06:15 PM, 24 Jun 2017 (AUS EDT)   The market is currently closed       

Share Trading Game Rules: How To Play


When you sign up to StockWatch Trading, you are given a fictitious AUD$50,000 to trade on the Australia Stock Exchange (ASX). We have implemented some rules to help you with your trading:

Diversification

Rule 1: You can buy a maximum of $10,000 for any company

One of the most important lessons in investing in shares is to diversify your portfolio. In other words, don't keep all your eggs in the one basket. It is a good idea to have at least 8 different companies.

Risk

Rule 2: Only the top 500 companies can be traded

As a beginner to share investing, it is a good idea to stick to shares that are less volatile. Even though there are over 2000 companies on the ASX, we have limited the trading list to the top 500 companies.

Brokerage

Rule 3: Each action, Buy or Sell incurs a brokerage fee of $29.95

Like real trading, there is a brokerage cost incurred whenever you make a buy or sell. This is the fee you pay to your broker. In real life, expect this cost to be around $20 to $30. We have set the brokerage fee to $29.95.

Minimum amount of shares to buy

Rule 4: Minimum amount of shares for each buy is $500

In real trading, the minimum amount of shares you can purchase for any particular company is $500. We have also set the minimum purchase to $500.

Remaining money

Rule 5: Surplus Cash is treated as cash in hand

Surplus cash is treated as cash in hand, i.e. cash that is NOT earning you any interest.

Too much trading

Rule 6: Limit of 10 trades per day. This includes buy and sell orders

Beginners usually lose a lot of money on share basics such as trading too frequently and not considering the brokerage cost. We have made a 10 trade limit per day.