How would it feel to live like a stockbroker?
Well lately i have been feeling like a stockbroker! And it’s fun! I almost doubled my money but then I bought 5 million pounds… The fun ended.
No, I wasn’t really a stockbroker. But I found this app called 500Plus. This app allows you to do a demo version of there stock exchange application. When I started they gave me €20.000 of fake money. First I started buying shares I know like KLM, KPN, Shell. Those had green numbers and were going up. Too bad they dropped when I just bought them! I started to panic and sold them right away. Before they dropped even more. After I sold them they went up again… Dammit!
I had a better idea. I started looking at shares that dropped dramatically and bought those. I simply thought that if they drop like 15% it’s most likely they will go up. And this tactic worked quite well. I changed from shares to currencies. Currencies can be traded 24 hours 5 days a week. And they fluctuate more rapidly. I was doing very well. In two months I changed the €20.000 into €38.000 of fake money. Woohoo!!
The app allows you to buy on margin. This is a small loan to buy more shares or currency. buying on margin gives you the opportunity to make a lot more money. If you can buy $50.000 instead of $5.000 and make 1% profit in one day the margin is great. But it can also go wrong very quickly because if you make a loss on your shares you also need to pay your margin… And you never sell when you’re loosing a little bit. Before you know it your whole Equity is paying for the lost an margin.
That happened to me last week. The pound was going down and I immediately started buying pounds. I even made €1.200 profit on one buy in five minutes. Then I became greedy and bought £5.000.000. One day later I was kicked out of the app and had to start all over again.
Pretty terrifying to realise I got that greedy with fake money. But it was a fun ride! I can’t imagine how much money professional stockbroker make or loose each day. For me I prefer fake money. Doesn’t make you rich but neither poor,