I hope the following will help to answer some of your stock market game questions, and if you do need any further help on your trading strategies, please have a look at some of my other sites which are listed alongside. Remember all the information on my sites is provided free for you, so please do have a look a them and I hope you find them useful.

Trading using the stock market simulation game is very easy. To make a trade on the stock market game, you have to know the ticker symbol of the stock you want to trade and the number of shares you want to buy. If you don’t know the ticker symbol, click on the “Quotes/Research” link on the top horizontal navigation bar and then on “Symbol Lookup”” and enter the company name. The ticker symbol is the company’s one-to -five character abbreviation. Click on the ticker symbol of the company in which you’re interested, and you will see the latest price. You can then decide how many stocks you want to buy. For example, if you’re interested in a $20 stock and want to invest $10,000, you would have to buy 500 shares. Once you have the both ticker symbol and number of stocks or shares, click on the “Make A Trade” link. On the Stock Order Screen, indicate whether you’re buying or selling, input the ticker symbol and number of shares click on the “Preview Trade” button. When the Trade Preview screen appears, you’ll be prompted to either “confirm” or “cancel” that trade.

The stock market game supports four types of order, namely market orders, limit orders, stop orders and open orders. A market order is an order to buy or sell a specified number of shares (or bonds, etc. ) at the best available price when the order is submitted. All orders that don’t bear a specific price are considered market orders. A limit order is an order in which a specific price is set to buy or sell a security. If the price point is hit and there is sufficient volume at that price point or better, your order will be filled.  A stop order is an order to buy or sell a stock when the stock price reaches a specified price, which is known as a stop price. When the specified price is reached, the stop order becomes a market order.

  • A Sell Stop Order is used by investors and traders long a stock to protect an existing profit or avoid further losses if the stock price drops. A stop order to sell must be placed below the current market price.
  • A Buy Stop Order is used by investors and traders short a stock to protect a profit or limit a loss if the stock price increases. A stop order to buy must be entered at a price above the current market price.
  • An open order, which remains current until it is executed, is an order to buy or sell a security at a specified price. Open orders are usually submitted within a specified time frame (e.g. , 30 days).

You can of course sell short on the stock market  game, but shorting stocks is a little more difficult to understand. Everyone knows that to make money in the stock market all you have to do is buy low and sell high. However you can also make money when prices are falling by selling high and buying low. By shorting a stock you are actually borrowing the shares from your broker and selling them, but then at some point you must buy them back and return the shares to you broker to pay off the loan. So if you are short a stock, you are hoping that the stock loses value after you’ve shorted it. Let me give you an example as follows :- Suppose a stock is trading at $30 and you think it will decrease in value in the next few days or weeks and decide to sell or ‘short’ the stock. The stock subsequently falls to $25 and you then buy it back, having made a profit of $5. So your opening order would be a sell order. In order to close a short position you will need to place a trade called a cover trade. Covering a short sell is how you close out your short position. The ‘Cover’ option is in the ‘Order Type’ pull down box. So in the example above to take your profit, instead of selecting the sell order type you will want to use the ‘Cover’ order type.

Every company listed on a public exchange has a ticker symbol, which is a 1 to 5 letter code for each publicly traded stock. To look up a ticker symbol, click on the SYMBOL LOOKUP link on the trading page and enter the company name. If the company is publicly traded it should be found. If the company is not found, then it is probably not a company that trades publicly. For example, Google’s ticker symbol is ‘GOOG’ and The Coca-Cola Company’s ticker symbol is ‘KO’.

The stock market game provides a full research centre for both technical and fundamental traders.  Fundamental traders determine a stock’s value through the analysis of the quality of management, financial data, the industry in which the company operates, their competition and other factors that are ‘fundamental’ to the company’s operations. Such an analysis excludes the equity market’s overall condition, market psychology and behavioral variables or the market’s technical analysis.