HSX Forum

Playing & Trading Strategy

the game changes could change reset trading...

Posted by: RazorHawk on Nov 03, 15:54 in response to tealfan's post I had the same question...not disagreeing...just...

With my understanding of the game, I believe "...reset trading to not have as much of an affect on stock prices".

I did not say "reset trading will be minimized by the changes".

 

I believe that the three changes made to the game this week will alter the affect reset trading has on prices.

1) Volatility - since it is so easy to trigger a stock price change,  I believe instead of seeing 20 or so stocks move after reset to jump on, we could see 50-100+.  I am thinking there will be too many stocks to chase after and instead of having a handful of stocks being heavily traded, the same amount of trades will be spread over a greater number of stocks  ...

 

[more stocks will move at reset (the same amount of trades will be spread over a greater number of stocks) = lessening the affect of reset trading]

 

2) Number of shares held - now that there is a higher limit of shares held, it will tie up more money, and cost more commission per trade.  That slows down many of the smaller ports who do the reset trading and that lessens the effect of their reset trading.  Smaller ports wil not be able to affect as many stocks as they used to because more of their money will be tied up per invested stock...

 

[more stocks will move at reset (the same amount of trades will be spread over a greater number of stocks) + traders will be buying less (more shares tie up more money and higher commissions charged)= lessening the affect of reset trading

 

3) Price increments - prices now move .01 at a time.  DMac hinted that even one player investing could trigger a price change.  So at reset, lets say 75 stocks move .01 and you have determined which of those stocks you will invest in.  Lets also assume that a 75,000 share trade triggers a .01 price change.  Your reset traded stocks will now be at .02 change (with your 75,000 share investment).  Now you just need other players (.01 per player) to jump onto your stock (that moved .02) in order for your reset trading to work. That is like over 100 players (picking the same stock at reset) to move the price $1. How many players do reset trading?

 

[more stocks will move at reset (the same amount of trades will be spread over a greater number of stocks) + traders will be buying less (more shares tie up more money and higher commissions charged)+ prices wont move as much/as fast (now requires more players to move the price to same level as before) = lessening the affect of reset trading

 

In the past it has been possible to wake up and check your port at 8am and find stocks that had already moved 5pts or more (due to reset trading).  Reset trading succeeds only when reset traders spot a moving stock at reset and invest in it giving it some momentum that other players notice throughout the rest of the day that in turn causes them to invest in that same stock.  I believe that the new changes will hinder this setup.

 

Instead of 5-10 stocks standing out at reset, there will be alot more to choose from (diluteing the concentration of investments in each stock made at reset), commission and cost to invest in stocks will deter the number of investments that are actually made, the price increments will effect the number of investors who jump onto moving stocks later in the day (stocks that move .83 arent sexy) and there will be so many moving stocks in the game that there will be random chaos are not predictable trading pattern that reset trading (and day trading) rely on to be profitable.

 


These are just my thoughts, and traders are more than welcome to choose any strategy they wish to play HSX without offending me.  Once this initial phase of players maxing out their shares ends (in a few weeks), I do not see daytrading/reset trading affecting the game/prices as much as it used to.  Reset traders will tie up more money, see less price profits and slowly (one by one) stop reset trading altogether.  I see prices will start reflecting the actual progress being made on a project and news items and weekend adjusts being the real moneymakers (until a new form of reset trading/gimmick is discovered).





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