This article appeared in the August 2014 ASX Investor Update email newsletter. To subscribe to this newsletter please register with the MyASX section or visit the About MyASX page for past editions and more details.
The latest game has more stocks, more functionality and bigger prizes - and you can sign up now.
By Tony Hunter, ASX
You might be wondering why ASX has put an article about its Sharemarket Game in the ASX Investor Update newsletter. After all, most readers have started investing and some are quite sophisticated, with many years of trading experience.
There are two reasons. First, we are bringing the Sharemarket Game to your attention because it can be an effective way of trying out new strategies or trialling investing in stocks or sectors.
Perhaps you are typically a buy-and-hold type of investor and want to have a go at doing some more active trading. The Sharemarket Game is a great place to start. It's much better than just writing your plans on paper or sticking your trial purchases in a portfolio watch list, because the Game is a close approximation to the real market.
Unlike other trading simulators, the Sharemarket Game uses live prices. So the price you buy at is the current market price and you trade against underlying market volume.
The other reason we have brought it to your attention is that friends and family are often the first people asked when novices want to get into the sharemarket but do not know where to start.
You can refer them to some courses, books or an adviser you trust, or you could say: "Why don't you sign up for the ASX Sharemarket Game. It's free, it uses real prices and it operates like the real market. You will get to understand how the market works and become familiar with the top 300 companies in the market. It lays a great foundation so you will be much better prepared when it comes to the real thing." That is certainly what I tell my friends.
How it works
All players are given a notional $50,000 to invest and the winner is the person with the highest portfolio value (cash and shares) at the end of the Game 15 weeks later. There is a diversification rule, so you can't put all your money into just a couple of stocks, and you get charged brokerage, so beware of overtrading. But that is pretty much it.
Registrations opened on July 17 and trading started on August 7, so sign up for free and start reviewing the stocks. If you are already signed up to MyASX, it's even easier.
Now more than ever is a great time for you and your family to get involved.
We have redeveloped the Game from top to bottom. Some of the new features include:
- You can now play and check your progress on mobiles and tablets as well as desktop computers.
- We have added falling sell orders so people can familiarise themselves with this important risk-mitigation tool.
- We have doubled the number of stocks you can choose from; we now cover the S&P/ASX 300.
- You can set up your own league. Invite your friends and family and you will get your own rankings for that league as well as be part of the national rankings.
And then there's the prizes. The ASX Sharemarket Game is sponsored by Grow by ANZ, which provides the prize money. This includes $8,000 for the national winner, $6,000 for second and $4,000 for third. Plus there will be gift vouchers of $200 each week for most-improved players.
That's a lot of reasons to play the Sharemarket Game and let others know about it. Get started now.
About the author
Tony Hunter is head of ASX Education.
The views, opinions or recommendations of the author in this article are solely those of the author and do not in any way reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691 and its related bodies corporate ("ASX"). ASX makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions. To the extent permitted by law, ASX excludes all liability for any loss or damage arising in any way including by way of negligence.
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