[From 5 AM Joel…]
This is a simulation game to test whether you can predict the timing of the stock market.
Try it: Market Timing Game
All you do is click the [Start/Pause] button, and the graph will start moving. Then, use the [SELL] and [BUY] buttons to move your money in and out of the stock market.
Goal is obviously to SELL when stocks are high and BUY when stocks are low.
Your investment results will be compared against the general market results. Here’s a screenshot:
Play it a few times. Tell me if you can beat the market!
If you’re like me:
- Most (if not all) times you end up with less money than the market. You should have just kept your money invested the whole time.
- You realize after a while that the less you click buy/sell, the better your results. The more transactions, the more likely you are to lose.
- You feel humbled. You are not as lucky as you thought you were.
Have a think about this game before you BUY or SELL any stocks in real life. It might just save you from making mistakes!
“Stay the course. An investment plan established during calmer times should not be abandoned in the midst of a market downturn.”– Tim Buckley, CEO of Vanguard in his recent public message regarding the coronavirus.
Every day Joel gets up at 5am and sends a short positive message around life and finances to friends, family, co-workers and strangers. Even on the weekends. This was yesterday’s that J$ really liked, so he asked if he could re-share it to everyone here. To learn more about these emails or to sign up to them, visit 5amjoel.com.