How to Invest in the Virtual Stock Exchange

A virtual stock exchange is to investing as fantasy football is to real football. It is an on-line simulation stock trading game that allows you to pretend to invest in real stocks. You are often in a league with other fantasy investors. Your virtual portfolios rises and falls as the real stocks gain and lose. The winner is the one who makes the most virtual money. It can also be used as a tool to test different investing techniques or gain trading experience without risking real money. Read on to learn how to invest in the virtual stock exchange.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer with Internet connection

1. There are many popular websites offering Virtual Stock Exchange games. VSE Marketwatch is a division of the Wall Street Journal. Investing Experience offers a game geared toward people who want practice as day traders. Others include Wall Street Survivor, Stocktrak and Simulator Investopedia. If you want a virtual stock exchange with international stocks try Stocks Quest or The Great Game.
2. Joining a virtual stock exchange is simple. Most games are free. Some offer prizes for winners. All you have to do is sign up and create an account. How you want to play is up to you. You can choose which stock exchanges to use (NYSE, Nasdaq or AMEX). You can pick stocks or mutual funds. You can join public games or compete against your friends in a private game.
3. Depending on the virtual stock exchange you join, you are either given a set amount of virtual cash to invest or determine your starting point yourself. After that it is up to you what you want to do with it. You can be aggressive and put it all in small cap growth stocks or diversify with a mix of investments. If it is available in the real financial world you can invest in it in the virtual world. You can also play with other options like the ending point of the game, trading limits and margin accounts.
4. Maintaining your virtual stock portfolio is just like watching a real portfolio. Game hosts usually provide market research and sometimes real time stock quotes. Since the game follows the results of real stock markets, you can follow your progress with any financial software, website or TV broadcast. Rankings in the game constantly change. Many virtual stock markets allow you to monitor your relative standing versus other players in real time.
5. What is good about the virtual stock exchange is also what is bad about it. If you lose big on the virtual stock exchange you haven’t lost any money. Of course if you win big you haven’t gained a cent either.

Tips & Warnings

• Real brokers often host or advertise on virtual stock exchange games as a way to lure you into real investing. This is fine if you are willing and educated about what you are getting into. Remember, when you use real money you can lose real money.