Options
PM Picking Contest - potential rules / guidelines?
Wingsrule
Posts: 3,049 ✭✭✭✭
I’m actually thinking about how to do this. What type of rules should be considered IF it were to happen?
.Trades would be at spot bid/ask when posted (while markets are open Monday-Friday)
.Need to post to a specific thread with your intent
.Indexes or metals would be bought/sold at the next session’s opening price to avoid shenanigans
.No naked selling
What other things would need to be considered?
0
Comments
Long SLV since mid May, put on record today if u musk. Still long. RGDS!
To make it simple and transparent, I’d suggest that all trades be assumed to occur at spot, and that we simply say that we are holding physical metal, but we are ignoring transaction and storage costs. We could start the year with something like 100k in cash and precious metals split in integer percentages between cash, gold, and silver, (eg, I might start with 33/34/33). We could trade with some limits (such as no more than once per week) With my starting allocation of 33/34/33 on Jan 1, I might ask on Jan 21 to shift to 0/75/25 and this would be executed at the opening value on the first trading day after Jan 21. We could also add platinum, but if we add too many asset classes it will be complicated quickly. Since the goal is to evaluate our prowess at market timing, it should be fine to have a limited number of asset classes and to assume trades at spot.
I think it would need to be more realistic to J6P's buying patterns. He isnt buying at spot, he's buying ASE's at $5 over. Anyone buying physical should state actual costs.
For example, folk who bought ASE 2 years ago are still underwater (some bigly) even though spot has increased $8. Whereas the dude that bought the paper version IS actually up almost $8. To equate the two would be deceptive.
Knowledge is the enemy of fear
.
I knew it would happen.