The world of the financial markets is like an ocean full of opportunities. However, the same as this powerful element, it hides a lot of risks. Therefore, wouldn’t it be more reasonable to learn to swim in a calm pool, instead of diving into a roaring giant?
Stock market simulators. Practice trading without the risk
Stock market simulators usually represent effective online tools that help investors practice their trading skills, without the risk of losing their hard-earned money. Setting up an account, you get a particular amount of simulated money to make simulated investments.
Many stock market simulators provide a rather comprehensive functionality, similar to real trading platforms. They offer a wide range of available instruments, the opportunity to place stop/limit orders, open short and long positions, and much more.
Using simulators, traders can test not only their skills but check any trading strategies in practice virtually, without the risk of losing real money.
Benefits for trading newbies
If you’ve just started your trading journey, a stock market simulator is a good way to learn the basics of trading, and practice various trading techniques. You may learn how to read stock tables and intuitive charts, understand the effects of volatility, choose and try different trading strategies, etc.
Simulated trading can also become your financial tutor, providing analytical reviews, video guides, and up-to-date stock market information about major events that may influence stock prices.
Stock market simulators teach you how to conduct your own market research. Besides their main function of creating an illusion of a real trading experience, they provide real historical prices and trading data for different indices and industries, price-earning ratios and performance charts.
Benefits for experienced traders
You may think that simulated trading and various stock market simulators are made exclusively for unexperienced or amateur traders. However, they are not. Stock market simulators, especially those closely replicating the real markets' trading, can also bring value to mature investors.