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Copyright © 2016, Michael D. Jenkins, Esq. and Ronin Software
All Rights Reserved
 

SPECULATOR: THE STOCK TRADING SIMULATION
PRODUCT INFORMATION (VERSION 1.10)

 


THE "SPECULATOR" STOCK, BOND, OPTIONS AND FUTURES TRADING GAME -- FAQ'S

  • WHAT IS THE "SPECULATOR" SIMULATION? Speculator is a highly realistic stock market game, in which up to 10 players (9 of whom can be computer players) compete among themselves, trading in the treacherous stock, bond, options, and commodity futures markets, to try to grow an initial stake of $100,000 into the millions -- or lose it all!

  • WHAT IS THE TRADING ENVIRONMENT LIKE? Players do their trading and investing in a simulated "live" stock market environment and global economy, with a constantly scrolling stock ticker and news headlines ticker, while keeping one eye on a "watch list" of stocks whose prices are constantly changing, and flickering, constantly changing commodity prices and interest rate quotes and economic data. Play is occasionally interrupted by important news announcements that can signal major changes in the investment climate, which you will need to adapt to in the best way you can.

    You will quickly find, because of the very realistic stock and bond pricing in the simulation, that "good" companies are almost always trading at very rich prices, and that stocks that look cheap usually have serious problems and will need some good luck (or a lot of time) for their fortunes to change for the better.

    Hmmm.... This investing thing isn't easy!!

    Accordingly, we think you will find that making profitable investments in Speculator is almost as difficult as in the real stock market. If you buy stock of a company that isn't doing well, you may need a lot of patience before it turns around -- if ever. Or, if you invest in a hot stock that is "on a roll," you will usually find that it is already trading at a high P:E multiple, so it will take a nosedive if anything goes wrong, like a "miss" or decline in its earnings, so you will need to keep one finger on the trigger, hitting the "Sell" button at the first sign of trouble for the stock, since there is little or no margin for error with such "high-flyers."

  • HOW LONG DOES A GAME LAST? Each game (which can be saved at any point) lasts for 1 to 30 years, as you choose at the start of each new game. In the "shareware" version, games are limited to 3 years, and the more sophisticated trading tools (buying on margin, short-selling, options trading, and futures trading) are enabled, but you will have to be an excellent stock and bond trader to become eligible to use those advanced methods in only 3 years of play, since you have to increase your initial $100,000 stake to $200,000, $300,000, $400,000 or $500,000 before you are eligible to use those advanced trading tools.

  • WHAT IS THE SETTING? The game assumes you and each other player has gotten his or her "stake" of $100,000 to start the game the old-fashioned way -- you inherited it. You can play in an income tax-free environment (where the money inherited is assumed to be in a tax-free retirement account), or can play at Level 2, where you pay income taxes on dividends and interest you receive, and (at a lower tax rate) on capital gains, if any. Or play at Level 3, which is the same as Level 2, except that companies in certain industries may become subject to special taxes on capital that can reduce their profits, such as carbon taxes, health care taxes, etc., which can make some of the usually profitable industries less profitable to invest in.

  • WHAT IS THE OBJECT OF THE GAME? As you may have already guessed, the object of the game is to increase your initial $100,000 net worth as much as possible by shrewd investing. In the Registered (paid) Version, you are given 30 years in which to try to build this modest nest egg into a fund for your retirement. At the end of each game, the program will tell you what your average annual rate of return was on your portfolio and will evaluate how well you have done. Or how poorly -- in short, whether the result of your investing will be to spend your retirement years dining on lobster and caviar on your yacht, or surviving on Nine Lives Tuna and sleeping under bridges.

    (The other, less obvious, object of playing Speculator is to give you a sense of what it is like to invest in stocks, bonds, options and futures, in an online discount brokerage account, and perhaps teach you a thing or two about the real world of stock market investing, how to do investment research, and to gain a better understanding of what makes stocks and bonds go up or down. In short, learn to invest by doing, seeing what works and what doesn't.)

  • ARE THERE TRADING RESTRICTIONS? Initially, in each game, because you are a "newbie," your stock brokerage firm where you have your account (McSwindle, Churn & Tout, for example) will only allow you to invest your $100,000 inheritance in stocks and bonds, including convertible bonds. Nothing too fancy or risky is allowed initially, since you are considered a novice at investing, until you can prove otherwise, by making good investments. "It's for your own protection...." In short, you will need to demonstrate that you are skilled enough at investing to be eligible for a margin account, or to engage in short-selling, options trading, or futures trading, before your brokers decide that you are eligible to engage in those riskier strategies.

    Once you have doubled your initial $100,000 stake, you will be approved for margin trading (i.e., borrowing from the broker, to buy stocks or bonds). If you can increase your net worth more, to $300,000, you can then begin to also do short sales of stocks, a more risky trading strategy.

    At $400,000, you become eligible to trade put and call options (on stocks), which can be even riskier, but options can also be used in very conservative strategies like covered call writing, if you are so inclined. If you can build your account net worth up to $500,000, you will have become an expert trader, a "gunslinger" eligible for trading futures on any of several commodities (oil, gold, silver, wheat and corn) and on the Stock Market Index of the 1,000+ stocks in the simulation. (Once you achieve a new Trading Status, you will not lose that status even if your net worth falls back below the required minimum.) However, if your investments do very poorly, you may go bankrupt, or if your initial account value of $100,000 falls below $10,000, your broker may soon close your (too small) account, in which case you will be ejected from the game. (Game over. Goodbye!)

  • CAN I PLAY IN CURRENCIES OTHER THAN U.S. DOLLARS? Yes, you can figure each game, at the start, in any of 18 other currencies (Euros, Pounds, Pesos, Swiss Francs, Ringgit, Shekels, Yuan, Rand, Reals, Aussie dollars, etc.) and each currency has a default exchange rate that was up to date at the time the program was released (but you can reset the exchange rate if the default rate has become outdated or unrealistic). Thus, if you choose to play in another currency, you will start off with the equivalent of $100,000 U.S. in the currency you selected.

    (Version 1.10 of the program lets you change the exchange rate if you wish, since currency exchange rates change over time.)

  • WHAT ARE THE "ROOTS" OF THIS SIMULATION? Speculator has its roots in the popular Wall Street Raider game, but is considerably more challenging, since you have to make your market profits in Speculator by smart investing (or speculating). In Speculator, you don't start out as a billionaire, but just as a small, middle-class investor, who has inherited a nice $100,000.00 "nest egg." You are not allowed to take control of companies or try to manipulate their stock price, as you can do in Wall Street Raider. In fact, no matter how successful your investments are in Speculator, you are not allowed to acquire more than 5% of the stock of any company -- and even that will be a stretch, considering that you start out with only $100,000 U.S. or the equivalent in any of 18 other currencies. (Euros, Pounds, Yuan, etc.) and that it will usually take at least tens of millions of dollars to buy 5% of a company.

    If you are accustomed to playing Wall Street Raider, you know it is mainly a game of corporate high finance, where you, as a billionaire, are able to take over companies and use all types of complex megabuck corporate transactions, such as mergers, liquidations, buybacks, spin-offs, and interest rate swaps to build a corporate empire, manipulate company earnings and stock prices, and dominate whole industries. In contrast, in Speculator, you are just a "little guy," or "retail investor," trying to grow that initial $100,000 nest egg you inherited into a nice, comfortable retirement fund in 30 years.

    As such, you have to acquire the skill to sniff out good investments and sell them when the time is ripe, thus Speculator is designed to realistically test and hone your skills as a value-seeking investor or trader. As in Raider, all the big corporate transactions (mergers, megabuck swaps derivative deals between companies, etc.) still are occurring in the economic/market model in Speculator, but as a small investor, you are not a deal-maker, or corporate baron, just an innocent bystander, a small investor who simply observes these things as they occur, and tries to figure out how to profit from them -- and how to avoid being trampled by the market elephants.

    For example, as in Raider, you are able to vote your shares of stock on a proposed merger, when another company is proposing a merger deal with a company whose stock you own, but how you vote your measly few hundred or few thousand shares is very unlikely to have any effect on the outcome, when millions or billions of shares of stock are being voted. Thus, like most real-world stock investors, other than a few billionaires like Warren Buffett or Carl Icahn, you can only observe the proceedings and try to make sense of what you see and perhaps profit from it.

  • ARE THERE CHEATS? Of course! You can cheat by getting "inside information" that is usually extremely valuable, but you run the risk of being subjected to massive fines for being a "tippee" who has engaged in illegal "insider trading." Or you can simply add up to $500,000 to your account. Naturally, if you use any of the cheats, you will be disqualified from being the winner of that game, but can continue playing. Also, your Trading Status (Novice, Margin Trader, Short Seller, Options Trader, or Futures Trader) will be frozen at the level you had achieved immediately before you cheated, so you can't use the cheats to raise your Trader Status -- you have to EARN your higher trading privileges by making good, smart investments.

  • WHAT IS THE LATEST VERSION OF SPECULATOR? On October 15th, 2016, VERSION 1.10 was released, with a number of improvements, including:

    • Setting Currency Exchange Rates: The new version lets you set the exchange rate when you start a new game in a non-U.S. currency.

    • Convertible Bond Database Search Improved: Now you can exclude "busted" convertible bonds from a database search for convertibles, by letting you set a maximum conversion premium, such as only showing convertibles that trade at less than that conversion premium percentage, such as 20%.

    • Limits on Position Size: Position limits now close a large "loophole" that allowed a player with enough money to sell short more than 100% of the stock of a company, or have an options position on more than 100% of a company's stock. That "loophole" was unrealistic, so we closed it.

    • Improved Listings of Stock, Bond, and Other Asset Listings: We listened to suggestions from players about making portfolio lists of stocks or other assets, balance sheets, and cash flow statements more readable, in several ways, and now show the per share or per bond cost of each stock, bond, or option, next to the current market price, instead of the total cost of the position.

    • Turnarounds of Sick Companies: It was a bit too easy to short troubled companies and wait until they were bankrupt or nearly so to cover the short at a big profit, as such companies rarely made a comeback. Now such companies are more likely to have a beneficial management change and have a turnaround, making short sales of their stock riskier.

    • Other: This version includes too many small but useful improvements in appearance, tweaks of algorithms, and other changes to try to list here. It is file-compatible with saved game files from the prior releases.

    SEE OUR UPDATES INFO PAGE FOR DETAILS ON THESE CHANGES AND OTHER CHANGES IN PREVIOUS RECENT RELEASES. See our latest press release regarding v. 1.10 of Speculator, at: www.roninsoft.com/trader/presser.htm.


TRY THE FREE TRIAL VERSION OF THE SOFTWARE:

  • DOWNLOAD A FREE ("SHAREWARE") VERSION HERE: We believe in "Try before you buy," so you can download a copy of the free "shareware version" by CLICKING HERE. The shareware version is generally the same as the Registered Version, except that games are limited to 3 "years" of play. Also, stock charts are not always available in the shareware version and it uses fictional company names. The Registered Version allows you to play games of up to 30 years in length and stock charts are enabled for all stocks, plus the Registered Version mainly uses real company names for the 1500+ stocks. In addition, the Registered Version comes with a "Customizer Utility" program that lets you change the names, stock symbols, and nation of incorporation for any of the companies in the simulation.

  • ONLINE REVIEWS: To see reviews of Speculator, or its sister program, Wall Street Raider, check out WWW.REVIEWNOW.COM.

    Vote for Speculator: The Stock Trading Simulation at reviewnow.com


ORDER THE REGISTERED VERSION HERE:

  • ORDER REGISTERED (FULL) VERSION: If you liked what you saw in the "shareware" version, CLICK HERE to order the registered version ($19.95 U.S.), and start working your way up the investor food chain to Short Seller, Options Trader, or Futures Trader status!

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  • HALF-PRICE FOR REGISTERED USERS OF WALL STREET RAIDER. The price is reduced to $9.95 for anyone who is a registered user of Wall Street Raider. (E-mail the author at MDJENK {a t} A O L ... [.] ....C O M for the $9.95 ordering link if you are a registered user.)


ALTERNATE SCREEN SIZE CHOICES:

  • SCREEN SIZE SELECTION: Note that Speculator has a small main screen (see top of this page, left) on which your account net worth and information about the current "Selected Company" are constantly updated while the stock ticker is running. But if you choose, you can also display a separate "watch list" screen of stocks in which you are interested, or a screen listing current prices of commodities, interest rates and other economic indicators, or both such "streaming quotes" screens (as in the above image). Each of those two subsidiary screens, as well as the main screen, is updated constantly when the stock ticker is running.

    All of the menus for trading, company info, industry info, and economic research tools, and your brokerage account information are accessed from the five red buttons on the main Speculator screen, or by clicking on a displayed commodity price to trade futures on that commodity (once you are eligible for futures trading).

    Alternatively, each time you start the program, you can select from the "Game Options" menu a large screen display with most menu buttons and information displayed on that one screen, as shown below:

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Copyright © 2016 Michael D. Jenkins, Esq. and Ronin Software