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Shorting is a high-risk/high-reward strategy: With CAPS there's no required time frame to cover a short, so I can hold irrationally high performers indefinitely, until they come back to earth. On a related note...

 

Overvalued growth stocks are dangerous to short: Most of my worst picks in CAPS to date have been long term underperform calls, mostly in alternative energy. I've also lost points on stocks like GOOG, that are overvalued but have a strong bandwagon effect. They won't fall until the irrational market sees tangible evidence that the best case growth scenario isn't coming. Or maybe...

 

I'm just better at going Long than Short: I seem to be much better at picking winners than losers. This is a useful skill to have in real life investing.

 

Low price stocks are volatile, so is Oil: Both of these observations probably deserve a "well duh!" response. If I were a trader I think there would be money to be made in said volatility. With Oil you really need to ignore short term fluctuations when you buy and hold.

 

Without trading fees, the market is "beatable": My CAPS score is evidence of that. But with trading fees, it's much harder. In my real profile I've been hamstrung in my flexibility thanks to modest positions and the relative cost of trading. I really should open a Zecco account to play with.

 

 

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