Market volatility and great emotions. The results of the first round of the TMS competition

Crash in the oil market, sea of ​​red flooding Wall Street and uneven struggle between central banks and the market. When he moved 5. TMS Brokers investment educational contest no one thought that there would be so much going on in the markets. The use of volatility was the key to winning previous editions. However, this requires much more from players.

Rivalry  began on Monday, March 9. Many interested parties joined the competition again. One wanted free education through practical play, the other  on competition. Many were tempted by the vision of real prizes, the pool of which amounts to PLN 14.

Price war

The competition began when the market circulated information about events from the oil market. The OPEC cartel failed to reach an effective agreement with Russia to limit daily production, so a price war began. Black gold fell by around 30%, creating an almost perfect - because it is characterized by high volatility - conditions for trading. The person who maximizes their rate of return wins the competition round

Crash in the oil market  for only a moment was the number one topic of financial markets. Investors' attention is attracted daily by new reports related to the conronavirus pandemic.

Stock indices in the first week of the TMS mobile competition recorded declines that had not been seen for many years. WIG20 recorded the worst session in history (losing over 13%), and the US Dow Jones - the worst trading day since 1987. In three weeks the market corrected gains built over 33 months. The scale of the discount (over 20%) suggests that the US market has entered a bear market.

EVERY ROUND IS A NEW CHANCE FOR VICTORY

Fight against recession

Central banks stood up to fight the potential crisis. The Fed cut interest rates for the first time since March 2008, 3 and for the second time (bringing rates down to zero) on March 15. Following Federal Reserve other central banks went, including Australia, Canada, England. The ECB did not deepen the negative level of the cost of money, but announced the implementation of a package to increase lending. The market was counting on foot traffic, but the head of the ECB did not manage to calm the mood, which is why on Thursday, March 12, she described herself as "black". The sales machine has started and it will be hard to stop her. All the more so the world needs fiscal stimulation. Ahead of us another week of struggle. We certainly won't be able to complain about the lack of events.

Investors in the TMS mobile competition are competing for prizes by earning the highest possible returns. In the first week they soared to extremely high levels.

Capital curves of the best investors in the first week of the TMS Brokers competition.

Compared to the same period 4th edition of the competition (organized in autumn 2019), the first 5 days of the current competition took place in completely different market conditions. The high volatility on many instruments meant that the rates of return from the times of higher financial leverage on the OTC market returned. The player closing the top 10 almost quadrupled his initial capital (4 euros). The best trader with the nickname "Czorcik" was beyond the reach of other players. The rate of return at the level of 10 percent. works on the imagination.

Unused potential

The key was the "Black Thursday", the day when the broad stock market lost the most. On that day, the leader definitely increased his advantage over his rivals. After analyzing the results, it can be seen that the first 10 of the general classification did not make full use of the opportunity to collect points that could be obtained for instructions. There are up to 30 of them to collect. Collecting these points can completely change the scoreboard. We encourage you to join the competition. There are two weeks of competition ahead of us. There is a lot going on in the market, don't hesitate - join the competition and play for real prizes!

Ranking after the first week of the TMS Brokers competition.