Mock Stock Trading (as in stock market simulations and stock games) are a great way to hone your stock trading strategy… without blowing your bank.
Mock stock trading is especially good for beginners who are just starting out. That’s because mock stock trading allows you to practice your approach to investing and asset management, without risking any of your real money. You can test drive your investment approach and it doesn’t matter if you crash!
If you have never heard of mock stock trading, or don’t know where you can find the best free stock trading games online, watch the video below:
Mock Stock Trading Video:
So you see mock stock trading plays an important role. And…
When you are still refining your approach to selecting and trading stocks, then having a practice brokerage account keeps you honest. If you track your stock picks on your own, outside of a stock picking game (like in an excel spreadsheet), you are likely to make mistakes in your record keeping.
One of the great things about mock stock trading games are that they keep track of your P and L for you… so you just have to worry about your stock ideas!
Who Can Benefit From Mock Stock Trading:
If you’re relatively young and still saving up money to trade stocks, then a mock stock trading game can definitely be of value to you. You are still able to test out your ideas while you build up your nest egg. It is also likely to keep you interested in working towards your savings goals. Plus if you’ve never been through the stock trading process, placing orders online in a mock stock trading simulator is a great way to learn how to trade stocks online.
Mock stock trading isn’t just for beginner investors though. If you are testing out a new strategy or asset class (like options or forex) then mock stock trading games can be a great way to iron out your approach without risking your hard-earned capital. When I started dabbling in options trading I did it first in a mock stock trading account (which saved me a lot of money).
Of course, mock stock trading simulators aren’t perfect…
A Mock Stock Trading Drawback
Of course mock stock trading isn’t perfect. One drawback of mock stock trading is that it’s not ever as emotionally intense as investing with real money. In the latter circumstance you are likely to be much more involved with your positions because you have real money on the line… and you probably don’t want to lose it.
On the other hand, when you are trading stocks in simulation (even though you obviously want to win) it’ still not as intense as putting your real money on the line. That said, if you take mock stock trading seriously and set some performance goals you can get a lot out of the experience.
So now I’m curious to ask you…
Have you ever benefited from mock stock trading?
Let me know in the comments below about your mock stock trading experiences…
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