Financial markets can be an extremely unforgiving place, you cannot ‘undo’ a buy or sell, likewise just because you don’t understand or know about something, doesn’t mean you don’t have to pay out your position – with this in mind, education & knowledge is vital.
People may or may not understand all instruments at their disposal and may invest in positions that are leveraged – such as CFD’s, which only require a small percentage of the actual position or outlay to make the trade – which could cost you a lot of money.
There are a number of excellent share market books, such as ‘Starting out in shares – The ASX Way’ that can provide a basic understanding. While most share trading platforms have their own training platforms – such as the IG Academy – which have a wide range of information, interactive exercises, quizzes and videos to help you learn how to trade using their platforms and what everything means.
Meanwhile, the ASX sharemarket game provides an informative and interactive game for the general public and schools to proactively learn the basics, and start trading shares through a portfolio of ‘fake money’ but trading on real shares, in a like-real market.
This share market game provides individuals with not only the opportunity to win some great prizes but also formulate investment strategies to encourage education including learning how to watch market movements, execute trades and how to become financially literate on the share market – all before a registered user even steps foot in the investment ring.