Fantasy Stock Markets
Fantasy Stock Market Games
Navigating stock exchange can be confusing, especially for beginning investors. One valuable tool you can use to hone your skills is a fantasy stock market game. These fantasy stock markets can educate you in how the stock markets work and which investments might be better for you. And the best part is that you donít have to risk anything in order to do it.
What Are Fantasy Stock Market Games?
In fantasy stock market games, players invest fake money into virtual stocks, bonds, and mutual funds. Each game lasts for a set time period and at the end of the game, the player with the stocks that have been the most successful financially wins the game.
Players compete with each other to produce the best portfolio You get to match wits against your opponents to see who can predict the marketís highs and lows. Most of fantasy stock market games are real-time, so you can watch how the actual market reacts.
Fantasy stock market games reproduce how the real stock market works. Their function is to either entertain or teach investors the best way to invest their money without risking it. Too many people try to play the market without understanding it. By participating in these simulated games, players save their finances until they are ready for the real thing.
Types of Fantasy Stock Market Games
Not all fantasy stock market games are based on the financial markets. Some are geared more towards the investment values of sports and entertainment. For example, in a game of fantasy stock football, players invest fake money in real football teams. As the teams do well, you earn money. If the team does poorly, you lose money. Other stocks entertainment games follow the same concept.
The Hollywood Stock Exchange is a fantasy stock market game where you invest in upcoming films.
Why Play Fantasy Stock Market Games?
Fantasy stock market games have many advantages, most of which are easily understood. First of all, to appreciate them, you need to know what you risk every time you play the market.
When you play the stock market, you are taking a large amount of your own money and investing it in something that is not a sure thing. Predicting the stock market is like predicting the weather. You can make educated guesses as to what will happen, but you never really know. If you invest money into company stocks and then that company has a bad financial turn (or even goes bankrupt), then the shares decrease in value. This means that you have just lost money.
By playing stock market games, you can use fake money to learn the market or to test theories on how the market will evolve. This gives you several advantages:
- You get to purchase and trade in stocks without any risk financially
- You donít have to worry about paying commissions or keeping account minimums
- It doesnít cost anything to play
- Some fantasy stock market games give out cash prizes to the winners
- If your stocks do poorly, you do not lose any money
- If you have never played the stock market before, it acts as a great training course
How Do Fantasy Stock Market Games Work?
Fantasy stock market games can be divided into two separate categories: financial market games and fantasy market games. Here are the differences in each:
Financial Market Games
In the financial market games, players create a portfolio using fake money. They play a virtual version of real-time markets but without investing in anything real. Used both for educational and entertainment purposes. To prevent insider trading or to be used on other systems, the virtual feeds have a delay time of fifteen to twenty minutes.
Fantasy Market Games
With fantasy market games, players trade shares of items that would not normally be found on the stock exchange. These items are things found in the real world such as sports teams, movies, and celebrities. Practically anything in popular media that has its ups and downs could be used.
Whichever type of fantasy stock market game you play, the rules are similar. Most games start you off with anywhere between $25,000 to $100,000 to invest. There is often a limit on how much you can invest in just one stock. Depending on how well your stocks do, you will be ranked against other members of the site. Most games run for a few months before a winner is declared. Winners can receive titles, cash prizes, or investment tool kits.
Tips & Tricks
When playing fantasy stock market games, there are some tips and tricks that you can use to your advantage. The first is to treat the virtual money as if it is real and it is your own. This will help prevent you from taking careless risks.
Next is to watch the stock market for opportunities. Pay close attention to stocks that you might be interested in investing to see how well they perform.
Another thing you can do to make the game more interesting is to start up a virtual trading group. Based on real-life trading groups, you and your partners can pool your money (fake, of course) together to make larger investments.
Realize that you will probably lose money some of the time. That is just the nature of predicting the stock exchange and you canít win them all. Plan ahead and learn that minimize your risks where you can.