The Stock Market Is A Game

As a kid, have you ever played the board game Monopoly? This is a game that deals with real estate, banks, infrastructure, and millions of play money.

Same as in Monopoly, the stock market is a game where one has to decide on the buying and selling of your properties. However in the trading business, you are making stock market decisions.

The money you gather in Monopoly when you have gone around the whole board game matches the dividend or the payment in the stock market. The amount of the money you gather would be determined by the properties you possess in the game. Just as in the stock market, the more shares you possess, the bigger amount of money you would be given.

If 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. Same as with your stocks, when the market goes down, you have the possibility to decide of which shares to drop and which shares to retain.

In winning the Monopoly game, you have to buy properties before the construction of your houses and hotels. You would lose to another player if you sell these properties to him even for twice the normal price of your property. Just as it is in the stock market, winning lots of money does not mean you are successful in your business. In order to win with your stocks, you should be capable to double your property so that you will get a higher dividend of shares.

When you want to play Monopoly, you need an opponent to start the game. It’s your opponent’s job to prevent you from buying many properties and gathering large amount of money from him and from the bank. Same as in the stock market business, there are also factors that prevent you from the success of your stock. These don’t essentially have to be other investors, but it could be the taxes you have to pay or the interest of our stockbroker from your profit.

Participating in the game of the stock market could be done even with just a small amount of money. Same as with Monopoly, all you have to own are colorful play-money for you to own properties and gain more money over time.

Although the stock market could be compared to Monopoly, you should be cautious at the stock market. Why? Because this is real life and cold hard money is at risk.