• by Garima Mohta
• 17th Sep 2020

Tips To Earn Money Faster By Playing Online Stock Market Games

Best way to earn in the stock market is trading after doing a proper analysis of stocks. Basically,

there are two types of personalities who play the stock market. One type includes people like

Warren Buffett who does fundamental investing. Other types are speculators like famous

Harshad Mehta.

The main difference between fundamental investor and speculator is how they see ‘stock price’.

Fundamental investor gives less importance to stock price than speculators. For speculators,

the stock price is everything about investing in stocks.

Some tips for beginners to earn faster are as follows:

1. Be fully aware of the game you're playing in the stock market:

Winning the stock market game is possible but not how most investors go about it. Some

investors realise returns far below the general market. Data for the ten years through 2013 show

that the average investor earned an annual return of just 2.6% compared to a return of 7.4% for

stocks and 4.6% for bonds.

2. Professional's stock market game: The professionals’ stock market game is about taking risks

to beat your comparison index since they are measured against the rest of the managers in their

investing style. Data from 2012 mutual fund performance shows that just 39% of professional

fund managers beat their index while the average fund return actually trailed the stock market

(S&P 500) by a per cent after fees. Anyone can make money when stocks are rising. It’s the

crash-proof portfolio that will keep you from losing your hard-earned returns.

3. Be a winner through diversification:

The most important amateur’s trick to winning the stock market game is diversification. To have

a mix of investments that react differently to the economy and the stock market. Bonds and

stocks rise and fall differently because bonds are a contract for fixed payments while stocks are

only an ownership stake in potential profits. Diversifying your investments means investing in

more than just stocks and bonds. No other investment has created as much family wealth as

real estate and the property is great for protecting your portfolio. No matter what the economy

does, your investments will make a smooth path higher.

4. Keep minimum investing fees:

Mutual funds charge an average of 1.4% a year to pay their managers and overhead cost.

Fidelity reports the average investor on its investment platform makes 77 trades a year. That

could cost you upwards of $770 a year in fees even on the cheapest discount brokers. Don't sell

your stocks rather invest in companies with products that people love and that will be around

forever, and then hold the investment until you need the money in retirement. You’ll save on

fees and will avoid a lot of the bad investing habits that lose money.

5. Amateurs to avoid using margins:

Margin is basically a loan your broker gives you to buy more stocks than you can afford. You’ll

pay interest on the borrowed money but can increase your return as long as your investments

pay off.

Lose 10% on your $5,000 portfolio and you are only down $500. Lose 10% on that same

portfolio margined to $10,000 and you’ll lose more than $1,000 with interest. Investing on

margin can be extremely tempting and one of the fastest ways to lose your money.