Playing Stock Market Trading Educational Games
Stock market trading games can be of tremendous value to both students as well as novice investors. Stock trading educational games help students and others to focus on the skills necessary to come out on top in the world of speculative trading, and can also help teach math, critical thinking and research skills at the same time.
- Difficulty:
- Easy
Instructions
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1
Sign up for a stock market trading educational game online. While there are a few such games available off-line, the best games will be found online since online real-time games are the closest thing to the real stock market (see Resources below).
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2
Learn as much as you can about the fundamentals of one or more companies that interest you. Learn about their recent profits and losses, their market share (and whether it is increasing or decreasing), their management team, new products on the horizon and expectations for both short-term and long-term growth (see Resources below).
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3
Look at the Price Earnings ratio, also known as the stock's PE. PE is determined by diving the stock's current share price by its most recent earnings. A number under 10 may indicate that the stock is under-priced and ready to trade higher; a number of 20 or higher may indicate a stock that is over-priced and in danger of dropping in price (see Resources below).
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4
Make your choices and buy your stocks as part of the game. The game will keep track of your profits and loses. Don't rest on your laurels--look for more stocks to buy and sell. Keep researching and keep learning. After all, that's what the game is all about.
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5
Learn and develop trading skills such as setting profit stops (places to take profits) and stop-losses (places to sell at a loss in order to prevent further losses).
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6
Set a goal and see if you can reach it. A goal could be to earn a certain dollar amount or it could be to increase your trading account buy a certain percentage, such as doubling it over a given period of time. Be realistic and do not be discouraged by losses along the way.
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Tips & Warnings
While a stock trading game uses only virtual cash, keep in mind that stock trading is not for everyone. Never trade real money unless you can afford to lose it. Past performance is no guarantee of future results. Stock trading is speculative and can result in substantial losses.
