Students find ups and
downs while trading
By Luis Zepeda
Daily Cougar Staff
Thousands of dollars were earned and then
lost in a matter of minutes. A student walked away in disbelief from the
trading pit after losing
$50,000 worth of stock in natural gas
futures. He was the latest victim of the unpredictability of the market
— but lucky for him, the money wasn't
real and the stock was fictitious.
Lorrie Novosad/The Daily
Students from the Bauer College
of Business experience buying, selling and trading stocks at the "Finance
Association Open Out Cry Trading
Competition" on Saturday.
Thirty business and finance students at
the Bauer College of Business got a taste of real-world experiences on
Saturday at the inaugural
"Finance Association Open Out Cry Trading
Competition" that simulated real world transactions negotiated in an open
out cry fashion.
"Overall, the competition allowed students
to interact with local corporations in the Houston area and allowed them
to a forum to show their
skills and talents off. Hopefully it will
benefit them in getting jobs," said Percy Kapadia, student trading competition
Students received advice on trading techniques
from professionals before the trading began.
"Take your losses. A lot of small losses
is OK; one big loss and you're gone. Think small losses, big profits,"
said David Signet, director of
Financial Products at Amerex. "If you've
got a bunch of loses at $100 a piece and a couple of $5,000 winners, you've
had a good day."
The new AIM Center for Investment Management
in the Bauer College of Business was host to the competition, drawing more
participants and dozens of bystanders
wanting to find out what all the fuss was all about Saturday.
"(This competition) brings business partners
into the college, like Amerex and others, with whom we need to build strong
Daniel Currie, executive director of centers
and institutes at the College of Business. "They're going to hire our students;
they are going to ask us
to provide training. It's a proposition
where everybody wins."
Judges measured how much money the students
earned and how well they executed their trades in multiple business scenarios
closing bell to determine a winner. Cash
prizes wereawarded to the top three participants.
Business and finance student Peter Nguyen,
with a hypothetical net gain of $233,000 in stocks, secured first place
and a check for $250. Gabriel
Mcgaughey and Chris Tea took second and
third with net gains of $97,000 and $59,000, respectively.
"Without having something like this it
is very difficult to have access to real life situations," Nguyen said.
"Adrenaline rush, education, free food,
what more can you ask for?"
Sponsored by the UH Finance Association,
Amerex, Duke Energy and the New York Mercantile Exchange, among others,
planners hope to attract students and
graduates to the Bauer College of Business, Kapadia said.