ALL ABOUT STOCK MARKET

ALL ABOUT STOCK MARKET
BY: SCOTT MORRIS
a stock market simulation game is a great way to
practice your investment skills before actually
INVESTING ANY "REAL" MONEY IN THE STOCK MARKET.

simulation games are usually played on the
INTERNET, WHERE PEOPLE CAN EXPERIENCE THE THRILL
of investing in the stock market without any
risks, costs or any fear of losing money when
AND IF THEY MAKE A POOR INVESTMENT DECISION.

many teachers and professors of banking and
FINANCE ARE NOW USING STOCK MARKET SIMULATION
games to teach their students about the
rudiments of investing in stocks. most stock
MARKET SIMULATION GAMES COME WITH A FEE TO GET
started, but there are some that are free of any
charge. one does not need have prior knowledge
ABOUT THE STOCK MARKET TO JOIN.

this is how stock market simulation games
USUALLY WORK:

first, players must register. after
REGISTRATION, PLAYERS ARE GIVEN AN INITIAL SUM
of "virtual" money to invest in companies of
their choice. players build a portfolio of
STOCKS BY BUYING AND SELLING SHARES IN
companies. most stock market simulation games
use real-time market data.

the objective of most stock market simulation
games is simple:

to increase the value of your portfolio of
stocks so that it is greater than that of the
OTHER GAME PLAYERS.

below are some tips on choosing a stock market
SIMULATION GAME:

· choose a stock market simulation game that is
USED AND RECOMMENDED BY REPUTABLE COLLEGES, HIGH
schools, middle school, investment clubs,
brokers in training, corporate education courses
AND ANY OTHER GROUP OF INDIVIDUALS STUDYING
markets in the u.s. and worldwide.

· CHOOSE A STOCK MARKET SIMULATION GAME THAT IS
comprehensive and easy to implement in any
finance, economics, or investments class. a good
STOCK MARKET SIMULATION GAME SHOULD FEATURE
trading of stocks, options, futures, mutual
funds, bonds from the u.s. and many of the
WORLD'S MAJOR MARKETS.

· choose a stock market simulation game that
PROVIDES A VALUABLE, RELIABLE, AND REALISTIC
trading simulation at a reasonable price to
members and other individuals who are interested
IN LEARNING MORE ABOUT INVESTING AND TRADING.
the simulation game should also have some
capability for testing a variety for investment
STRATEGIES.

· choose a stock market simulation game that has
A TOLL-FREE CUSTOMER SERVICE PHONE NUMBER AND
excellent e-mail support for members. the
support function should be able to quickly
ANSWER ANY QUESTIONS THAT MEMBERS/PLAYERS MAY
have.

· CHOOSE A STOCK MARKET SIMULATION GAME THAT IS
easy to use and easy to teach even to those who
have never had any real hands-on investment
EXPERIENCE.

about the author:
MORRIS GATHERS INFORMATION ABOUT SIMPLE TRADING
systemsimple trading system [2].

circulated by article emporium [3]
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How Many ES or YM Emini Contracts Should I Trade by David Adams

There are a variety of answers to this question, but the simplest answer is to never risk more than 5-10% of your account on a given trade. I enjoy watching YouTube videos where the traders are trading hundreds of contracts at a time, and the videos always show them making a great return on a one or two point move. Oddly enough, the videos of these high rollers never show them getting blown out of the bottom side of a trade. I have to assume that they ALWAYS pick winning trades since those are the one type of trades they publish.
And that is the silly thing about videos showing traders making $10000 a trade. In my world, you would need about a 2 million dollar account to risk that sort of capital on a single trade. Now there are plenty of traders out there with far more capital than two million, but they aren't posting their trades on YouTube. Why would they?

For the average trader, you can make a great living on the ES emini contract only trading one contract. I sometimes trade as high as ten, but generally I trade one or two contract and feel I am managing my money efficiently. I suppose I am more of a singles hitter than one to try to hit a home run. I am very content to consistently make 500-1000 dollars a day with relatively little drawdown. In fact, I generally only risk 2% or so of my capital on a given trade, especially during volatile sessions.

And that is a funny thing about paper trading on a demo account. I see paper traders entering order of ten or fifteen contracts and being amazed at the amount of money they can earn trading at that level. It is my belief that you should paper trade just about the way you plan to trade a real account. One or two contracts is a nice place to start on the ES Emini contract, and 2 or 3 contracts is a nice place to start on the YM contract. Why influence your thinking on paper when correct money management technique dictates you trade lower amounts in a live trading account?

So practice sound money management and don't overtrade and don't overload your risk tolerance with excessive numbers of contracts. Paper trade the way you plan to actually plan to trade. Practice doesn't make perfect, perfect practice makes perfect.



About the Author
I write mainly about financial topics, specifically daytrading the emini contract, and many of my more technical techniques can be found at my blog, The Fractal Futures Trader.

I also write an ongoing commentary, which is a bit more opinionated