Fantasy finance is one of the newest trends combining the speed of the stock market with the excitement of fantasy sports.
When you think about trading stocks, you’re probably picturing old movie scenes with hundreds of traders shouting over each other on an open floor. While this is certainly how things were done once upon a time, modern information technology has created options for anyone to get started on the stock market from the comfort of their own home. You don’t need any kind of special training or equipment, just internet access and a desire to experiment, learn, and grow. Fantasy trading platforms bring the world of Wall Street to the palm of your hand and let you get started on the stock market for free.
Fantasy finance is one of the newest trends in online entertainment combining the strategy of fantasy sports with the fast pace of day trading. With no barrier to entry, anyone can sign up and start participating right away for free. In as little as 15 minutes, you can finish your first match and—if you’re able to outsmart your opponent—win some real money.
How Do Fantasy Trading Contests Work?
Fantasy trading platforms like Stockbattle or SuperStox are a rising trend in fantasy gaming that aims to bring the excitement of fantasy sports to a new market. In traditional fantasy sports, users pick players from a roster and earn points based on the collective performance of their teams. Fantasy finance takes those same principles and applies them to the much faster world of day trading. Unlike sports, which can take weeks to play out, stocks rise and fall every minute, meaning that you can see results in as little as 15 minutes.
Users create a virtual portfolio of up to five stocks and receive points based on how well they perform in a series of predefined matches. Each match lasts from 15 to 60 minutes and uses real-time NASDAQ data to evaluate the performance of their virtual portfolios. Every contest always results in one winner and one loser. Whoever’s picks perform best (based on percentage growth) wins the entire prize pool.
Is Fantasy Finance the Same as the Stock Market?
Fantasy finance is as much the stock market as fantasy football is the NFL. While it uses real-world data and follows existing stocks, the stakes are much smaller, and there’s no real risk of a bad investment. Unlike traditional stock markets, you don’t actually lose money if your stock tanks. If you make a bad pick during a fantasy trading contest, you might not earn many points, but there’s always a chance that your opponent has done even worse. Even a less-than-ideal virtual portfolio can still pay out.
On the flip side, even if your picks skyrocket beyond expectations, you won’t earn any more than the initial prize pool. This might sound like a drawback, but this low-risk, low-reward system is exactly what makes fantasy finance such an attractive alternative to traditional day trading.
How Do I Get Started With Fantasy Trading?
Jumping into any endeavor without doing the proper research is a recipe for disaster. Before you get started on fantasy trading contests, it’s good to look at a few things to give yourself the best chances for success.
Pick the right platform
There’s no shortage of fantasy trading platforms available for you to choose from, but picking the right one can be daunting at first. Each platform has its own format and rules. For example, StockBattle offers 15-minute, head-to-head matches whereas apps like WealthBase let users climb up a competitive ladder over the course of a season. Which style is right for you will depend on where you feel most comfortable.
Follow market trends
Just because it’s fantasy finance doesn’t mean that real-world knowledge is useless. Since fantasy trading contests use real-time data, the more up-to-date your knowledge is, the better your odds of winning. Keep up on the latest happenings, even if it’s just a quick glance at the Wall Street Journal each morning. Knowing really is half the battle.
Play to the match
Unlike traditional stock markets—which can take days, months, or even years to turn a profit—fantasy finance provides results in a matter of minutes. This short-term focus means that the way you pick your stocks has to be focused on the same timeframe. Fantasy trading platforms will show you the history of a stock over the last one minute and up to the last seven days. Is the stock you’re interested in doing well today? Does it tend to trend up at certain times of the day? These are the kinds of things that you should be considering when choosing a virtual portfolio.
What Makes a Good Fantasy Stock?
The best fantasy stocks don’t have to be the biggest companies or the most well-known brands. In fact, since victory is determined by percentage growth, smaller stocks can actually offer a far better opportunity for rapid growth. When you’re looking at stocks, try to find “AAA” picks. This doesn’t just mean picking a “blue chip” stock. The three “A”s stand for Affordability, Accessibility, and Acceleration.
- Affordability: While you don’t actually “buy” stock in fantasy finance, it’s still worth looking at the price of a share. Yes, that Amazon stock price will go up, but how much of a percentage growth is that? Real dollar values are less important in fantasy trading, so look for stocks with percentage growth options.
- Accessibility: This is based on things like market cap and liquidity. Even the very best stock is worthless if you can’t actually buy it. The easier it is to acquire a stock, the more likely it is to swing upward as more people try to jump on board.
- Acceleration: Growth is great and rapid growth is even better. If a stock’s been growing consistently over the last several days, it’s probably worth looking into. Be careful though, as rapid growth is rarely sustainable in the long term.
Practice Makes Perfect
There’s no silver bullet when it comes to stocks—fantasy or otherwise. What works for one user might not work for another. Don’t be afraid to experiment and see what works best for you. Most fantasy trading platforms let users get started with Freerolls; these are free-to-enter contests that play just like the real thing and even pay out real money to the winner. Freerolls truly are the best way to get started as they have zero risk and still let you get acquainted with the ins and outs of your platform.
Start Trading Today
With nearly instant sign-up and the ability to start with Freerolls, there’s no reason not to give a fantasy trading platform like StockBattle a try. In just 15 minutes you could earn awesome extra income and practice a valuable new skill. You just might find a hidden talent you never thought to look for.