TRADING on the stock market is a daunting prospect for many Australians, but not Kennedy Baptist College student Brandon Smith who won first prize in the Australian Securities Exchange (ASX) Share Market Game.
Trading as Smiths Chips, 12-year-old Brandon was the youngest entrant in the game but came out on top of thousands of school-aged competitors from Years 7 to 12 all over the country.
He achieved a 25 per cent market capitalisation on his investment, comparable to the earnings made by Australia’s top brokerage firms in the same trading period.
Designed as a learning tool, the share market game allows students to buy and sell shares in 200 companies listed on the ASX.
It is played with pretend money but simulates real share market conditions using live prices and brokerage is charged on each trade.
Students receive a virtual $50,000 that they can invest over a ten-week period.
The prices students buy and sell at are the same as they would get in the live market and the game is as close to real-life share trading as it is possible to get.
“One of the main things that helped me was deciding how much I was going to sell my shares at before I bought them if they lost value,” Brandon said.
“This helped me to minimise any early losses at the start of the game so I would still have capital to invest throughout the game period.
“I had established what my teacher called a ‘margin call’ so I could calculate any possible risk.”
As reward for finishing first in Australia, Brandon received a $1000 cash deposit into his own bank account.