Have you ever wanted $1 million to throw around? A couple $1,000 here, a few $100 there, maybe use some to turn a quick profit?
Some people will only dream of having $1 million, but at "the UpDown" www.theupdown.com, this dream becomes a virtual reality.
The UpDown is an online social network for investors dedicated to the notion that community insight and analysis can foster a successful investing methodology, said Michael Reich, UpDown co-founder and CEO.
However, it is the Web site's $10,000 student investment competition that is making investors out of college students all across the country.
The winners of the competition will be determined by the stock analyses they submit and the return on their portfolios, according to the Web site.
Self-admitted investing beginner Vivek Tomer (graduate-material sciences and engineering) has been one of the top performers in the competition. Tomek is currently ranked 19th in the competition standings.
Despite his lack of investing experience, Tomer has developed a successful strategy based on patience and research.
"You don't have to be on the Web site 24 hours a day," he said. "If you read, understand and have an idea you want to try, [the Web site] provides a great opportunity for you to try your investment strategies."
The first step is to log on and create an investor profile. Once a profile is set up, investors are given a virtual sum of $1 million to invest as they see fit. However, an investor's performance with the virtual money can net them real money, Reich said.
"We pay real money ... to members whose portfolios outperform the S&P 500 and to members who submit the most insightful stock analyses during each week," he added.
The best investment strategy is usually the easiest strategy, Tomer said.
"Invest in what you understand," he said. "Pick companies you are familiar with before taking any big risks."
Launched in September, Reich said the Web site has continued to grow in popularity among experienced and novice investors alike as a forum to test their investing strategies.
The Web site's unique community-based structure provides a pool of information and research from which individual investors can better employ their own investment strategies, Reich said.
"Even if you've been around [investing] for awhile, you can benefit from other people's ideas while they can also benefit from your research," he added.
Tomer said the Web site allows its users to play out their trading strategies.
"It is a great way to learn from the market because you can never be sure if your ideas are good or bad," he said. "You want to make sure your ideas are effective enough before you start using real money."
Both Reich and Tomer agreed that the goal of investing is financial independence.
"I think investing is a fantastic opportunity to make more of what you earn," Reich said. "In order to do it successfully, you need to learn about it first."
Tomer said it is important to become financially free.
"At the end of the day, you don't want to have to only rely on salary for income," he said, "and investing provides the opportunity for financial freedom."
