Carey Finance Student Makes Top 10 in WSJ Trading Competition

Carey Business School MS in Finance student Xin Ge achieved a high ranking in the recent Wall Street Journal Student Index University Trading Competition. Of the more than 7,500 players who each used a virtual budget of $100,000 to build and trade a portfolio of securities between April 2 and April 30, 2014, Ge finished eighth.

Ge chalks up his success to strategy and discipline. He also followed two key rules that helped him manage more than 1,500 orders in one month. “The first rule of trading is to limit loss,” he says. “Admit you are wrong when you are in a loss, and close the position when the loss reaches your limit. The second rule is not to be too greedy. A little profit is enough. When a lot of small profits come together, that’s a huge profit.”

He conducted research every day before the market opened to see what was happening with the companies he covered, and he took into account behavioral finance to anticipate irrational moves by investors. Those irrational moves drive market inefficiencies, which in turn leave opportunities exposed.

How was the contest portfolio different from a real one? “My experience is that when I am trading in a real account, I cannot always keep my strategy,' he says. "I cannot close the position when I am in a loss, thinking if you close it, I will lose real money. Trading on paper is easy, trading in the real world is not. I don't think I can be a top trader right now, but it's always good to have a try. Now, I am getting some interviews from proprietary trading firms, trying to be a top trader by accumulating more experience and knowledge.”

Ge’s virtual net worth two months after the start of the competition was $280,338.56. The top-ranked player amassed $1,334,897.33. For more information about this year’s competition, visit http://www.marketwatch.com/game/wsj-student-index.