Have you been itching to trade stocks lately due to the softening stock market but have hesitated so far simply because of lack of confidence or knowledge? Or are you a teacher wishing to take your class to the next level of financial competency?
Personal finance is a hot issue right now, rendered even more critical considering the uncertainty surrounding a global economy that just seems to get worse by the day. How playing a stock investment game can help you earn more money?
By the time you spot that stock or trend that seems favorable to your own situation, you will feel very confident about your own abilities and be able to trade stocks in a cool-headed manner that will lead to success without the emotional baggage.
Some seasoned investors have been known to play stock investment games to test new trading systems and get a feel of how they will perform in real life, meaning that some of these stock investment games have the ability to track real life investing with market research and other tools needed to successfully complete trades.
A few game platforms even offer real cash or prizes to the most successful investors; however, if cash or prizes are to be chased, keep in mind that people can and do cheat, so beware.
Three common tricks people can use playing the stock market:
- Multiple accounts. Unlike real life where investors really only have one account to trade stocks with, game players can set up multiple accounts, thereby be able to take positions on both ends of the trade, effectively enhancing the upward or downward movement of a stock. Many virtual investment games specifically prohibit this behavior.
- Collusion. Just like other online games, collusion between different players can occur, especially when there is a limited number of players involved. Of course, if you were to encounter this situation, then you will be able to see in real time how penny stocks can be manipulated in real life and learn a very valuable lesson.
- Company news. The SEC requires publicly traded companies to file quarterly reports detailing their financial health, and conference calls are periodically conducted with analysts who follow the companies, aiding in the assessment of future prospects of the companies. However, virtual players can spread disinformation about the companies, and overt hyping should be checked against real-life events.
Playing the stock market game can help you earn more money and teach you everything you should know about these critical elements of stock trading:
- Market orders
- Limit orders
- Stop loss orders
- Margin calls
- Partial fills
- Trading commissions
- Execution time lag
- How to conduct due diligence
- How to read and analyze charts
- What Beta means
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Virtual investment games are generally free to join, and after setting up an account, players will be provided with virtual currency to start trading. Games can be played individually or with a group, and you can even start your own group of players that can include friends, family, and even that seasoned investor friend of yours to provide additional guidance. Forums and discussion groups are also good venues for further information gathering and feedback about your own investing strategies.
Reviewers have mentioned the following stock investment games:
- Stock Market Game
- Wall Street Survivor
- Market Watch
- CNBC SST
How playing a stock investment game can help you earn more money will be vividly illustrated to you after you have played the games for a period of time and will lead the way to your becoming an experts stock trader in your own rights.