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Full-Time MBA Student Dominates Stock Trading Contest

April 15, 2008
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 Stock Trading Contest Winner
Tom Ryan was the first place winner in the Equitrader contest.
Second-year MBA finance student Tom Ryan outplayed fellow MBA students to win first place and $500 in a stock trading contest sponsored this spring by the MBA Finance and Investment Banking Club. Ryan finished the eight-week-long competition ahead of the pack with a 19% portfolio return. Second place was taken by Tyler Gables who brought in a 4.65% return.

The stock trading competition, which was set up through the Equitrader online arena for stock trading, was open to all MBA students, and winners were chosen based on percentage portfolio return. About 25 actively trading students participated. Each student was given a phantom million dollar portfolio to trade within the given parameters which included minimum and maximum prices, ability to use margin, volume limits and diversification thresholds. The hopes to hold the contest again in the fall with even more student participation.

Ryan used a short selling strategy based on an overvalued market with large macroeconomic problems. He looked at rising food and fuel prices coupled with the struggling housing market expecting a reduction in disposable income to affect the market. According to Ryan, his biggest challenges were the short time frame of the competition and the volatility associated with the market right now. The contest was more practice than learning for Ryan who, although a seasoned trader, gained insight from his courses at UM.

“This school offers tremendous information; I’ve learned a tremendous amount here,” he said of his time at the business school.

Ryan will receive a $500 prize for his efforts and Gables will receive $200. Ryan, who plans to begin his own hedge fund this spring, is looking for more investors to add to the $3.5 million he already has invested.

Equitrader (www.equitrader.com) runs simulated securities trading competitions supporting stocks listed on NYSE, AMEX & NASDAQ. For each competition, contestants start with a theoretical cash pool ranging from $10,000 to $1,000,000. Securities are bought and sold for the duration of the contest. The competitions can also vary in duration as we hold weekly, monthly and quarterly contests with different prize totals for each.
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