Similarly to real world, your goal is to buy low and sell high. Unlike real world markets that have volatility due to other people making up "Trader Sentiment", the game utilizes a system to emulate ups and downs in the market.
Whereas having merits in Interest Rate for bank deposits and a lengthy deposit period can provide high interest rates for passive returns, it ties up your money and while safe can potentially offer less returns than wise consistent investing. Now, this is my opinion, as I cannot provide any historical evidence, so I cannot claim it to be true at this time.
What I suggest for market trading is to have your time period set to 24 hours, which gives you an average total of what the stock was exactly 24 hours ago. Hourly volatility could see this having been higher or lower over that period, but I wouldn't suggest spending that much time monitoring a video game stock market. You look at the biggest losers and divide your investment across several positions. Depending on how much you have to work with, I'd suggest picking 5 positions.
Every day you can shuffle this positions and garner a varying return. If you have 4 winners and a loser you can double down and reinvest into your lower to raise your average share cost and decrease the time needed to return to your break even (You need 0.10% higher to exit at net neutral.)
Results will vary, but you could get several percentages of profit daily if your very active. However, the way that thos becomes potentially higher returns than locking your money up is to reinvest your gains to compound your profits. You have simple returns and compounded returns. Simple is pocketing your profit and reinvesting your initial capital whereas compounded returns are constant reinvestment that in turn have their own respective return of their own.
It's not a 100% safe method of making money but depending on what your returns are in your interest baring bank deposits, this method provides liquidity and with consistency, a higher return. Imagine getting a net 1% profit per day. If you take a simple return, that's 7% per week. If you reinvest and get compounded returns, that will be 7.21% return. These numbers grow more extreme as you continue over time, remaining consistent.
I am only a day 2 account, so I'll understand skepticism and cynicalism. If there's older seasoned players that want to chime in to add to the topic, please feel free to agree or disagree and expand on what I've mentioned if you choose.
Whereas having merits in Interest Rate for bank deposits and a lengthy deposit period can provide high interest rates for passive returns, it ties up your money and while safe can potentially offer less returns than wise consistent investing. Now, this is my opinion, as I cannot provide any historical evidence, so I cannot claim it to be true at this time.
What I suggest for market trading is to have your time period set to 24 hours, which gives you an average total of what the stock was exactly 24 hours ago. Hourly volatility could see this having been higher or lower over that period, but I wouldn't suggest spending that much time monitoring a video game stock market. You look at the biggest losers and divide your investment across several positions. Depending on how much you have to work with, I'd suggest picking 5 positions.
Every day you can shuffle this positions and garner a varying return. If you have 4 winners and a loser you can double down and reinvest into your lower to raise your average share cost and decrease the time needed to return to your break even (You need 0.10% higher to exit at net neutral.)
Results will vary, but you could get several percentages of profit daily if your very active. However, the way that thos becomes potentially higher returns than locking your money up is to reinvest your gains to compound your profits. You have simple returns and compounded returns. Simple is pocketing your profit and reinvesting your initial capital whereas compounded returns are constant reinvestment that in turn have their own respective return of their own.
It's not a 100% safe method of making money but depending on what your returns are in your interest baring bank deposits, this method provides liquidity and with consistency, a higher return. Imagine getting a net 1% profit per day. If you take a simple return, that's 7% per week. If you reinvest and get compounded returns, that will be 7.21% return. These numbers grow more extreme as you continue over time, remaining consistent.
I am only a day 2 account, so I'll understand skepticism and cynicalism. If there's older seasoned players that want to chime in to add to the topic, please feel free to agree or disagree and expand on what I've mentioned if you choose.
![[image: i.imgur.com]](https://i.imgur.com/3r1ueZh.png){kind=link}