Fun Stock Exchange Games – The Plus And Minus
Today there are lots of free market games that you can play on the internet. Some are run by individual share dealing corporations in order to inspire you to open an account with them further down the road, while others are run independently. So what the pros and cons of these market competitions? Are they worth joining or are they simply a waste of time?
Well let’s begin with the advantages firstly. The major one is that if you’re a comparative newbie to the entire area of stock exchange investing, then by indulging in these games you will learn how to sell and buy shares, regardless of whether it is just using pretend money. Additionally by buying shares in a fictional portfolio you will start to find out more about how share costs essentially move and how they are influenced both by company-specific reports, and by the broader stock exchange generally. You will also hopefully learn the seriousness of timing and why you should cut your losses early to avoid losing substantial sums of money. Forex is a reasonable alternative, as entry barriers are significantly lower.
Another advantage of these fantasy share trading games are that there are often decent prizes to be won. So if you are a professional investor, you may use all of your experience to try and essentially win the entire competition and grab the top prizes. So there are many reasons why you should think about entering a few of these competitions, but they do also have their flaws also. The first disadvantage is if you are a professional investor and you spend one or two hours researching which corporations to purchase and offload in your fantasy portfolio, and you do not win any prizes, then you have wasted a large amount of time. This time might have been used more sensibly making an attempt to grow your real-world portfolio instead.
Furthermore although these games can be educational for unskilled investors, they cannot ever recreate the real-world trading environment where you actually buy and shares with your own money. The perspective is completely different because when it’s your own money you are way more inclined to bank profits quickly and cut your losses as soon as achievable. Plus of course your technique will be different because with fantasy games you are typically hoping to buy the high-risk small-cap corporations so as to achieve enormous gains and hopefully win the competition. Here fundamental analysis will play a great part.
So they do not necessarily reflect real-world trading, but finally it’s down to you whether you want to spend your time entering these market competitions. I would certainly recommend them if you re totally new to investing and need to learn the ins and outs, but I would not always counsel you spend too much valuable time on them if you are a professional investor because your time could be used more wisely on your own portfolio.
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