Can You Make $500+ a Day in Stocks Without Trading?
Do you think that making $500 or more per day on the stock market is impossible? Fantasy stocks prove different.
Yes, you can win handsome rewards playing fantasy stock while tracking popular stocks using real-world stock data. Still, you need to be careful to avoid pitfalls.
Let’s explore how to improve your trading in real-time using fantasy finance contests and avoid financial trouble.
Fantasy finance
In general, trading is too risky, expensive, and time-consuming. That is
where another type of game comes in. The one that rewards you with exciting prizes for having fun and honing your trading skills.
Inspired by fantasy sports, fantasy is the gamification of stock trading. It is an excellent tool to practice and experience the stock market in real-time with no financial risk.
Practicing stock trading with no risk
You can learn the classical way or via internet resources and mentors. Despite those options, stock traders find simulations dull, video and text lessons too far away from reality. All that matters, in the end, is practice.
Instead of following experts that are not always right, fantasy stock gives stock players a unique opportunity to practice at their own pace — in real-time. Another sweetener is you can make some excellent profits in rewards as you speculate on the future prices of real stocks but in a virtual world.
The link between fantasy stock and fantasy sports
A 2018 survey conducted by OppLoans revealed 96.6% of fantasy football players admitted to spending 6.9 hours of their weekly productive time managing their fantasy team. Spending close to that every week trading stocks for fun and reward will improve your investment skills and decision-making on the best stocks to pick without charts and graphs.
Fantasy stock is entertaining. But most importantly, you have an opportunity of winning some tokens as real money is offered as prizes with every game. Looking deeply, you are bound to see parallels between managing a fantasy team and building a profitable stock portfolio.
Stock market lessons from fantasy stocks
Speculating on value: Sometimes, in fantasy football, most points are earned from low-valued and emerging quarterbacks with the right metrics and backed with the proper fundamentals. Same way, every average investor knows value investing is a great strategy. Depending on the metrics used, the logic is to get a good deal at a low price to sell high.
Diversification is the game: it will be a faux pas for a fantasy football manager to focus all his resources on drafting players in the same defense set up or from the same team. Likewise, a seasoned investor should have a fair number of first-pick stocks like Amazon, Alpha, Facebook, etc. And consider sleeper stocks for defense and a consumer products company like Apple as a quarterback for an overall excellent price-to-earnings ratio. And the inspiration from fantasy sports for investors goes on and on.
The head matters: Having an offensive genius like Sean McVay guaranteed a quarterback in the mold of Mathew Stanford is bound to earn fantasy managers good points. For stock investors, that can be likened to buying a company’s stock under the leadership of an innovative and intelligent CEO.
Taking chances on the proper fundamentals: Great players go through hard times too. As a football manager, you can bet on them getting back their grooves at a way lower price, not saying to buy a stock nose-diving. But betting on stocks is lacking in value but has proven metrics and fundamentals.
The process of trading fantasy stocks
The mechanism of fantasy stock is not much different from fantasy football and other simulation games. Anyone wanting to improve their investment skill is not short of options. StockBattle and other fantasy trading platforms blazing the trail are easy to use and navigate.
After completing your registration, all it takes to start trading is a minimal entry fee, some are even lower than $1. Unlike other games of skills, stock market contests are designed not to be time-consuming. Taking StockBattle, for instance, you have the freedom of selecting from 15and 60 minute game times. Then you can go ahead and enter your preferred stock markets.
Fantasy finance beyond stocks
Fantasy stock is available in different stock exchanges. Popular ones are New York Stock Exchange (NYSE) and NASDAQ. Those that deal with cryptocurrency will find trading coins on fantasy finances equally thrilling and profitable. Besides the BTC, crypto traders can choose to trade from Tron ($TRX), Bitcoin Cash ($BCH), Dogecoin ($DOGE), Ethereum ($ETH), and other altcoins. Regardless of whether you chose to trade stocks or crypto, you have a shot at winning awesome prizes and cash out daily from fantasy stocks.
Trading vs fantasy pitfalls
Fantasy stock is a predictive game proving to be a faster way to develop your trading skills than traditional trading. And it doesn’t require a deep fundamental and technical approach.
However, approaching the stock market with such a sentimental mindset is a recipe for financial disaster. You can afford to get emotional and have favorite stocks. But in the stock market, you just don’t. Falling in love with a company will blind you to change in fundamentals or warning signs.
Also, the winning objective in trading virtual stocks is immediate. Yes, you can win a lot in no time competing against other fantasy stock managers. Winning in traditional stocks takes longer research and is influenced by starting points, experience, risk tolerance, and several other factors.
Pitfalls to watch for when trading in the stock market and fantasy stocks
Mistakes in the stock market and even fantasy games too can have some serious financial consequences. Here are a few of the important ones to avoid.
Not letting go of losing position
Wrong decisions are inevitable. However, experienced investors do not let bad investments ruin or eat deep into their financial position. You don’t need to worry about all of that; fantasy games are pretty short and outcomes are unconnected.
Biting more than you can chew
As tempting as it is to aim for higher returns leveraging more capital, it can mount up your losses significantly in a short time. Whether in the stock exchange or fantasy stock, setting limits can be a lifesaver.
Not setting of financial benchmark
Having mentors is a great way to pick up new strategies. Nonetheless, your investment goals should not conform to what they do. Set your own financial goals and build your portfolio accordingly and steadily based on your starting point. The best stocks to pick in fantasy finance or to let go of should align with your financial benchmark.
The bottom line
Beating the stock market takes conscious and continuous learning. Whether you aim to be a Wall Streeter or an investor playing the long haul game for retirement, sharpening your trading skills is of the utmost importance. Reading investment books and analysis are great. Testing and improving your acquired skills against other investment enthusiasts also sounds like a plan. So, we say go ahead and flex financial skills against others, including friends and family playing financial games.
