If you are looking to play the market but you aren’t quite ready to put your hard earned cash on the line then get started with a practice account. You can use an online trading simulator that looks exactly the same as the real platform and it can prepare you for the real thing. You get to experience what trading is like, learn how to use the tools and do it all without sacrificing your own money. Online trading with a practice account is easy and it is a great opportunity to learn.
Pick Your Tool
There are a couple of different types of tools that you can use to emulate trading and almost every bank or brokerage firm will have them available to you, you need only sign up for an account. The first type allows you to trade with fake money and they will walk you through the process of how trades work. Trading is set up as an interactive type of game meant to teach you strategies behind trading.
The second type of stock trading emulator is a replica of a real trading platform and you are given a set amount of “money” in which you can buy, sell and trade stocks. The money and stocks follow the real world markets and you win or lose according to what is happening out in the market. The only difference is that the gains or losses aren’t real.
Why Use a Simulator
The purpose of simulators is to teach you about trading stocks and to make you more comfortable with the process. You can take the time to test your strategies before you start using real money. It gives you the time to help you learn how to minimize your losses while you are learning to identify real opportunities. You can learn more complicated stock trading strategies.
Treat it Like a Real Account
Use the exact same strategies as you would on a real account, be mindful of your trades. Try out a couple of different emulators to find a platform that you are comfortable with and gives you the information that you need to make your trades. While buying and selling stocks is the same on every platform there are differences in the amount of information that each provides. The emulator is your chance to learn but it is ideally to help you move on to real trading when you are comfortable and ready.