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Looking through other top players' profiles, I noticed how many of them have totally exploited the current set up of CAPS. Find a stock that is on its way down (easier said than done) and instead of just riding it all the way down to zero, get in and out of the stock banking points along the way. Here is a simple example:

 

Stock A - current price $10.00

If I pick this stock to underperform today and ride it down to zero, it would have gone down 100% and I would get 100 points (assuming the S&P did nothing).

 

How the big boys are doing it:

 

Choose Stock A to underperform today and ride it down to $5.00 - then bank there. It went down 50% and so I get 50 points and an accurate pick. Now I get back in at $5.00 and ride it down to $2.50 so I get another 50 points and an accurate pick. Now I get in it again and ride it down to zero, which is a 100% loss, netting another 100 points and an accurate pick. So with this scenario I have gotten 200 points and 3 accurate picks from finding 1 stock that is going down. Nice. And I've seen the big boys get in and out of stock 7+ times. It significantly lowers the faith I have in this CAPS system overall, but it does show that there is a lot of strategy involved in this that has nothing to do with stock picking, and I like strategy games. :)

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