We've Gone Trading Contests Crazy!

Wednesday, April 05, 2006 | 05:31 AM

Is it just me, or are there an inordinate number of trading contests suddenly going on?

I wonder just what this means in terms of sentiment of the broader markets -- a sudden slew of these contests seems to be hitting all at once.

Here's a quick run down:

If you like 'em fast -- your cars, not your trades -- then the big contest is the CNBC Squawk Box Fantasy Portfolio / Maserati contest.

Cnbc_maserati

The station is promoting this giveaway non stop. They give you a million "Squawk Bucks," and you trade them -- based on closing prices -- up to 7 times a week. You can garner bonus bucks by answering trivia questions.  The winner gets a new Maserati Gran Sport (with the taxes paid by CNBC).

>

If you prefer cute to fast, then consider the Forex MINI Trading Contest:>

Forex

The top currency trader (you have to open a real account) for the Final Round will win a 2006 MINI Cooper Convertible.
>

What if you prefer sexy to cute?

Well, then, have we got a contest for you! The Trading Markets Playboy Stock Picking contest. (Sorry, guys, you have to be a playmate to enter this one).

Playboy

In 2nd place is the lovely Deanna Brooks, whose turn-ons are "being touched on my lower back, good kissers and well planned romantic evenings." Deanna likes Yamana Gold (AUY), because "What girl doesn't like a little bling? I'm hot for gold this year..."  As for turnoffs, she doesn't care for "hairy backs...especially on men!"   (I am not, as Jeff Matthews would say, making this up!)

>

If you find all this diversification a "distraction," then consider the 10th annual My One and Only stock-picking contest.  That's right, one stock, no fooling around. (hey, Diversification is over-rated!). And, if you are in the UK, there is The Independent's Share Challenge (read about it here), and the Trade2Win’s Share Trading Competition. There's also the Real Challenge, and the Dow Jones direction contest.

That's before we get to all the college and high school contests.

>

I honestly do not know what to make of all these contests;  Marketwatch warns us that CNBC is playing a dangerous game, and the contest employs "gimmicks of varying types," including a game show-like sweepstakes where "you can add bonus points to your portfolio by watching Squawk Box on CNBC every morning.

From a broader perspective, I wonder how much all these contests reflect a broader trend towards speculation. We've noted in the past that low quality stocks have been relatively outperforming; that Nasdaq volume has been outpacing the NYSE's; and  that there's been a big spike up in bulletin board stock volume.

Are all these contests just another in a series of warnings that speculation has dramatically risen?

Perhaps. 

As in most "external sentiment" issues -- those not generated from market data -- these are hardly precise in their timing; But they certainly are worth noting as potential warning signs . . .

 

Wednesday, April 05, 2006 | 05:31 AM | Permalink | Comments (18) | TrackBack (1)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00d8345ccf8369e2

Listed below are links to weblogs that reference We've Gone Trading Contests Crazy!:

» No Contest from Bear Mountain Bull
Barry Ritholtz seems to think that with the recent proliferation of stock picking contests, the market coverage is starting to look more like the Game Show Network. And he wonders if it all means something: From a broader perspective, I wonder how muc... [Read More]

Tracked on Apr 5, 2006 2:06:12 PM

Comments

500 mil mkt cap, long only, end of day price assignment,no etf's, hardly a trading contest.

Posted by: rob | Apr 5, 2006 9:23:42 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner