The online stock market simulator – is it possible to learn to make money in the stock market this way?

The online stock market simulator is a great way to test yourself as a trader in the stock market whether you want to make a full-time income or just invest your savings. The stock market simulator allows you to enter the virtual world of the stock market for free, without risking losing any money. What is a stock market game application? Is it possible to learn to invest and make money this way?

The online stock market simulator

In most cases, stock market investors experience disappointment after just a few months or even weeks, which is associated with either a loss or a small profit. Is it possible to protect oneself from this when starting the adventure with the stock market? It turns out that to some extent yes.

Having theoretical knowledge about investing in the stock market, an investor often feels overconfident when making his decisions. Very often he forgets about the consequences of ill-considered moves due to his lack of familiarity with the market. To prevent this, before investing real money, it is worth trying your hand at an online stock market simulator.

Online stock market simulator – what is it?

An online stock market simulator is an easy-to-use program that mimics the real life of working in the stock market. In most cases, stock market games give users $100,000 of virtual money to start investing. Then investors choose stocks to buy. The interesting thing is that most of them are currently available to buy in the stock market.

Stock market simulators match current as well as actual stock market performance. Some of them charge fees and brokerage commissions. It is worth knowing that handling amounts can greatly affect a player’s final score, in including them in the simulation helps users learn to take these costs into account when deciding whether to buy stocks. Users also learn the basics of finance and learn the basic terminology that is associated with investing in the stock market, such as shorting, trading.

Stock market simulators – types

Stock market simulators fall into two main categories:

• Stock market games, which allow you to compete with either friends or unknown users to choose the best possible stocks within a managed portfolio. In this case, the emphasis is less on trading and more on so-called “buy and hold” throughout the game. The more shares a user buys, the better the ranking of the game.
• Virtual trading, which allows detailed monitoring of the market situation and active trading of stocks for virtual profit. These stock market simulators usually use the broker’s real trading platform and allow the comfort of using many of the tools available to those who invest real money. Virtual trading is largely used as a preparatory exercise for real stock trading and to test the platform.

How much time to spend on a stock market simulator to invest effectively in the stock market?

Unfortunately, in this case, there is no concrete answer. For some, it may be 4 weeks, a matter of getting familiar with placing orders, while for others, even several years of investing in the stock market simulator may not be enough. So what is the point of playing on a stock market application? By investing virtual money in the stock market, the person playing can test whether his ideas about the stock market coincide with his beliefs. If he makes a lot of mistakes playing the simulator, then maybe he shouldn’t invest real money in the stock market. Of course, it’s good to learn from mistakes sometimes, but is it really worth losing your hard-earned money if you can learn on a simulator without losing a penny.

Of course, virtual investments differ a lot from real ones, especially in terms of the emotions experienced. Emotions are considered by most investors to be the cause of losses. This relationship is described in many books that are related to the psychology of investing. Many mistakes that are related to the fact that the investor does not keep his emotions in check can be noticed and combated by playing a simulator. Examples of mistakes that are related to the psychology of investing are, for example, indiscipline, impatience or lack of self-control.

The stock market simulator allows for effective learning of investing, provided that the player simultaneously learns theory. A beginner, by acquiring theoretical knowledge, can put it into practice and consolidate recently acquired information. It is not necessary to have any specific knowledge to create an account on the simulator, it is intended for everyone, especially novices.

How to choose the best online stock market simulator?

A stock market simulator is a tool that allows investors to simulate buying and selling stocks and track their virtual performance. Some simulators are largely designed as entertainment, so a future serious investor should look for a simulator that is as realistic as possible. Consider the markets it simulates, trading techniques, frequency and detail of updates.

When choosing an online stock market simulator, the first consideration should be its price. Both free stock market simulators and paid ones are available. The decision on which one to choose should be a personal matter. It is generally accepted that you should pay only if there are significant benefits, and use free solutions when they are useful.

You also need to check whether the stock market simulator covers the type of investment you are interested in. The first thing to check is whether the simulator covers the markets in which the investor intends to invest and whether it covers all stocks in the market. Next, check whether it covers the user’s preferred method of trading. Some go stock market simulators cover only ordinary buying and selling, while others allow simulated short-selling of stocks. This is a technique by which the user can make profits when the price drops.

A key feature of a stock market simulator (for someone who wants to seriously invest in the stock market) is real-time trading. Some of the simulators are designed essentially as games, in which case prices are updated once a day. This may be sufficient if the user wants to learn the basics of stock investing, but it will not be sufficient if the user wants to invest the stock market seriously – especially daytrading. This is a strategy that involves buying and selling stocks on the same day to make small but quick profits.

A person who wants to learn how to invest in the stock market can also look for a stock market trading simulator that includes features designed to be as realistic as possible about costs. This could include commissions that would have to be paid to brokers if the user invested seriously.

Read also: How to start investing in the stock market

A good online stock market simulator will allow the user to track his performance in terms other than net profit or loss. For example, such a simulator can compare an investor’s performance with that of the market as a whole. In this way, it gives a better idea of how profitable his decisions would be.

A tool for professionals or individual investors

Individual investors are looking for the best simulators for learning when in the stock market, which help them become more successful investors. The choice of a stock simulator depends largely on how well a particular simulator meets individual needs. There is no one stock market simulator that is universal and best, regardless of the situation.

Using stock market simulators in practice and strategy trials

A good stock market simulator serves as a great practical tool in making investments and trying out market strategies. In addition, it offers the opportunity to learn, as well as master the basics of investing and finance. Simulators use various analytical tools, such as price-earnings and debt-equity. The trading simulation can also help you understand how broad economic insights and business information affect markets and stock prices.

Stock market simulator – how to play?

The stock market simulator allows you to test your skills by investing virtual cash in the global financial market. Any test account, whether it is a stock market simulator or a forex simulator, works the same way. The user has to register, and in return receives a certain pool of virtual money, which he can invest according to his own strategy.

Only the money is not real. Everything else – quotes, market changes, prices, etc. – is real. The user has access to all or most of the markets and financial instruments and features of the platform, including real technical analysis indicators, quotes, and other information. You can therefore test your own skills and learn how to use the platform without any risk.

Online stock market simulator – an example

Stock market simulators are very similar in operation. First of all, you need to create an account. This process is trivial, and in the tab itself you need to fill in such information as:

• Login – it will serve the investor throughout the stock market game. Thanks to him, the other players will be able to see the user’s profile and check how high in the ranking he is,
• Password,
• Email address,
• Name,
• Year of birth,
• Rank.

Of course, these items may vary depending on the specific stock market simulator. After filling out all the items and reading the terms and conditions, you need to mark acceptance of the terms and conditions and create an account. Each new player is given a certain amount of virtual money for the wallet, such as $100,000.

Then you can proceed to buy shares. Wanting to make a purchase of shares of a specific company, press the “order” button. Then select the name of the selected company whose shares the player intends to buy. After that, you need to choose the number of shares you want to purchase. For example, it could be 1850 shares at a price of $5.20 each. In addition to the price limit, the player can set an order at any price, which will be executed immediately at any price.

Then you can choose for how long the order should be active. It can be, for example, 2 weeks. What about the activation limit? This is a feature for more experienced players. After entering the activation limit and the stock price reaches this limit, the player’s order will be activated. This tool can be used if you are using technical analysis, and only want to place a buy order when the stock price breaks through the level of the first resistance. This will be an announcement of further increases.

Online stock market simulator – why use it?

The following are reasons why you should use stock market simulators:

• The opportunity to gain general knowledge of investing. A large number of such platforms offer a really real education in asset management through access to a library and tutorials. With some brokers, there is also the opportunity to interact with the community via the Internet. They answer investment and technical questions.
• This is a safe space to learn the various mechanisms of portfolio construction and trading. It is the best place to make any basic investment mistakes, such as misspelling stock symbols or misunderstanding order types. Thus, the absence of fees is a very significant value that stock market games offer. So you can fill out the order sheet without worrying about losing your savings.
• One can check out new strategies and types of investments. When a player wants to expand his own investment repertoire, he should try out new techniques before applying them in the real world. This is very important especially for new strategies, such as options trading, and more advanced types of investing, such as futures or foreign currencies – forex.
• A stock market simulator can also show how important it is to keep emotions in check. Although investment decisions are less taxing when there is no real cash at stake, the human brain does not always fully assimilate this concept. The emotions a user experiences when playing a stock market simulator are a preview of what to expect when experiencing the inevitable ups and downs of the stock market.

Market news

The market is changing all the time, so it is important to be able to make the right decisions that concern personal finances with money and stocks. Investment apps designed to find good and reliable sources of financial news, are good for getting alerts on the phone on the latest news, so that the investor does not miss market trends, fluctuations for big market companies. It’s also helpful to find an investment app with other important updates and financial stories to stay up to date with the world and corporate events that affect the market.
How is the virtual world different from the real world?

It is important to remember that the real stock market world is ruled by emotions. In the virtual game, when there is no risk of losing real money, decision-making comes much easier.

Experienced investors believe that control over emotions and the ability to rationally analyze the situation is what determines the final success. It is in the virtual stock market that this can be learned.

Stock market games are based on stock prices of companies with which they are listed on the stock market, usually delayed by several minutes. The more developed simulators also take into account the volume of trading, which allows the maximum number of shares to be traded as on the real stock exchange.

Is the stock market game valuable?

A stock market simulator gives users a certain amount of money and a time horizon at the beginning of the game. The players who generate the highest profits from a technical point of view are the winners. However, there are no losers in this game. The funds are not real, so there is no risk, but the most valuable thing about this type of simulator is the experience gained, which provides novice investors with a lesson in securities trading. Everyone should try their hand at this type of simulator before deciding to invest in the real stock market, where real money is at stake.

Is it worth investing in the stock market?

It’s worth investing in the stock market, because compared to other forms of investment, there you can generate really big profits. If an investor puts his money in a well-chosen company at the right time, he will be able to really earn a lot. However, it takes nerves of steel, a common-sense approach, and the acceptance of increased investment risk to be able to undertake such an investment at all.

Playing the stock market is compared by some to gambling. However, it becomes one when an investor makes rash decisions under the influence of emotions, without analyzing market data.

Why invest in the stock market?

The primary motivation for people who play the stock market is the prospect of generating large profits. Why is it worth playing the stock market? Certainly for high income, the feeling of adrenaline and strong emotions. Stocks of listed companies can add variety to an investor’s portfolio, which should be strongly diversified.

There are many ways why investing in the stock market can be a good decision, including:

• the investor is free to choose the shares of companies that are listed on the stock exchange and in which to invest,
• thanks to the purchase of shares, the investor becomes part owner of a certain company and thus gains the right to dividends,
• can invest on the stock market not only in stocks, but also futures contacts, bonds or instruments based on raw materials,
• the investor independently decides which financial instruments to buy at a certain time and which are better to sell,
• the player has a chance to earn higher profits, but with a higher level of investment risk,
• the investor has an influence on the entire investment, thus reducing the risk, through the use of diversification.

Investing in the stock market offers great opportunities to invest in many different financial instruments and earn profits, as well as to be satisfied and experience incredible emotions.

Opportunities for investing in the stock market

Stocks are not the only financial instrument listed on the stock market, although it is identified with them. The available options for investing in the stock market are:

• Stocks – these are shares in auction companies, which allow you to earn when buying at a lower price and selling at a higher price, but also to benefit from the dividend paid, which is part of the company’s annual profit,
• Bonds – these are debt securities that can be issued by various issuers, including the Treasury, companies or local governments,
• Options – on the stock market they occur in the form of a contract in which the buyer obtains the right to buy or sell a specific underlying instrument. This can be, for example, shares on a specific date and at a fixed price,
• Investment certificates – these are securities in which the investor certifies the redemption of a share in an investment fund. Its price does not reflect the price of company or commodity prices,
• Futures contracts – are designed for sophisticated investors who are able to take more risk to get a high rate of return in a short period of time.

How much can you earn on the stock market?

The stock market offers a wide range of opportunities to invest and earn a really high rate of return, even over a small period of time, such as futures. However, it is important to remember that the chances of high returns go hand in hand with investment risk. You have to maneuver appropriately between buying and selling certain securities and pick the right time to take the right action.

Decisions on the stock market are often made under pressure. In such a case, it is best to keep a cool head and consider the profit and loss account, that is, whether the risk taken with a particular stock market investment is not disproportionately high to the possible profits earned.

For some people, the stock market has become a primary source of income and livelihood. For other investors, it is just an additional investment. How much can you earn on the stock market? Chances of earning a lot exist, but the investor must be aware of certain risks. Ignoring it can lead the investor to lose some or even all of his money.

How to limit losses?

First of all, risks when investing in the stock market cannot be avoided. However, it is worth taking certain steps that will result in limiting possible losses. Experienced people know ways to offset losses, which include:

• it is advisable to keep abreast of what is happening in the market, including the economic calendar and reports of stock market analysts,
• it is necessary to expand knowledge in stock market areas all the time,
• it is also worthwhile to act in accordance with a previously adopted and approved plan,
• on the other hand, diversification of the portfolio consists in investing in various financial instruments.
  Successful investment in the stock market consists of knowledge and experience, as well as the ability to properly interpret market information and notice the trend in the market. A very strong influence on making the right decisions in the stock market, is also to act without emotion. If the investor is able to keep a cool head, he will limit possible losses. Sometimes he has to wait out the dips to get a chance to earn more on the whole investment. If, fearing further losses, he begins to sell off all companies, he will certainly not earn. At most, he will reduce possible losses.

How to start investing in the stock market?

How to invest in the stock market? In order for an investor to start investing in selected stocks or other financial instruments, he must open an investment account. He can choose any brokerage firm or bank where he will take advantage of such an offer. After setting up a brokerage account in his name, he will be able to start investing.

First, the brokerage account must be credited with a certain amount of money that the investor wants to use for investing. It is worth remembering that you should never invest all the money you have. The investor should leave himself a certain margin of safety and savings for a black hour.

Before giving instructions to a broker that concern investing, you should think carefully about the strategy you have chosen. It is worth taking the time to learn about the product in which one intends to invest. The investor should also set achievable goals and then take on the challenge. It is best to decide to buy shares of companies or bonds of different types, consciously build a diversified portfolio and act according to a predetermined strategy.

Investing in the stock market for beginners

People who have never invested in the stock market before feel some apprehension and are afraid to take their first investment steps, which is perfectly natural. However, a beginner investor should not throw himself into the deep end and buy stocks right away. Perhaps a safer option would be to use financial instruments such as government or local government bonds. They are associated with low investment risk and have a predictable yield. Buying them, the investor is able to determine with a high degree of probability how much he will earn on them.

Admittedly, they give an insignificant profit, especially in comparison with an investment in shares of the largest listed companies, but it is a certain profit. Having already some knowledge of how the financial market works, an investor can start investing in stocks. It is worth choosing companies with a stable market position, which are growing and boast liquidity, as this allows the investor to earn quickly.

How to make money in the stock market? If an investor has never before invested in the stock market in products with a high level of risk, he should use the stock market simulator described above or a test account, where he will have virtual funds and will be able to try investing in conditions similar to those on the stock market. The profits and losses that are earned on the stock market are not real, so in practice the investor neither loses nor earns. Maybe they are to see if investing in the stock market is an activity for him.

How to minimize risks in the stock market?

First of all, it is necessary to accept that investing money in the stock market involves risks. An investor can minimize risks in the stock market by properly selecting products for the portfolio. The idea is that they should be diversified. The more diversified the investment portfolio, the lower the risk of capital loss. Diversification of the portfolio is to invest funds in different types of products, using different strategies.

In practice, the idea is to build your investment portfolio in such a way that there are shares of different companies, operating in diverse industries. In this way, even when the price of some stocks begins to fall sharply, others can make profits and balance losses, as their prices depend on the impact of the factors being evaluated.
Minimizing the risks associated with the existing risks in the stock market, it is important to be able to make a quick decision to close a loss-making transaction. The sooner this happens, the smaller the losses the investor will suffer and the easier it will be to make up for them later.

Using an online stock market simulator, it is advisable to play as if it were real money. If the player does not take it seriously, he will not learn to invest with real money. It is a good idea to be prepared before each session. It is also important to remember that the fact that it is virtual money does not change the market situation, which is a reflection of the actual state. Just after a short time of playing on the simulator, the user should work out his investment system. It is worth testing, trying and not being afraid of risk. The online stock market simulator has the advantage that it allows you to use many markets and financial instruments, not just stocks.

Investing in the stock market can be a side occupation or the main source of income. However, a stock market simulator will certainly help in successful investing, as it is able to teach investing without the risk of losing money. One of the biggest benefits that come from using an online stock market simulator is the ability to track your own progress and the profit and loss trends of stocks that interest you. All this without risking even a penny of your money. The stock market simulator allows you to select securities, make trades and track the results. Therefore, it is worth taking advantage of such tools, most of which are offered for free.