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The Most Frequently Asked Questions About The Stock Market In 2021

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High volatility and market trends can feel scary, but that shouldn’t deter us from investing in stocks. Name one thing in life that doesn’t go through its Ups and downs? I’ll wait.

The fact is buying stocks is a necessary means to acquire wealth. Still, many people wonder how to get better at trading and minimize losses?

While there are many ways to go about this, the most practical way is through fantasy stocks. It has helped me diversify my portfolio, dive deeper into the market, and make good gains. So here are some Q&As to help any trader or aspiring trader make better investment decisions.

How can I make more profit buying stocks?

The short answer is to become a good trader. Playing fantasy stocks is the best way to hone your trading skills fast and with little to no cost.

Unfortunately, it can be exhausting to spend hours reading articles and watching youtube channels for trading advice. Not that it’s bad, but it can get overwhelming. Plus, all the knowledge in the world may not prepare you for real-life trading floors. Fear and Uncertainty (FUD), greed, and FOMO are all real-life scenarios that knowledge alone can’t prepare you for trading. Only trading experience will.

I know many experienced traders say, “You lose, and you learn,” but why can’t we learn without losing? Money isn’t easy to come by, and it certainly feels devastating when you lose it in the stock market.

Fantasy finance offers you a chance to play in the stock market without actually being a player. It is potentially risk-proof. You don’t have to lose your hard-earned money to learn how to trade! With fantasy stocks, you gain first-hand experience buying and selling stocks against price fluctuations in the market. It is the perfect training ground for traders.

For instance, StockBattle is a stock market game that allows you to invest in virtual stocks and cryptocurrencies that you desire using funds in the game. The game tracks real stock market data to determine if your predictions are correct. You can play freerolls or deposit less than a dollar for a 1-hour game with six other competitors. The winner stands a chance to win $15! In addition, they have an extensive catalog of stocks you can buy from the NASDAQ index and Cryptocurrencies. So feel free to explore trading as much as you’d like. The essence of these games is that it shows us exactly how we would perform in the real stock market.

What exactly are Fantasy Stocks?

After learning about fantasy stocks, I wish I knew about them before diving into the world of stock markets six feet deep. It certainly would have saved me a few bucks! Fantasy stocks refer to a virtual stock market game where you can buy stocks you want in real life and build your own in-game portfolio. Such games are great because it allows you to test your trading knowledge and skills by trading with virtual stocks against real-time market movements.

If you are familiar with the way fantasy sports work, you’ll feel right at home with fantasy stocks. In fantasy sports, you can predict the performance of your favorite players before a real-life game. Based on how accurate your predictions are, you earn points and rank higher on the leadership board worldwide. Similarly, in the case of fantasy stocks, you predict the performance of any stock, which you believe will go up, and you can make a big profit from buying and selling at the right time. Players with accurate predictions win the competition and can earn real cash prizes.

What stocks can I buy this month to make a profit?

There are a lot of speculations on which stocks will outperform this month. However, success in trading requires much more than knowing the best stocks to pick. Choosing a good investment with fundamentals and buying at the right price is also an essential part of trading. It will help determine the returns you make.

S&P 500 companies are seeing huge returns this year. So those are always a safe bet. This index represents the top 500 performing companies on the United States Stock Exchange. When you invest in S&P 500 companies, there is a good chance you may get 10% annual returns on your investments and possibly more. The S&P 500 index has a market cap of $35.4Trillion. With stocks like Apple (AAPL) taking the lead with a $2291 billion market cap. Microsoft (MSFT) has a $2046 billion market cap, while Amazon (AMZN) has a $1731 billion market cap.

I recommend The S&P 500 index because it saves you the stress of combing through different companies’ stock data looking for the right one. Instead, you can rest assured you are buying stock from high valued corporations like  Tesla Motors (TSLA),  Berkshire Hathaway (BRK.B), or Nvidia (NVDA). These are always the best stocks to pick. They can help diversify your portfolio and give you huge returns. However, before committing to any investment, be sure to research the company’s current stock price so you can have a good entry point.

Now, which stocks can we say for certain will explode this month?

While this isn’t investment advice, I am keeping my eye out on Google Alphabet (GOOGL), Nike (NKE), PayPal (PYPL), Nvidia (NVDA), and Applied Materials (AMAT). These are excellent stock options you should put on your radar.

What are the graphs to look forward to profiting more?

Look through the S&P 500 Index and the NASDAQ100 Index for companies with potential stock rise. Here are the best-performing stocks in the S&P 500 so far in 2021:

Best stocks as of July 2021

SymbolCompany NamePrice Performance (2021)
MROMarathon Oil Corp.104.20%
FANGDiamondback Energy Inc.93.99%
DVNDevon Energy Corp.87.53%
OXYOccidental Petroleum Corp.80.65%
NUENucor Corp.80.35%
EOGEOG Resources Inc.67.32%
GPSGap Inc.66.67%
AMATApplied Materials Inc.65.01%
COFCapital One Financial Corp.56.49%
IVZInvesco Ltd53.36%
NVDANVIDIA Corporation53.22%
XOMExxon Mobil Corp.53.03%
APAAPA Corporation52.43%
COPConocoPhillips52.29%

Source: Nerd Wallet

Also, investing in companies that are about to go public is a great way to double your investment.

Top IPOs you should watch out for this year include;

  • Stripe – Valuation: $95 billion (Possibly another PayPal)
  • Rivian Automotive – Valuation: $70 billion
  • InstaCart – Valuation: $39 billion
  • Discord – Valuation: $10 billion
  • Couchbase – Valuation: $3 billion

Source: Forbes

My chips are on tech companies like Couchbase and financial technology companies like Stripe. These companies tend to perform very well in the long run, leading to an increase in stock price. So early birds get the largest cake slice.

What stocks can I buy as fantasy stocks?

You can buy most S&P 500 company stocks, ETFs, and even crypto. On a game like Stock Battle, you can buy Cryptocurrencies such as Bitcoin (BTC), Ethereum(ETH), Cardano(ADA), and so many others.

Stock Battle has a wide range of crypto investments you can make. With little money, you can buy and sell your favorite crypto assets. Enjoy trading with a bigger budget and no fear of actual losses.

What are the Lifehacks to profit with fantasy stocks?

After analyzing a particular stock or coin, it’s normal to want to go all-in with your capital. But what if you’re wrong? The truth is the power of trading lies in prediction. So wouldn’t it be better to play fantasy stocks in a game like StockBattle to test if your predictions are correct? At least you’d gain enough confidence in your skills before hitting the live market.

Also, If you are looking to brush up on your trading knowledge or become an expert, playing fantasy stocks can help you achieve that. Rather than investing large sums of money on stocks, play and trade fantasy stocks with little money and see how well your stocks perform.

If you profit in the game and win competitions, it will undoubtedly help you make better investment decisions in the real stock market. In addition, your forecasts on stocks, crypto, and overall trading knowledge will become top-notch!

 

Guest article from Stock Battle. Images from Unsplash and Pixabay.

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