Stock market simulation

There are a number of stock market simulation games that are extremely helpful, particularly for the beginner level investors. In a fun way, these games help the participants know and understand the various laws governing the market. Participants are able to understand better how the market functions. But probably most importantly, these games help infuse a sense of excitement and interest in the world of stocks.

This is how most of these games work.

• They can be played as individuals or groups.
• Every person/team is given an amount (virtual) to start with and their goal is to make that money grow to a defined amount.
• Every person/team starts with a portfolio of stocks.
• From time to time all participants get news items. Such news can be economic, political and even about natural disasters, which can have a bearing on the upward and downward swings in the stock prices.
• Based on these a player/players will have to take a buying or selling decision and thus end up making a profit or loss. This helps the participant understand the value of ‘market timing’.

Here are a few popular stock market simulation games

Global Stock Game: GSG is an extremely realistic game and it is 100% free. It is good for both seasoned investors and also those who are just starting off. You can play this as an individual or in a group.

WallStreet-Challenge: Each participant will start off with either 500,000 USD or 540,000 Euro or 350,000 GBP. They then trade stocks that are listed on the Dow Jones 30, NASDAQ 100 in the US, the FTSE 100 in London, the DAX 30 in Frankfurt and the CAC 40 in Paris. The stocks need to be managed for a period of 4 weeks. The winner is someone who has achieved the best daily or overall percentage performance.

Investopedia Simulator: Players start with $100,000 of virtual cash. They then need to build a portfolio with any stock that trades on a major North American exchange. There is even an online brokerage system and a tracking mechanism to find out what happened to your investments.