(Sandusky, Ohio) Crash and burn.
I saw the BP’s participation certificate tucked somewhere on my table and decided to recount the event that occurred few weeks ago. BP came to campus and provide a trading simulation exercise on crude oil. It was supposed to be a competition among all the participants doing thee simulation. I teamed up with Has for this challenge. I had some prior experience doing some virtual trading and analysis before so it should be in my favor to be ahead of others. Indeed, as soon as the simulation started, we start out small by longing and shorting to fell the market around. Has and I are rather passive players. We will hold a position and wait until we earned a profit. With 10 minutes left in the game, we locked in around $12 million in pure profits. But hold strategy was no longer working for us in the final moments, we ended up reducing our profit by $3 million, but I was adamant to recoup those losses till I forgot about the time clause. The time runs out as I was trying to close my account. Still, I had $9 million in the bank, so it should be okay right, wrong! Because I didn’t managed to close the account before time ended, we were penalized $43 million from our holdings. To make matter worse, earning $9 million would still make us ahead of the market by a large margin because the runner-up (who won the game because of our penalty) only earned $2 million, while the rest of the participants all lose money or are just barely scraping through. I should have not gave up on the forest just for an additional tree, a key lesson that I should not be myopic in chasing small profits and forgot about the things around me. Rubbing salt into injury, Z came and congratulate me, “Hey, at least you know you’re the best trader here.”
FYI, my virtual portfolio last year earned more then 100% return. It’s just that I do not have the guts to put in real money to play, unlike A and H.