UpDown | The social platform for virutal investing. Beat the market. Earn real money. Zero risk.
Frequently Asked Questions
1 Getting Started
Do I have to pay to belong to UpDown?
No. There is no cost or risk to joining UpDown! You can actually even make real money.
Is the money in my portfolio real?
No. The money in your portfolio is virtual money that you can use to improve your investing skills.
Can I see other members' portfolios?
No. You cannot see other members' portfolios for now, but we're working on a way to make part of the portfolio data available to members.
Can I share my trades with other members?
No. You cannot share your trades with other members, but you can form a group and manage a group portfolio together. This is a great way to work closely with other talented investors.
2. Making Real Money on UpDown
TopHow can I earn real money on UpDown?
There are three ways you can earn money at UpDown:
Beat the market
UpDown rewards great performance on a monthly basis. The rewards will be determined by how much your portfolio has beaten the S&P 500 index (1) in the last month and (2) since you started.
Beating the S&P 500 by a wide margin earns you more money, but a much bigger reward comes when you also have a consistently strong track record.
Thus to be eligible to earn money your portfolio must:
- Have performed better than the S&P 500 in the last month
- Have performed better than the S&P 500 since start
- Have beaten the S&P 500 by a higher margin since start of the last month than it did at the end of any previous month (high watermark rule)
- Contain at least 1 stock
In addition:
- You must have logged into your portfolio at least once during the last 2 months
- You must have an account with a verified e-mail address
Submit Quality Stock Analyses
Every week we pay $10 for the highest quality stock analyses. Our choice is guided by:
- How many votes the analysis has received from other members and its average rating
- A qualitative assessment of the analysis compared to other stock analyses
The more stocks you analyze well, the greater your chances of earning money.
PLEASE NOTE: The compensation system for stock analysis is currently suspended and under review; please share your thoughts about how it should be structured at the UpDown group discussion board (you must join the UpDown group in order to contribute).
Refer Friends to UpDown and earn a Bonus
Do you know savvy investors that would enjoy UpDown? Refer them to UpDown by using the "Refer A Friend" button. We will reward you with a bonus that is equal to 10% of what the people you've referred earn. You will receive the bonus whenever your referrals earn money.
How do I receive the real money I earn?
UpDown pays its members through PayPal. You must set up a PayPal account to receive the real money that you earn on UpDown. When you earn real money, you will be able to claim it on your UpDown home page. Once you claim your money, we will transfer it into your PayPal account within two business days.
How much real money can I expect to earn each month?
The amount of real money that you earn on UpDown each month, assuming that you meet all of the conditions to earn real money listed above, depends on three factors.
- The margin by which you beat the S&P 500
- The performance by the rest of the UpDown Community
- Your investing track record on UpDown
- Identify several stocks you want to analyze (these can be companies whose products you are familiar with or that you've read about recently)
- Look at their fundamental data (revenues, earnings, etc.) and compare these companies to their competitors. If you know how to, try to make a Free Cash Flow analysis to determine the fair value of the company.
- Study recent news coverage of the companies you've chosen and take a look at the recent stock price.
- If you think the stock is undervalued (i.e. cheap), then buy it!
- Monitor the stock closely and sell at the right moment.
The mark of a great investor is consistent exceptional performance over a long period of time. Therefore, you will earn the most real money when you outperform the S&P 500 and your peers by a large margin and continue to do so over many months during your UpDown career.
Most members can expect to earn only small amounts of real money, especially at the beginning of their UpDown careers, but the best investors on UpDown will distinguish themselves and, as you can see on our Top Investors and Top Money Earners rankings, make a lot of real money.
3. Help with Trading
TopI am brand new to investing, how do I start?
There are hundreds of different investment styles and strategies. Here is a basic way to get started:
It's important to understand that investing on UpDown is about learning how to invest. At times you will pick stocks at the right moment and at other times you may not, but you will learn a lot in the process!
Can I have more than one portfolio?
No. Right now you can only manage one portfolio.
When I trade in my portfolio, I see that there is a $100 commission per trade. Is this a real money commission?
No. The $100 commission is a virtual money commission. It is deducted from the virtual money balance in your portfolio.
Why do you hide the trading price for 15 minutes after I place an order?
Trading on the UpDown relies on real-time prices on the real-world stock exchanges. Due to stock exchange regulations we are required to hide real-time prices for 15 minutes. Note, however, that your cash balance will immediately reflect the real-time price you got.
Why can't I see the real-time price before entering a trade?
Even though trades on the UpDown are executed at real-time prices, stock exchange rules require us to delay showing you the price for 15 minutes.
What do the different order types on UpDown mean?
Orders on UpDown work mostly like real-world stock market orders but since we are operating a simulated environment there are a few subtle differences worth keeping in mind.
Market orders
When you enter a market order you are essentially saying: "I'll take whatever the going price is when I enter the order." In our simulated trading environment this means you'll receive the last price that occurred on the real markets at the time you enter the trade. Note that we don't consider "ask" or "bid" offers that might be available in the real world. If you enter a market order after hours you'll receive the opening price on the following trading day. During market hours your order will be executed immediately at real-time prices but due to stock exchange rules on real-time prices, we are unable to show you the price you got until 15 minutes after you enter the trade. Your buying power, however, will immediately be updated according to the actual price you got. Finally note that even if we execute at real-time prices, you will be making your trade decision based on a 15 minute old price (unless you have access to real-time quotes elsewhere).
You can cancel market orders that you enter after hours as long as the markets have not opened yet. In this case the commission will also be refunded. During market hours, orders will be processed immediately so no cancellation is possible.
If you want to specify the price you want (e.g. protect from the potential price difference in the delayed price and the real-time price), you should consider placing a limit or stop loss order instead of a market order. Unlike market orders, limit orders and stop loss orders are not guaranteed to execute, but if they execute the price is guaranteed.
Limit orders
In contrast to market orders (which guarantee execution but not price), limit orders allow you to set the price - either the maximum amount you're willing to pay (for a buy and "buy to cover" order), or the minimum amount you're willing to receive (for a sell and "sell short" order). Execution of a limit order is not guaranteed.
Of course, if the stock is selling higher than your sell limit order, you'll be filled at your limit price or higher. If the stock's price is lower than your buy limit order, it will be filled at your limit price or lower.
You can choose from "Good for day" and "Good for 60 days" for limit orders. If you enter a limit order after hours and choose "Good for day" it refers to the next whole trading day.
Example: Let's say ABC's current price is 23. You place an order to buy at a limit price of 20. If the price of the security falls to 20 or below, your order will be executed at that price. If you had placed a limit order to buy at 23 or above, your order would have been "marketable" and executed right away. Note that limit orders carry the risk that the stock may never reach your limit price if you place a limit order "away from the market." This means that your limit price is below the stock's current price (if you're buying) or above its current price (if you're selling). The farther away from the market your limit price is, the higher the risk your limit order will not execute. For example, if ABC is at 23, and you place a limit to purchase at 20, your order will not fill if the stock price never reaches 20.
You can cancel limit orders that haven't executed at any time. The $100 commission will be refunded if a limit order does not execute (i.e. if it expires or if you cancel it).
Stop loss orders
Stop loss orders are orders that have "triggers" - they execute only when the stock reaches a certain price. These orders are used to protect a gain on a profitable long or short position, and they are therefore only available for "sell" and "buy to cover" orders.
When you place a stop loss order, you're placing an order that will turn into a market order when the stock reaches the stop price. "Buy to Cover" stop loss orders are set at a price above the current market price. Sell stop loss orders are set at a price below the current market price.
For example, let's say a stock you own is trading at 25 and you place a stop loss sell order at 20. If and when the stock goes to 20 or lower, your order will turn into a market order and fill at whatever the price was for the first trade that was at or below 20. This could be at 20, or slightly lower (e.g. if the first time the price moves at or below 20, it happens to move from 20.01 to 19.99 you will get 19.99 rather than 20.00).
You can cancel stop loss order at any time prior to its execution. The $100 commission will be refunded if a stop loss order does not execute (i.e. if it expires or if you successfully cancel it).
Finally, note that real brokerage platforms often distinguish between stop orders (that turn into market orders when the stop price is reached) and stop limit orders (that turn into limit orders when the stop price is reached) but on The UpDown there is no distinction and all stop loss orders are guaranteed to execute if and when the real-world price hits the stop price.
Do real world offers affect UpDown prices?
We never consider "ask" and "bid" offers that might exist in the real markets and only consider actual trades (i.e. the last price traded on the real markets).
4. How do I join and organize contests?
TopHow do I join a Contest?
To join a contest, go to the Contests tab and look for running contests. Some contests are open for all to join, some require the organizer to approve participants before they can join. There is no limit to how many contests you can participate in on UpDown.com.
How do I organize a Contest?
To start a contest, go to the Contests tab and look for the "Start your own contest" box on the right. Click on the "Create Contest" button and follow the instructions provided. You can control who can play in your contest and how long the contest will last. Anyone can start a contest on UpDown.com.
How is my ranking determined in contests on UpDown.com?
Your ranking is determined by the percent change of your UpDown portfolio relative to other contest participants for the duration of the contest. Your performance is recorded from the time when the contest starts or when you join the contest, whichever is later, until markets close on the scheduled end date.
Can I use different portfolios for different contests?
No, you always use the same portfolio for all contests - your personal UpDown portfolio.
Do all contests have prizes?
Official UpDown contests such as the Summer 2008 $10,000 Student Contest usually have real-money prizes. UpDown.com does not endorse prizes for contests organized by members. Also, remember that you can always earn real money on UpDown.com for top portfolio performance each month, independent of these contests.
5. How to Start and Manage a Group
TopHow do Groups work on UpDown?
Groups on UpDown provide the ideal online home for both formal and informal investment clubs, providing many benefits to support their activities and to facilitate collaboration among their members.
Groups can either be public (anyone can join) or private (only members you invite can join). Membership and invitations are managed by the Group Administrators.
Once you've created or joined a Group, you can contribute by posting stock analyses or by providing feedback on other members' analyses. Group admins can create and manage a group portfolio and members can easily view the portfolio, and the portfolio performance and stock analyses of other members. Note that group portfolios are not eligible for monetary rewards. Members can interact with each other either through the normal comments and private messaging functionality, or by posting topics to the Group Discussion Board. Use the polling feature to let members vote on group stock picks and market calls.
Soon, Groups will be able to compete in Contests (both internally and Group-to-Group) based on portfolio performance. Another upcoming feature is the ability to keep track of a real-money portfolio.
To join a Group or create your own, click on the "Groups" tab, and select either the "Start a New Group" option or search for existing open Groups to join.
How will investment clubs benefit from creating a group for their club on UpDown?
Investment clubs can manage their club portfolio, vote on crucial trades, pitch stocks, make announcements, and hold group discussions on UpDown. They can also compete with and learn from the many other investment clubs in the community.
How can I join a closed group on UpDown?
If you would like to join a closed group, you can send a message to one of the group administrators, who will choose whether or not to invite you.
If my group portfolio outperforms the S&P 500 over one full month, do I earn real money just like I would for my personal portfolio?
No. You can only earn real money for beating the S&P 500 with your personal portfolio.
6. Additional Help Topics
TopHow does UpDown make money?
Our goal is to make money using the community trading data as a basis for managing an investment fund. The fund's strategy is derived from aggregating and analyzing the virtual trades of all of our members. The trading data is anonymous and no member's personal information is ever disclosed (see “Privacy Policy” for details).
Why can’t I find a certain stock?
We currently only support stocks from the major exchanges nasdaq, nyse, etc. Unfortunately, we don't have support for pink sheet stocks yet.
We hope to add additional asset classes (options, commodities, foreign stocks, etc.) in the coming months.
