Many brokers are offering you the use a free online trading simulator these days. But, they don’t do so out of the goodness of their hearts. They do so in the hopes that you will go from a weekend dabbler to a full-fledged paying customer.
In most instances, you are under no obligation to do so, unless the company you choose expects you to sign up for an account with them as a condition of allowing you to access their training platform.
No matter what, you stand to gain a lot by spending time using an online trading simulator.
The best of these trainers provides you with an excellent education in the fine art of online trading. This typically includes things like, a vast library filled with informational articles, tutorials, an online community who is there to answer your investing and technical questions, and demos.
A Safe Place to Learn
You started Driver’s Ed in the parking lot of your high school as you learned the basic mechanics of driving, this same theory applies to learning how to work the stock market. There is no better or safer place to learn how to work the markets than by using fake money in an online trading platform. You get to make all the rookie mistakes such as misunderstanding order types or mistyping ticker symbols, all in a place where you have absolutely no risk of losing any of your “real” money.
Going for a Test Drive
Even if you are an experienced investor, what better way to test drive new strategies without risk? Trying a new strategy in an atmosphere such as this also lets you do things like try out new investments such as the Forex Market, or perhaps futures and commodities, without having to worry about losing “real” money. It can be a fantastic way to develop and test drive new investing strategies without the fear and nerves that come with investing in online trading when you are using your own cash to play the markets.
The whole concept behind spending time using an online trading trainer is to give you the chance to learn how to invest, how to follow the market trends when to trade, when to hold, and how to spot trends and more. Even though you are “playing” with “fake” money, your brain doesn’t necessarily register this fact. It still sees the training platform as a living breathing organism and reacts as such.
It’s an excellent way to see how you will respond under the pressure of trying to make money working the markets, making snap decisions, and learning by your mistakes along the way. It also teaches you how to keep your emotions under control, even in the most trying of situations. Something that billionaire investor Warren Buffet says is a vital part of what goes into making a successful investor. By spending your time in an online trading trainer, you get a good idea of how you are going to react when you have real money invested, and the market is fluctuating up and down. Better to spend as much time as you can in a simulator before you start investing real money in the markets than jumping with both feet and risking losing your money.