Online Virtual Stock Trading – A Beginners Guide Part III

July 12th, 2008

An online stock market game is something that will teach you how to play in the real stock market.  There are many rules to putting money into stocks that you should really know before you start risking your hard earned cash.  Places such as Yalicoo that have stock market competition and the stock trading game can help teach you the benefits of playing in a virtual stock market.

Virtual trading will look as real as the true stock market.  It is designed to give you the latest news, updates, quotes, and graphs of the stock market without you investing your money.  With Yalicoo you even have stock trading competition to try your skills against others who are learning just like you.  The first thing you should know about online virtual stock trading is that you should be having fun while learning something.

Your stock market game will begin with 100,000 dollars for you to invest in stocks.  The stocks you choose need to be based on the qualifications rather than your gut.  In other words you need to research the stocks carefully to understand how they are expected to move and what the risk is in them.  You get to choose what stocks you buy or sell based on the real time price, but you still need to know what you are choosing.  The stock market competition can help you learn which stocks to choose.  You are playing against others to make the most profitable portfolio and the top winners get cash prizes.

Once a stock has been researched you are not through with the stock trading game.  In fact you have just begun.  Even in the virtual trading you need to have a well rounded portfolio.  This means that you have four to ten stocks in a variety of industries.  There should be one stock in an industry in your portfolio.  You don’t want to have a portfolio that plays off of each other even in a stock trading competition.  For example if you have an energy stock you don’t want to buy the competitive companies stock.  You are going to lose in that type of situation.  The same can be said for trains, which are really hot buys right now.  You don’t want to have the 3 train stocks available on the US market.  One will go down and the other up and keep you in a stalemate.

The virtual stock market should be followed just like it was a real portfolio.  In this we mean you will need to sell a stock if the news is bad and the numbers begin to reflect the downturn.  You want to sell when the stock reaches the peak, not once it has already fallen and is too late.  In this case you would be losing money again.

Since you are trying to earn money in the market you need to watch the virtual trading every day.  You need to listen to the news and see what could happen to your stock.  Trust that your knowledge as you delve further into the game will teach you when to sell or hold.  You don’t want to panic either and sell too soon.  By learning the trends of the stocks you are interested in before buying you should be able to pick some great stocks.

Last 5 posts by David Maxwell

• Dow Jones Sinks 514 Points While Dollar Reaches 2-Year High - October 28th, 2008
• $700 billion Bailout Bill Approved by Congress - October 8th, 2008
• The Pros and Cons of Online Trading - September 23rd, 2008
• Play the Market—Enjoy Virtual Stock Trading - August 13th, 2008
• Leave Wall Street behind and go Virtual… - August 3rd, 2008

Entry Filed under: Stock Trading Investing Basics