Papertrading

Paper trading is a simulated investing experience where participants trade stocks, ETFs, or other assets using virtual money instead of real cash. It allows individuals to practice and develop their investment strategies in real-time market conditions without risking actual funds. By paper trading, investors can learn how markets work, test different strategies, and gain confidence before moving into real investing.

Paper Trade Challenge: Rules & Instructions

We will go through all of these during club meeting, but feel free to refer to the following rules if you forget.

1. Team Formation

• Teams will consist of 2-4 members.

• Teams will meet once every week to review their portfolio and make decisions.

2. Trading Guidelines

• Each team is given $100,000 in virtual funds at the start of the challenge.

• Each week, we will allow teams to trade more assets and use more advanced strategies. If you miss a meeting, refer to the meetings page for what you are allowed to trade.

• As we invest in more high-risk high-reward stocks, teams in last place should not be demotivated to continue competing, as it is entirely possible (and probable) for last place teams to rise to the podium in a single week.

• All trades must be submitted by the end of the weekly meeting. To ensure that we practice investment and not gambling, teams can only make one trade per week, but can choose to sell at anytime. 

3. Trade Submission

• For each trade, teams must provide the following details:

  • Asset they wish to purchase

  • Quantity (number of shares/units)

  • Price at the time of purchase/sale (we will verify this)

• The trade information will be logged in a centralized spreadsheet managed by the challenge leaders. It is each team’s responsibility to submit accurate information.

• When we introduce more advanced concepts such as derivatives, shorting, and leverages, we will update this page with instructions to submit them.

4. Weekly Meetings

• During the weekly meetings, teams will:

  • Review their portfolio’s performance (profits/losses, current holdings).

  • Discuss market activity that influenced their decision-making.

  • Adjust their strategies based on performance and market analysis.

  • Submit their trade for the week.

5. Team Presentations

• At the end of each weekly meeting, each team will present a brief summary of:

  • What changes they made to their portfolio.

  • Their rationale for making these decisions.

  • Market analysis they used to guide their strategy.

• Weekly Performance: Up to 5 points awarded each week for the team with the highest percentage gain in portfolio value.

  • 1st place: 5 points

  • 2nd place: 3 points

  • 3rd place: 1 point

• Weekly Presentations: Teams present their strategy, changes, and market analysis. Each week, up to 4 points can be awarded based on:

  • Clarity of Explanation: 1 point

  • Market Analysis and Justification: 2 points

  • Creativity and Innovation in Strategy: 1 point

• Teams with 15% or More Weekly Gain

  • Points Awarded: 10 points

  • These teams are performing exceptionally and will be highly rewarded for their strong weekly growth.

•  Teams with 10% to 14.99% Weekly Gain

  • Points Awarded: 8 points

  • Teams achieving a solid double-digit gain but below the top-tier threshold will still be rewarded handsomely.

• Teams with 5% to 9.99% Weekly Gain

  • Points Awarded: 5 points

  • These teams are showing consistent and stable growth.

• Teams with 2% to 4.99% Weekly Gain

  • Points Awarded: 3 points

  • Teams that make moderate but steady gains will earn a decent number of points.

• Teams with Less than 2% Gain

  • Points Awarded: 1 point for participation

  • Even small gains are acknowledged, but minimal points are awarded.

• Teams with a Loss

  • Points Awarded: 0 points

  • No points are awarded for weeks with losses.