Years ago, Quartz built a little browser game that let you try to time the stock market. You’d start with $10,000 invested, watch a random 10-year period of S&P 500 history unfold, and get exactly one chance to sell and one chance to buy back in. A snarky financial commentator would taunt you along the way. The game was brilliant because it taught a lesson that no amount of lecturing could: timing the market is really, really hard.
At some point Quartz stopped maintaining it. The game no longer works and just displays a “click here while we work on restoring it” message that hasn’t been updated in years.
So I rebuilt it.
The premise is simple. You start fully invested. A chart of real S&P 500 data ticks forward. You can sell when you think the market’s about to tank and buy back in when you think it’s bottomed out. At the end, we compare your result to what you would have earned by simply doing nothing.
The spoiler on the page says 92% of day traders lose money. That number is, if anything, conservative. A study of Brazilian futures traders found that only 3% were profitable, with just 1.1% earning above minimum wage. Research on Taiwanese day traders put the consistent profitability rate below 1%. A 1999 NASAA investigation of day trading firms found that 70% of customers lost money, leading the analyst to conclude that 70% of public traders “will not only lose, but will almost certainly lose everything they invest.”
The striking thing isn’t that most people lose. It’s that they keep trying anyway. One study found that 95.3% of unprofitable day traders continued trading in the following year. Performance had almost no effect on behavior. People who lost money were almost as likely to keep trading as people who made money.
This is what the game is really about. Not the difficulty of timing the market, but the confidence that you can. You watch the line go up and you know you could have bought earlier. You watch it crash and you know you should have sold. The certainty feels earned. The game reveals it as illusion.
The original Quartz game had a saying appear at the end: “Time in the market, not timing the market.” I kept that spirit. But I also liked what another similar game referenced, quoting the conclusion from WarGames: “The only winning move is not to play.”
Or rather, the only winning move is to play the boring way. Buy. Hold. Ignore the taunting voice telling you that this time you can see what’s coming.