Easy stock market trading
Post #1

27/05/2011 17:30:06
(609 weeks ago)
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Posts: 24
The stock market is way down and this has prompted a lot of people who know nothing about stocks to want to learn about the market and get involved. They are thinking this might end up being an investment opportunity of a lifetime but they don't know where to go to learn about stocks.

Now there is a fantasy stock trading game for all those who want to get involved and learn the ropes and terminology without the risk. Wall Street Survivor is the best stock trading simulation game out there and the good news is that it is absolutely FREE! This game and site is meant for beginners and people who want to learn about the stock market and how to trade online.

I signed up (takes less than a minute) to see what it was all about and let me tell you , there is a lot going on at this stock simulator game including weekly and monthly contests where you can win prizes. First of all, you make buy and sell stock trades just like you would on any other real stock site platform. So, when you learn how to make the trades at Wall Street Survivor, you have learned how you would do it at a real online broker for real money.

The amount of material that is available for FREE is amazing. They have training videos, tutorials, a massive forum, contests which everybody is automatically entered in, a research section, and much more. Once you sign up you will quickly realize there is no shortage of things to do on Wall Street Survivor and things to learn.

Initially, you are given $100,000 to start out in virtual cash which you use to build up your very own stock portfolio. You can buy and sell stock (with your fantasy dollars) at the real prices of the stocks as they go up and down during the day. Just like in real life, you can learn how to short sell, set stop limit orders, put in orders after hours and just about anything you can do at a real online broker you can do here. You will be managing your very own stock portfolio through simulated trades that are executed on a real-time stock trading platform. As you can see below I am up a little from my starting amount of $100,000.

Wall Street Survivor is a very cool FREE site where you can learn how to invest and manage your own stock portfolio without any of the risk. So, once you feel comfortable with how the market works and how to do some research, you can sign up with a real online broker and jump right in. If you want to know what the market is like and what it would be like to have your very own portfolio of stocks that you can trade, this free stock simulation game is a no brainer. Sign up for Wall Street Survivor today and give it a spin.

The Dow and Nasdaq are two indexes that track the progress of the stock market and they are the two that are most often quoted. When you watch the business news every night, read the newspaper in the morning, or watch any business show on television during the day, those two averages are the ones that you will see prominently displayed.

The Dow Jone Industrial Average is comprised of 30 stocks that are thought to be a representative sample of the market in general. It is an average of those 30 stocks which are all large established United States companies. In other words, if the Dow goes down on any one day, chances are that the stocks you own will also have gone down. I have included a graph of the DJIA since about 1983 below:

The Nasdaq Composite is a different index that includes companies from all over the world. The NASDAQ is an average of all the stocks in the index and they are often more growth oriented than the stocks on the Dow. The NASDAQ has many more technology companies, Internet companies, and companies that are in new industries than the Dow does which is why it's graph looks somewhat different over the same time period:

The biggest difference between these two historical graphs of the Dow and NASDAQ is seen between the years of 1999 and 2002. That was the time period known as the Dot Com Bubble when all the enthusiasm for Internet companies quickly changed from euphoria to pessimism and people were rushing to sell their Internet stocks.

The NASDAQ had climbed to over 5000 and you can see that it was going straight up at one point, a trajectory that spelled doom because of too much enthusiastic buying. When things crashed, they REALLY crashed for all the Internet companies and since the NASDAQ had a much higher percentage of such businesses, you can see the big difference between the two charts. While the Dow did go down, it didn't go down nearly as much because it had many more companies that were in "traditional" industries.

If you take out the 1999 to 2002 period, the charts of the two indexes look a lot alike but technology stocks seem to be getting hot again. There is a lot of enthusiasm for Internet companies right now and stocks that come to mind are Netflix and Apple as well as all the IPO talk from Groupon, LinkedIn, and Facebook. Heck, they are even talking about doing an IPO for the company that makes Angry Birds (Rovio Mobile)!

The NASDAQ has climbed back up to reach it's highest point since the Dot Com Bubble and you have to wonder whether people are valuing these Internet companies too highly. Things change quickly on the Internet and while these companies may be doing well now, it hardly guarantees the kind of success people are hoping for in the future.