COMMUNITY TRADES:

WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

Last post 05-09-2008 11:01 AM by golf1962. 5 replies.
Page 1 of 1 (6 items)
Sort Posts: Previous Next
  • 05-08-2008 4:30 PM

    WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    I AM A NEW TRADER , DOING GOOD CURRENTLY BUT SURE THAT WILL CHANGE.

    WHAT IS THE DIFFERENCE BETWEEN HOW WE TRADE HERE AND IN THE REAL WORLD.

    DO STOCKS GET TRADED QUICKLY?

    HOW DO SHORTS WORK?

    THANKS

  • 05-08-2008 4:37 PM In reply to

    Re: WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    much better than this game is doing now ! but in the real world of finance everything works good providing you the money & the patience to wait for a good opportunity and to execute properly the trades you like ,,and to sell when the hit your mark !
  • 05-08-2008 5:51 PM In reply to

    Re: WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    there are little differences here and there and they depend on your broker. with penny stocks (anything under $1) you will get charged extra per share of each share you buy; for scottrade its half the price of the stock extra so... $0.50 stock will cost $0.75 per share). margin accounts are only given to accounts that have more than $2000 in the account and have an interest rate to them just like in wss. when buying and selling a stock there is a settlement date in which you have to wait (3days for scottrade) in order for those funds to be usable again. so you cant buy a stock one day, sell it the next, and then the same day buy another stock. you will be considered a daytrader and by market rules a daytrader must have at least $25000 in your account or else you will be flagged and penalized.

    stocks do get traded quickly depending on the stock (average volume per day). with stocks like google, walmart, disney, altria, monsanto, etc. prices fluctuate quickly (pretty much on a per second basis). and it is very hard sometimes to get your exact stop/limit order because of this. there is also the spread that you have to worry about (the difference between ask/bid).

    shorts work in the opposite way buying a regular stock does. you "borrow" 'x' amount of shares from your broker at the designated price. so 100 shares of stock XYZ at $10. you then hope for the stock to go down and buy to cover your position at a lower price making you a profit; if the stock goes up then you lose money. in order to do this one must be eligible and have a margin account. 

    im pretty sure i left out A LOT of stuff but thats all that comes to mind. if you have any more specific questions i'd be glad to answer them to the best of my ability 

  • 05-09-2008 8:55 AM In reply to

    Re: WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    Diff. is you will take more chances here...less in real world!

  • 05-09-2008 9:21 AM In reply to

    Re: WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    I have to agree there is no risk here so you make better choices faster. 

  • 05-09-2008 11:01 AM In reply to

    Re: WHAT IS DIFFERENCE BETWEEN GAME AND REAL WORLD

    THANKS

Page 1 of 1 (6 items)