Friday, May 1, 2009

Fake portfolio update

So I decided to scrap my first fake portfolio, as I realized I was doing two things wrong that skew the results. For one I wasn't factoring in the cost of the trades, as they are going to be about $20 for each complete trade ($10 to buy and then $10 to sell) and I also didn't know about the difference between the bid and ask price, so that was making my gains look bigger than they really would be. So I started a brand new one and this time it's more realistic as to what would happen in the real stock market. After 3 days I'm hovering around the break even point still. I could've been up a lot more if I had hung onto a few of my stocks longer, as some of the ones I had "bought" ended up going up considerably more after I sold them, but I ended up getting out of them way too soon. That's ok, this practice will help me if I ever did decide to get into the market. And on that subject, it's highly doubtful I would ever try to make a living at day trading, it's just far too risky. The only way I could possibly even consider it would be if perhaps I won a small sum of money like $50,000, and then I might consider using $10,000 of it to play the market. But even then it's still kinda risky, and I'm not sure I've got the stones to handle the possible losses! But for now, I'm having fun playing with my fake portfolio :)

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