The Stock Market Is A Game
As a kid, have you ever played the board game Monopoly? This is
a game that deals with properties, banks, infrastructure, and
millions of colorful dollars.
Like in Monopoly, the stock market is a game in which you have
to decide the buying and selling of your properties. Although in
the case of the trading business, you are making stock market
decisions.
The money you collect in Monopoly when you have circulated the
whole board game would be the dividend or the payment in the
stock market. The amount of the money you collect would be
determined by the properties you have in the game. Just like in
the stock market, the more shares you have, the larger amount of
money you would be given.
When you are getting bankrupt in the game of Monopoly, you have
the power to sell your colorful houses or building when you need
to regain your finances. Just like in your stocks, when the
market falls, you have the authority of which shares to sell out
and which shares to retain.
In winning the Monopoly game, you are obliged to keep your
properties before the construction of your houses and hotels.
You would lose to your challenger if you sell these properties
to him even for twice the normal price of your property. Just
like in the stock market, making lots of money does not mean you
are successful in what you're doing. In order for you to win
with your stocks, you should be able to double your property to
give you a higher dividend of shares.
In playing the board game, you need an opponent to start the
game. It's your opponent's job to prevent you from owning many
properties and collecting large amount of money from him and
from the bank. Just like in the stock market game, there are
also factors that prevent you from the success of your shares.
These don't necessarily have to be other investors, but it could
be the taxes you are obliged to pay or the interest of your
stockbroker from your dividend.
Playing the game of the stock market could be done even with
just a little amount of money. Just like in the board game, all
you have to own are colorful play-money for you to own
properties and collect more money in the future.
Although the trading system could be compared to the board game,
you should take the stock market seriously. Why? Because this is
real life and real money is at stake.