Tuesday, July 11, 2006

For one of my finance classes, we have to participate in a faux-portfolio contest at StockTrak.com, and invest in a diverse range of securities like options, futures, future options (still getting the hang of how those work), and such like that. We're competing against our classmates, and have to justify every trade we make. If I lose all the money there is no penalty, but if I win, I get satisfaction. This creates a situation where I have an infinite risk tolerance. So far it's working, as I have a return of 7% and am in 2nd place in the class. Mostly on hog future options, and gold and silver futures. Barely even hedged. Who needs hedging when I don't care about risk?

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