Learn How to Invest with Stock Simulators
Investing for Beginners
If you know what you are doing, investing your money in the stock market will give you a better return than keeping it in a savings account. But, the key to success is knowing what you are doing. When I was in high school, my economics teacher taught us how to invest in the stock market by giving us a quarter-long assignment. We were given a virtual amount of money that we were supposed to “invest” in the stock market. At the end of the three months, our grades were based on how much money we had earned or lost. It was a tedious process, recording everything in our notebooks and typing up a report at the end. Today, technology and the internet make it a lot easier to learn how to invest in the stock market with online investment simulators.
Beginner's Guides to the Stock Market
These simulators use pretend money, so you can practice investing without any risk. A good online stock simulator will offer resources like articles, newsletters, and tutorials to help you learn more about investments.
Investopedia began in 1999 as an online investing dictionary. In 2004, they created the Investopedia Stock Simulator that lets you practice your trading skills with virtual money. Before you start trading your virtual money, you should familiarize yourself with the different kinds of investments. Don’t know the difference between stocks and bonds? Or, maybe you think terms like “asset allocation strategies” sound like a foreign language. Before you know it, the resources at Investopedia will have you tossing the lingo around like it’s your native language.
Virtual Stock Exchange
Virtual Stock Exchange is a free, user-friendly, simulation trading game designed for individual, groups, or class activities. VSE allows you to practice trading free research tools and up-to-date stock market news. Manage your portfolio as you learn how to play the stock market. Once you start getting the hang of it, you can continue practicing your theories and ideas out on the VSE before trying them in the real exchange with real money.
Stocks Quest is a virtual trading site that is geared towards use in classroom environments and lesson planning. The entire site is easy to navigate and clearly worded, making it more user friendly for beginners and students. Like the other simulators, you must register with a valid email account, but it is free to use. Stocks Quest has a stock guide as reference, and offers contests players can join or set up themselves.
Learn & Practice Before You Invest
While it is great to start investing for you future and retirement as soon as possible, you want to know that you aren’t taking too many risks. Until you have a good idea of how to play the stock market, keep your money in a high-interest savings. Although the return won’t be as high as when trading stocks, it will be safe until you are ready.
Do you have experience with stock simulators or have other comments? Let us know by leaving a comment in the box at the bottom of the page.
Inside the New York Stock Exchange - Susan Lisovicz
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