How To Use Google Finance As A Stock Market Simulator
October 17th, 2008The markets have been absolutely crazy the past few days. Stocks have fallen to all time lows providing investors with the perfect entry point to hit it big. The volatile market has created massive opportunities to make money on the stock market. Unfortunately I don’t have any money to actually invest in the market, but I can still dream! That’s why I’ve taken such a big interest in virtual stock markets.
There are several stock market games and simulators around the internet. Some of them even offer cash prizes! Over the past week I’ve played with a number of stock market simulators. Each has it’s own advantages and disadvantages. However, I’ve found that the best way to do this is to just set up a portfolio at Google Finance. A stock market simulator is actually fairly simple to set up. In fact before we had computers people would just turn on the TV, and track their fantasy transactions on paper. All we really need to do is let Google Finance do the math for you. Then all you have to do is sit back, and watch the numbers!
Getting Started With Google Finance Portfolios.
If you already have a Google account, all you need to do is go to http://finance.google.com and click on Portfolio in the upper right hand screen. This simple screen has everything you need. The first thing you need to do is give yourself some virtual cash. Click on the “cash” link towards the bottom of the page. Fill out the form with the amount you want, and you’re good to go! Why not start out by giving yourself $100,000 cash, as that’s what most contests give you.
Making Virtual Stock Market Transactions
Since we’re using Google Finance, why don’t we try buying some Google stock? All we need to do is watch the markets. When the stock hits a price that we want to enter we simply remember that price, and the enter in a transaction into our portfolio. For instance on 16th of October 2008 Google’s stock hit all time lows. Let’s assume that on this day we bought 200 shares at $310.84 per share. Let’s enter this transaction into our portfolio. Click transactions from the nav bar towards the bottom of the screen, and fill out the form. Make sure that you have the “deduct from cash” button checked so that it takes the money from the $100,000 we gave ourselves earlier.
Tracking Your Progress
We are now taken back to our portfolio. It now shows your shares in Google, along with real time update information about how much money we are making. Now you just have to decide when to sell. Use Google Finance’s other tools to research your stock, and predict when you should sell. When the stock hits a price that you like you just follow the same process to buy. Add a new sell transaction, and simply enter what the price was at the time you decided to sell. Of course nothing is keeping yourself from cheating so be honest!
What about stop losses, and limits?
Stop losses, and limits are orders to buy or sell a stock at a certain point. When the stock hits the specified value a computer program will sell the stock off. Unfortunately this isn’t something that is built in to Google Finance. However, you can still simulate it. We just remember what price we want it to sell at. If the stock hits that price while you are away just create a sell transaction for it when you get back online.
Using Google Finance API To Make It Even Better!
As great as this system is I’ll admit it has it’s flaws, and lacks features. However, if you have programming skills you are more than able to change things with the Google Finance API. This API allows external applications to make transactions into your portfolio, and lets you make any kind of tool you want to work together with your portfolio.
I am currently starting on a project that will give you a better simulator interface. This interface will provide you everything you’d ever need on one page. The result is the perfect stock market simulator. Check out my proposed design and tell me what you think!
Good luck!