:26 AM, Imperial1964 (97.93) wrote:

If you want a portfolio simulation game, there are some out there.  For the last couple years a few friends of mine have been using online portfolio tracking tools to compete against each other.

I think you're missing the point of CAPS.  The main point of CAPS is the database of our picks.  It's a stock research tool, recording the opinion of tens of thousands of people.

I actually like the way it tracks my picks against a benchmark so I can test dozens of ideas and see how well they have worked out.

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#3) On January 08, 2009 at 10:59 AM, skeptic86 (95.52) wrote:

o sh!t.. you mean there is real money out there!? and scottrade.com isnt fake money!?

haha.. j.k.

 i agree with Imperial1964. i do think accuracy needs to be weighted heavier tho.

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#4) On January 08, 2009 at 11:02 AM, blake303 (29.54) wrote:

I like www.UpDown.com for that type of simulation. Despite a few bugs CAPS is fine the way it is. 

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#5) On January 08, 2009 at 11:07 AM, skeptic86 (95.52) wrote:

you know what i think too... how do you guys have like 100+ picks.. did you guys really do research on 100+ companies!? i think there should be a limit in how many ratings you can have at a time. i mean.. unless this is your fulltime job. i dont see how anyone could give me an accurate assessment of 100+ companies.

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#6) On January 08, 2009 at 11:26 AM, blake303 (29.54) wrote:

There is a limit of 200 picks. If you don't need that many picks, don't use them. You can pick an entire sector or multiple sectors to under or overperform, which gets you to the limit quickly. Or if you look at one stock per day you will reach the limit in a little over six months.

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#7) On January 08, 2009 at 2:10 PM, TMFCHarris (99.60) wrote:

FreeMarkets,

One of the reasons I personally like the CAPS model more than the portfolio model is summed up in this article by Bill Barker. Basically, any time you use simulated cash, the biggest winners are the players who maximize their leverage on the riskiest (and thus highest paying) bets. Not only does this not provide a real guage of skill, it produces flawed intelligence - neither of which we want in CAPS.

Fool on,
Chris

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