How Stock Market Games Can Teach Investing

Want to learn how to invest in the stock market without losing money? Stock market games are a great way to practice whether you are a beginning investor or investing for awhile. These games are an example of learning by doing, also known as experiential learning and practical learning tools.

Investing can be daunting for experienced investors, let alone for those who are just starting. On the other hand, virtual games that can ease your entry are free, fun, readily available, and user-friendly. They offer participants a faster learning curve to build investment skills and better financial habits.

Games are a fun and educational way to learn to invest, a pivotal way to accumulate wealth. There is a greater level of engagement and motivation when you are learning a skill through simulation. Players can quickly fill and modify their portfolios by buying and selling stocks with ease.

Why Use A Simulated Game For Investing? 1. Active Learning Of Investing Basics

2. Diversifying Portfolios Reduces Risk And Growth

When building a portfolio, you may favor a mix of growth stocks, value stocks, stocks with above-average dividend yields in different industries. Virtual investors can become attuned to market information that may affect one stock or particular group more than others.

3. Macro Factors Investors Need To Know

Beginning investors need to understand external or macroeconomic factors that may impact the market. Players should be reading relevant financial news to learn about important events that can sway the market significantly. Learn what makes the market tick.

4. Leftovers Provide Benefits

Sometimes, leftovers, specially marinated recipes, taste better the next day. I view leftovers as extra portions after purposefully making more to freeze or have the next day or so. Having leftovers save time and money at the grocery store, in the kitchen, and searching for a new recipe. Certain foods are better (lean proteins, vegetables) the next day than other foods.

Popular Simulated Stock Market Games

1. Marketwatch Virtual Stock Exchange MarketWatch is a top financial and news website owned by Dow Jones. The Virtual Stock Exchange game can be customized by an administrator such as a parent or teacher providing $100,000 or $1,000,000 in private or public mode. The game provides rankings for each player.

2. The Stock Market Game

Although geared for teachers and students, anyone can participate in The Stock Market Game individually or as a team, including a family. Participants can trade their own $100,000 investment portfolio. The portfolios can be a mix of stocks, bonds, mutual funds, and cash.

3. Wall Street Survivor

You can start with anywhere from $10,000 to $10 million in virtual money. There is the option to join a public or private league or create your own league. This site is resource-rich and provides courses, videos, newsletters, starter guides, and articles.

If you are new to investing, stock market games are a great way to gain experience in a simulated setting without the risk of losing your own money. You can create portfolios, learn concepts and build confidence along the way. The games have enhanced the investing capabilities of my college students, many of whom are now active investors on their own. It is my passion to teach students how to invest.

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