Learning Exercise

Momentum Trading Game

This is a short demonstration or individual assignment that demonstrates how news and momentum are used to make money in stocks.
Course: finance

This is a game that allows the student to invest in four stocks. The price rises and falls after the students advances... see more


1.Go to the site listed and read the opening discussion. Click on "Trade Traditional Stocks"
2. Read the next screen and again click on "Trade Traditional Stocks". You may be prompted to download Shockwave.
3. Under each of the four companies is a company profile. Read each profile.
4. Allocate $100,000 into each of the four stocks. Note that the game can only be played once since the stocks behave the same way each time . Be careful that you are making yor best effort the first time.
5. Click "advance two weeks"
6.Click "news flash" After reading the news flash reallocate your investment in each firm as you see fit.
7. Continue advancing and reallocating until the game in completed and your performance is evaluated.
8. Compare your strategy and performance to your classmates.