- by Isha Adhikari
- 16th Nov 2020
The Growing Popularity of Playing Stock Market Game
What is the easiest way to learn stocks without losing a cent? Is there a manual for learning the stock market without diving much into just theory books? Can someone learn about the stock market as well as have some fun?
The easiest solution to all these questions is the popularity of the stock market games. What is a stock market game? Is it a free game or does it use real case? Is it safe? Will it lead to cash inflow? Is it real? There must be several questions marring your focus and hence this article will help you understand the stock market games easier.
Virtual stock market games are simple, easy-to-use programs that imitate the real-life workings of the equities markets. Most stock market games give users $100,000 in pretend money to start. From there, players pick to purchase; most of the stocks are those that are available on the New York Stock Exchange (NYSE), Nasdaq, and the American Stock Exchange (AMEX).
Most online stock simulators try to match real-life circumstances and actual performance as much as possible. Many even charge broker fees and commissions. These charges can significantly affect an investor's bottom line, and including these in simulated trading helps users learn to factor these costs in when making purchasing decisions. Along the way, they’ll also learn the basics of finance and learn the basic terminology of investing, such as momentum trading, shorts and P/E ratios.
Stock market games are often used for educational purposes to teach potential stock traders and future stock brokers how to trade stocks. Stock market games can also be used for entertainment purposes and to engage in fantasy trading competitions.
Some stock market games are not based on financial markets at all. These virtual stock markets are often based on things like sports or entertainment 'stocks'. Players are asked to invest in a particular sports team for example. If the team is doing well, the stock goes up and if the team is playing badly the stock value for that team falls. Stock market games are often built into many other prediction games.
Due to the growing popularity of these games, everyone who is interested in business wants to know how to play these stock games. Wouldn't it better to try your luck at the virtual stock market before heading into the real stocks?
The basic rule of playing a stock market game is to buy stocks at a low price when the market is down and sell them at high prices where the market is going upward. You should keep track of your shares and the company you are investing in. A company with a better financial status would have higher shares. It is not an easy game but a profitable one where you can extract profits only when you are calculative and cautious.
