Stock Market Games – The Pros and Cons


Nowadays, there are many free games on the stock market that you can play online. Some are managed by individual stock trading companies to encourage you to open an account with them later, while others are independently managed. What are the advantages and disadvantages of these stock market competitions? Is it worth joining or are they just a waste of time?

Let's start with the benefits first. The most important thing is that if you are a newcomer to the whole field of stock market investments, then by participating in these games you will learn to buy and sell stocks, even if it is just pretending.

In addition, by buying stocks in a fictitious portfolio, you will begin to find out how stock prices actually change and how they are influenced both by company-specific news and by the stock market in general. We also hope that you will learn the importance of timing and why you should cut your losses early to avoid losing substantial sums.

Another advantage of these fantastic stock trading games is that there are sometimes decent prizes to be won. So if you are an experienced investor, you can use all your experience to try to win the competition and win the best prizes.

So there are several reasons why you should consider participating in some of these competitions, but they also have their drawbacks. The first drawback is that if you are an experienced investor and you spend several hours researching the companies to buy and sell in your fantastic portfolio and you win no prize, you have wasted a lot of time. It would have been better to spend this time trying to develop your real portfolio.

Plus, while these games can be educational for inexperienced investors, they can never recreate the real trading environment where you buy and share stocks with your own money. The mindset is completely different because when it is your own money, you are more inclined to make bank profits quickly and reduce your losses as soon as possible. Also, of course, your strategy will be different, because with fantastic games, you are usually looking to buy high-risk, small-cap companies in order to make huge gains and hopefully win the competition.

They therefore do not necessarily reflect actual transactions, but in the end, it is up to you to decide whether you want to spend your time participating in these stock market competitions. I would definitely recommend them if you are completely new to investing and want to learn the tricks of the trade, but I would not necessarily recommend spending too much time on these if you are an experienced investor, as your time could be better spent on your own portfolio. .

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