$72M ‘whiz kid’ investor made the whole thing up
Oh dear, 17 year old makes up a story trading in simm mode that he made a massive return, embarrassed his parents and clearly embarrassed the reporter and the editor of the magazine that ran the story. People love a good rags to riches story, especially when it’s a teenager that did it. What a silly thing to lie about. Here are links to the story:
http://www.cnbc.com/id/102271434
Fact is, anyone can be a genius in simm mode, but add in a good helping of emotion that comes with real money and let’s see how you do. There is no replacing real trading in my opinion. I honestly think simm trading is a waste of time. Back testing is VERY important, as you have to be able to see that a strategy has worked in the past, and even more vitally, be able to trust it going forward. However, simm mode is not like real trading.
This brings me to the realization that my eldest son just started trading at 9, just as the kid in the false story did. I wonder if he will be asked to be on CNBC at 17? He saved his allowance money since he was 5 to have $1000 to open an account. It was a proud moment going to the bank with him to withdraw it so we could open an account for him. Anyway, he began in September this year and has a 67% return so far following the system. But $72m? Hmm…well anything is possible!
Market News:
U.S. stocks gyrated on Tuesday, as equities tracked the price of oil and pondered the impact of lower energy costs and Russia’s economic troubles on policy decisions by the Federal Reserve.
Wall Street hears from the Fed on Wednesday, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.
After falling to lows not seen since the spring of 2009, crude futures for January delivery on Tuesday fell to a low of $53.60 a barrel, then shoot up $1.24 to a high of $57.15 a barrel, and closed at $55.93, up two cents and halting a four-day loss streak.
New-home construction in the U.S. topped a million on an annualized rate in November, while housing starts fell 1.6 percent and building permits declined 5.2 percent last month.
An industry report on Tuesday had the U.S. manufacturing sector continuing to expand in December but its growth rate at an 11-year low.
Equities around the globe had declined as Russia vowed further action to stabilize its markets after an unexpected interest-rate hike and a measure of factory activity in China dropped to a seven-month low in December.
Wednesday:
Second day FOMC meeting, Greek elections
Earnings: FedEx, General Mills, Joy Global, Oracle, Apogee, Jabil Circuit, Worthington Indusries
7:00 a.m.: Mortgage applications
8:30 a.m.: CPI
8:30 a.m.: Current account
10:30 a.m.: Oil inventories
2:00 p.m.: Fed statement and projections
2:30 p.m.: Fed Chair Janet Yellen press conference
News source: CNBC