In the current era of technology and digitalization, more people are interested in the stock market. With media influencers like Josh Brown and Jeff Rose, there is a good chance you have wanted to try your way into the stock market. However, the big problem is, are you willing to put your money on the line? This is where Stock market simulators come in!
Stock market simulators are software that is ditto copies of the real stock market on a virtual platform, but you do not have to put any money, so you can not lose anything in the real world. These platforms have multiple tools similar to those available in real stock trading platforms, such as market data, graphs, and predictions that give you a hands-on experience of what stock trading is like without the risk of losing everything.
Benefits of Simulators:
The greatest benefit of these virtual trading platforms is that it helps you try out various strategies without risk. In 2022 the internet is full of people advising on stock trading. Naturally, not everyone is correct. These platforms let you try different strategies and see what works for you. There is no restriction on the type of asset you want to trade. This could be Forex, Exchange-Traded funds (ETFs), individual stocks, and even commodities.
There are multiple virtual stock practicing apps and websites available on the net. Some are free, whereas others require a small fee. Following are some of the best trading platforms you can try out.
- Pilot Trading
Thinkorswim is a renowned platform created by a well-known brokerage company known as TD Ameritrade. It gives users a hands-on experience in the virtual stock market space. Along with trading, Thinkorswim also offers a variety of assets, including best-in-class tools and charts. To cap it all, signing up is very easy. All you need to do is sign up and you’re good to go. And the best part is Thinkorswm completely free to use.
Thinkorswim gives its users a wide array of assets, including stocks, currencies, options, ETFs, and futures. The company also offers bitcoin and may be on the road to introducing other cryptocurrencies. Thinkorswim also has a very easy-to-use interface. It was created by traders for traders. Therefore, if you are a beginner in stock trading you should give it a try.
TradeStation is yet another popular online broker for active traders. However, this platform is only free to use if you fulfill the following criteria:
- You keep an end-of-month equity balance of at least $2000 constant
- You complete at least five trades within the first twelve-month period of opening your account.
If you are a long-term investor or work with passive investments, then this may not be the right choice for you. Otherwise, it has some powerful tools worth trying out. Along with many other assets, Trade Station allows the trading of digital currencies. However, this feature is not supported as a segment of their virtual trading option. A big plus point of Trade Station is that it has multiple great community forums which enable new investors to connect with older, more experienced traders. This way, they not only get an insight into trading but also learn tips and tricks along with the dos and don’ts of various asset trading. Trade Station also supports an app that includes multiple tools required to implement trading strategies.
If you are a fan of day trading and want to try out some of your strategies in a risk-free way, Ninja Trader might be the appropriate choice for you. The company has a great simulator that allows you to trade using virtual money. What gives NinjaTrader an edge over the other platforms is, that it has a feature called “Turn the clock back.” this feature enables users to look at past performances by turning time back. Utilizing this technique you could see what your strategies would have resulted in in the past. “Turning the clock back” is not a common feature and many trading platforms do not offer access to it. Another unique factor about NinjaTrader is that it offers the trading of cryptocurrencies in its virtual account. The one downside to Ninja Trader is that it requires users to download its software.
Pilot trading is a company that bases its superiority over other trading companies on its claims of having a psychology-based algorithm that tells users when to buy or sell. It has a range of +100 which means you should buy, to -100 which means you should sell. To build up consumer confidence in their brand, pilot trading allows users to try their algorithm in the virtual world using paper money. This way, users do not lose cash and can see if the algorithm is fully functional. The method by which the Pilot algorithm tells users about the status of a stock is through numerical values and four circles. The numerical score gives an overall whether a stock should be bought or sold. The circles can either be colored or not. If they are colored the opportunity may be strong.
To conclude, a simulated stock market is a great way to test out your trading strategies as not only is it risk-free and stress-free, but it also gives a person some needed experience in the field that could prove to be very useful.
Q) Are stock market simulators accurate?
- Simulators are not a hundred percent accurate and can not be the same as real trading platforms. A reason for this is that they allow you to execute your trades at the precise price you want. This is not always the case in real-life trades
Q)Do professionals use paper trading
- Yes! While developing or testing strategies, even experienced traders use simulated stock markets.