Wednesday, October 5, 2011

OSKIC?

Spend my whole night,searching for trading method used in OSK Investment Challenge(OSKIC). I got no intention to participate in the competition,atleast before I understand the trading method.

The biggest question of stock trading competition is whether the competition involve only speculation rather than trading skill. Starting capital in the competition is 100k as usual,and assume that I had already earn a 100million in one week time,what will happen if I dumb all these 100m into a single stock?Will the stock price shows the real market demand,as well as virtual market demand? Obviously the answer is NO.

Maybe this is a good chance to practice what we had learn in asset pricing and stock valuation,but this is definitely not practical enough as if it does not concern about the demand and supply in the market. A perfect valuation of stock doesnt work here,given you have only 30-50days of trading days,and it ignores your bidding price for the stock.

Some may argue it is not a major issue as long as students have macro-view of overall economy and stock valuation,and that is the purpose of the competition.

For whatever reason it is, this is a good way to know more about stock market. Fair enough to say "know more" instead of knowing.

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