If there's one thing we're repetitive about OkBrokers, it's in advising you not to trade for real money until you're really ready. We are outrageous advocates of demo accounts and, also, what we will present to you in this article: stock exchange simulators.
Who else can least imagine what a simulator is to invest in the stockexchange : a platform that – through artificial intelligence – generates scenarios similar to those that occur in the real market, and that allows the user to trade with play money. Usually, the virtual capital they usually offer is around 10,000 euros.
They are able to replicate market movements and oscillations in various areas of the world, for example, Europe, Asia or the United States and, among the instruments that it allows to use to carry out this kind of training, are currencies, stocks, bonds, commodities, CFDs…
How to choose a bag simulator?
First of all, we need to clarify a question: it is not the same as a stock exchange simulator,that is, an independent platform or web that simulates the real market conditions; that a demo account of any online broker that, although it also tries to reproduce movements based on reality, what it does is, in some way, train future traders to learn how to manage their platform in the best possible way.
Having made this distinction, it must be the investor who decides which model he will be most comfortable in. Both are valid. Among the advantages of deciding on a demo account is that, if you are clear that once you start trading online with real money, youwill run it with a particular network broker – ergo, you know what it will be – , you can rehearse on the free account of the same. You can find examples in our guide to trading platforms with demo accounts.
Now yes, let's go with a number of criteria to choose the best bag simulator:
- It should offer as realistic a scenario as possible, in fact, it would be ideal if it allowed you to trade live data.
- That it's possible to invest fictionally with an amount similar to the amount you're going to put into play when you start really doing it.
- If you are clear about what type of product you are going to trade with, look for a stock exchange simulator or a demo account of a broker that has that instrument.
- In case you decide on a trading platform, look for a safe and reliable online broker.
How to use a bag simulator?
There is something that, however successful the stock exchange or trading simulatoris, will differentiate you from the real investment: the tension, the nerves, the moments of maximum stress in the face of decision making. Even if it offers a hyper-realistic environment, deep down you know that if you don't make the right decision, you're not going to lose money, and that necessarily adulterates the process.
Therefore, there are a number of guidelines that you have to follow when using a stock exchange simulator or a demo account of an online broker:
- Discipline: one of the main tips for using a bag simulator well is that you don't do something you wouldn't do with real money. Demand maximum discipline and keep your head cold as if your money were really at stake.
- Quantity: we have already said that the amount you must invest in the bagsimulator, even if it is virtually, must be similar to the one you intend to use in reality. In any case, we recommend not practicing with large amounts, since that will lead you to take risks without fear of running out of money (virtual) and real life is not.
- Trade with a plan:deep down all the tips are aimed at making the practice as realistic as possible. When you do network trading you have to have an investment plan, in demo accounts or stock exchange simulators, too.
Advantages of stock exchange simulators
- You have the option to try strategies without risk of losing real money.
- You will become familiar with the basics of investment,investor jargon, analytical tools, in short, with everything surrounding an activity such as the stock exchange or trading.
- You will have the opportunity to learn more about the behavior of the markets. The more realistic the simulator, of course.
- If choosing an online broker or with which financial instrument to trade is difficult for you, these simulators will allow you to try several to find the one that best suits your characteristics and pretensions.
- You'll learn to make decisions under pressure. This will never be like the one you'll have in a real investment, but it will test you.
- By simulating a real scenario, bag simulators will also give you access to statistics. And these will help you to try to interpret the movements in the market more correctly.