Play the Stock Market for Fun

As I said in my last post, if you’re just starting to get into the stock market “pretending to play the stock market online” is a great way to learn more about it. Some people think the stock market is just for wealthy people so they don’t even bother getting into “the game” or even trying it. If you have ever thought that way, then you should change your thinking to this: The stock market isn’t just for wealthy people… the stock market is HOW most wealthy people became wealthy in the first place! Even if you don’t have the money to start investing in stock you should go online and get familiar with the trading process (buying and selling). It’s a fun learning experience and by making a game of trading and being in the environment, you’ll definitely want to get into it for real.

Investing in stock and mutual funds is one of the quickest ways to get rich, but most people just think about it and say “some day I’ll invest” and they never end up really doing it. So, like I said, by making a fun game out of it, you learn and you’ll be one step closer to doing it for real. One thing to remember is not to get stressed while practicing… this is supposed to be fun! lol I know when I first started “playing” the stock market online, I started getting stressed when I had a good “find”… I worried that if I didn’t buy it right then and there I would miss out on the BIG ONE. But believe me when I say this… there will be ALWAYS be plenty of opportunities for you to find good deals whenever you play the stock market. (but if you do have the money now, then go for it!)

One commenter, Mark Berger, gave us a great site to use for this purpose. It’s  called the WallStreetSurvivor.com. I signed up for it, but haven’t gone any further yet as I’m busy with other things right now, but I will definitely go and try it out when I get the chance. They let you play with $50,000 and it looks like you can win money by playing the game, if you sign up before August 29th!

For starters, you need to become familiar and comfortable with the market. The more you keep on top of things, the better off you’ll be. I’ve owned a lot stock throughout my lifetime but most was given to me by relatives, or from inheritences. It was from online trading that I learned the most… and I’m still learning! One thing I’ve learned is that I am very good at choosing the stock that is right for me. A few times in my life I let a “professional” broker give me advice or tell me what stock to buy and I always did better with stock that I chose myself. One broker chose a bank that I had never heard of and within months my money was completely gone! The bank went “belly up”.  I let someone I didn’t even know talk me into buying something I would never have chosen myself. Like I said, I had never heard of the bank, and I really didn’t think it was a good idea… but I went along with his decision because he was a “professional” and I figured he knew better than I did. Now I know I could have chosen better stock than he did… with my eyes closed! lol

When I started playing around with online trading, I did a great job on my own and made some good money by choosing companies that I knew something about. Learning about the stock market and “pretending to play” online gives you confidence in your own intuition and instincts and that is very important when making money decisions. Once I started buying stock online for real, I had the confidence I needed and I made very good choices. I did not do any “day trading” and I wouldn’t get into that.. it’s too complicated and I think you end up paying too much in transaction fees and taxes, etc. (leave day trading to the ones who can devote their time and lives to it!). I also have never gotten into “Penny Stocks”.. per se.

They call stocks under $10 a share, “penny stocks” and they are considered risky. It’s usually when a company first goes public that it’s penny stock… or if a company is not doing well. Even though they call penny stock $10 and under, I don’t consider $10 to be penny stock. (I consider stock that is $5 or under, penny stock.) In fact, I’ve done best with stock that was in the $8-$20 (a share) range and they have all done very well… by tripling in price (or better). To me, it depends on who the company is. For instance, when I first started buying stock online, Apple Inc. was down to $12 and that could be considered penny stock because it’s very close to $10. But I knew that Apple was a good company and I felt good about it and I wanted it.

BUT… I’m sorry to say that I did not buy Apple at $12 a share. I was going to buy it, and my instincts told me I should buy it, but when I asked a couple “techie” friends they said “Apple hasn’t done anything good lately.”… of course, that was before they came out with the IPhone, so I missed out on a great deal. (don’t listen to friends! lol) It’s in the $170s right now and has been holding at $190 for quite a while. With the IPhone going to China and other countries it will continue to go up.  Even though I did well with the ones I chose, I am still mad about that Apple stock that got away! (and I never let my friends forget about it! lol)

So, I’m no expert, but I have done well with online trading and if I can make money with it… anyone can!  My advice is to always stick with your gut feelings when choosing stock and know the company you are buying stock in. Never put your life savings into it.  In fact, you shouldn’t put your life savings into any ONE thing! That being said, I think everyone should have some stock and they should get comfortable with the market. Mutual Funds are even better.. they are safer and you have potential to make even more money, especially if you keep putting a little money in every month.  (I plan to invest some of my blog earnings into stock.) As Suzie Orman says, most of us can afford to sock away an extra $10-20 a week just by saving loose change from our pockets. It all adds up and can turn into big bucks if you invest it.

Play around on the wallstreetsurvivor.com,  and let me know if you win anything!