Stock market games are an awesome way to introduce your students to investing, but keeping them on the right track can be tricky. Some students want to dive into day trading penny stocks, while others will want to pick out a mutual fund and stay out of the action. Striking a balance can be tricky, which is why our new Diversification Rule is here to help!
How It Works
When you next set up your HTMW class, you now have 2 settings to make sure your students are building a diversified portfolio.
Position Limits have been part of HTMW for some time, but they are now more important than ever! Setting a “Position Limit” puts a cap on how much a students can invest in a single security. For example, if your students have $100,000 portfolios and a 25% position limit, they can only invest up to $25,000 in AAPL stock.
Diversification Limits are new for 2019 – this is a brand-new setting that determines how much your students can invest in an entire security type. For example, if your students have a $100,000 portfolio and a 50% Diversification limit on Stocks, they can only invest $50,000 in stocks as a whole – the remaining $50,000 must be invested in Mutual Funds or held as cash.
Try to mix and match your Position Limits and Diversification Rules to make sure students get their feet wet in a variety of different securities – and make this the most exciting stock game yet!
If you haven’t already, make sure your create your class for this Spring by Clicking Here.