Sometimes know as paper or fantasy trading, virtual stock trading is an online stock market simulator game. This system enables a newbie trader to know the basics of the market. If well used, it can reduce the potential for losing money when one starts to trade the markets.
Generally, most websites that have a simulator trading platform also have a real trading platform where one can buy and sell shares at a profit. This platform is usually similar to the fantasy one except that the virtual one is not real. There are also websites that have fantasy markets from which one can actually profit from. Through these sites, one can put in seed money just like the real markets.
In general, these platforms use statistical analysis to determine the prices of a given stock at any given time. There are others websites that use actual feeds from the market expect that you are now trading virtually. To make profit in most virtual platforms, you must be able to analyze the prices and determine if the prices will rise or fall.
You can use indicators such as trends, candlesticks and moving averages to determine whether prices will move up or down. Some systems have these indicators incorporated in their platform; all you have to do is only apply the desired one. Knowing how to use these indicators will determine whether you make some profits or not.
These simulators will most likely prepare you for trading in the real market. It should be noted that the game is completely different where real money is involved. When trading with real money, fear and greed usually tend to cloud your judgment
A major difference between these two systems is that in the real thing, real money is involved while in virtual one, virtual money is involved. Profits and loss you make when trading fantasy systems are not real. Mostly, the fantasy platform will give seed money to trade with, usually not real money.
The similarity between the two systems is that most strategies that work when trading virtual also work in the real market. You'll find that a number of websites that are involved in trading stocks online use the same platform in trading both real and virtual stocks. This is usually done to accustom the traders to the system before they start to trade the real market.
Trading the virtual system will teach you several tricks which you can apply in real trading and make profits. The system will teach you how to use money management techniques which are vital if you are to profit in this market. You also learn to use fundamental analysis which you can use to determine what direction prices will move.
It is however important to note that trading in stocks involves a substantial amount of risk. You should only trade with money that can afford to lose. You should do fantasy trading for sometime before you can venture into online market. This is of importance and will save you from heart ache and financial woes.
Generally, most websites that have a simulator trading platform also have a real trading platform where one can buy and sell shares at a profit. This platform is usually similar to the fantasy one except that the virtual one is not real. There are also websites that have fantasy markets from which one can actually profit from. Through these sites, one can put in seed money just like the real markets.
In general, these platforms use statistical analysis to determine the prices of a given stock at any given time. There are others websites that use actual feeds from the market expect that you are now trading virtually. To make profit in most virtual platforms, you must be able to analyze the prices and determine if the prices will rise or fall.
You can use indicators such as trends, candlesticks and moving averages to determine whether prices will move up or down. Some systems have these indicators incorporated in their platform; all you have to do is only apply the desired one. Knowing how to use these indicators will determine whether you make some profits or not.
These simulators will most likely prepare you for trading in the real market. It should be noted that the game is completely different where real money is involved. When trading with real money, fear and greed usually tend to cloud your judgment
A major difference between these two systems is that in the real thing, real money is involved while in virtual one, virtual money is involved. Profits and loss you make when trading fantasy systems are not real. Mostly, the fantasy platform will give seed money to trade with, usually not real money.
The similarity between the two systems is that most strategies that work when trading virtual also work in the real market. You'll find that a number of websites that are involved in trading stocks online use the same platform in trading both real and virtual stocks. This is usually done to accustom the traders to the system before they start to trade the real market.
Trading the virtual system will teach you several tricks which you can apply in real trading and make profits. The system will teach you how to use money management techniques which are vital if you are to profit in this market. You also learn to use fundamental analysis which you can use to determine what direction prices will move.
It is however important to note that trading in stocks involves a substantial amount of risk. You should only trade with money that can afford to lose. You should do fantasy trading for sometime before you can venture into online market. This is of importance and will save you from heart ache and financial woes.
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