Two Concordians win Gazette Stock Market Challenge
The money may have been imaginary, but the stakes weren’t.
Vitaly Fokin, a third-year Concordia finance undergraduate, turned a $100,000 of fictional funds into $174,000 — a sizable profit that secured him the Montreal Gazette’s Stock Market Challenge title.
The victory earns Fokin $10,000 in real money.
Vincent Pivin-Dans, who graduates with a BComm in finance this spring, placed second, turning a 46 per cent profit. The finish nets him $1,000.
So, what’s their secret? “There is no secret,” says Fokin. It’s all about strategy.
Fokin, 26, and Pivin-Dans, 22, found success in the contest by sticking to their game plan and not letting emotions affect their trading.
“What I’ve learned is that you can make money with any approach or strategy on the markets just as long as you stick to your plan, almost religiously,” says Fokin. “There should not be any emotions whatsoever.”
His strategy was based on momentum trading in short five- to 10-minute windows; watch closely for spikes in market prices; get in and get out when the spike levelled out or turned negative. Repeat for the entire competition.
Pivin-Dans used much the same game plan: “Let your gains run, cut your losses short. You have to be as systematic as possible.”
“Don’t be emotional. That’s how you lose money. When you get emotionally attached to a stock, you become biased,” says Pivin-Dans. “When there are big market corrections, you should sell. If you like the stock, you’ll be able to buy it later at a lower price.”
This was the first edition of the Gazette’s real-time fantasy stock market trading game, which was held from March to May. More than 3,700 competitors participated over the 10-week period, competing for $21,000 in prizes.
The win doesn’t come out of the blue for Fokin. His interest in trading began six years ago — a passion that led him to Concordia.
“I wanted to broaden my knowledge. That’s why I picked this program,” he says. “Today, I can say I not only have an interest, I want to make it my career. I think I’ve found a way to actually be consistent in profitability.”
For Pivin-Dans, risk management was one of the most important things he learned during his undergraduate education. “One of my teachers once said, ‘the biggest problem with some traders is they don’t take enough risks.’ Without risk, you can’t make gains.”
Now that the two are flush with real cash, what do they plan to do with it? Stick to the game plan and let it ride, that’s what.
Pivin-Dans has folded his winnings into his real life portfolio. In fact, most of the trades he performed during the competition he did concurrently with his portfolio. “It turned out really, really well,” he says.
Fokin says he won’t quit his current part-time job at a local grocery store. He’s going to use his proven technique and hopefully double his money in a year just in time for his planned graduation.
“My girlfriend asked me if I was going to buy a new car. I said, ‘no, I’m not going to spend it on anything whatsoever.’ I know my plan.”
Related links:
• "Concordia business student wins contest" - The Montreal Gazette, June 4, 2011
• John Molson School of Business