My iPad is loaded with Apps, not all of them “a very good use of my time” my mom says. However, one that does get parental approval is Stock Wars, and it happens to be one of my favorites.
Stock Wars is a virtual investment game. You are given $100, 000 to invest. You create your own portfolio by choosing stocks to invest in, and then buying and selling shares. Stock Wars is hooked up to the New York Stock Exchange and Nasdaq, so you get real-time stock quotes and market information.
The system keeps track of everything for you: it tells you how much money you’re making or losing, shows your asset allocation (how much of your portfolio is in stocks or cash), and ranks you against the other “traders” who are “investing” on Stock Wars.
I’ve been a “trader” on Stock Wars since November 2011. I love it. I think it’s a really great and fun way to learn about stocks. And, my portfolio is doing pretty well; it’s up 13.8% since I started trading.
Here’s what I own:
30 shares of Apple (AAPL) up 50.09%
20 shares of Annie’s (BNNY) down 8.12%
270 shares of Charm Communications (CHRM) up 5.76%
200 shares of Cisco (CSCO) up 11.43%
10 shares of 3D Systems (DDD) down 4.66%
70 shares of Disney (DIS) up 15.21%
40 shares of Forest Oil (FST) down 20.94%
270 shares of GameStop (GME) down 14.15%
50 shares of Google (GOOG) up 7.98%
50 shares of Netflix (NFLX) up 53.43%
70 shares of Starbucks (SBUX) up 15.09%
7,120 shares Sirius XM Radio (SIRI) 33.53%
I’m not sure what type of investor I am. I’m still trying to figure that one out. There are three basic types:
Growth Investing: This is when you look for stocks that are going to be big winners in the market. Maybe the company’s earnings are growing really fast, so you buy the stock hoping the stock price will grow even faster. This strategy is considered high risk with the possibility of high rewards.
Income Investing: This is a low-risk investment approach. Here you invest in companies that pay high stock dividends and hope that the dividends grow over time. For more info on dividends, please see my earlier blog A Piece of Apple Pie.
Value Investing: This is the case of the overlooked company. Maybe all the stocks in a particular sector are doing well except for one. You invest in this stock hoping it will catch up to it’s peers.
Stock Wars makes it fun to try to make the right investment decisions. And, it’s a lot more fun when you don’t have to risk real money. Let’s call it funny money.
Peace Love Profits,