What is a stock market simulator and how does it work?

What is a stock market simulator, how does it work and what is it for?
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Are you thinking of investing in the stock market and don't know where to start? Are you afraid of putting money in the stock market and losing it? Don't worry, these are very common questions that have a solution: stock market simulators. The process of investing in the stock market usually requires strong knowledge and experience to control risk and make the right decisions at the right time. That is why a virtual stock market simulator can become a fundamental tool to start trading securities by eliminating the danger.

In this guide I will explain what they are, the advantages they have and the best stock market simulators on the market.

Investing in the stock market is the dream of many people who see the stock market as an opportunity to earn extra money and change their lives forever.

The problem

The problem is that almost nobody knows what the steps to follow in this complicated and volatile world are, since it does not only consist of buying shares or securities at low prices and waiting for them to be quoted to sell them at a higher cost (it also encompasses another series of financial secrets and intentions to dominate this field as if it were the remote control of your television). In this aspect, with the stock market simulators you will not only learn how to manage in this field, but also those essential aspects to obtain excellent performance.

It is no longer necessary to experiment in the stock market with your life savings, exposing you to be an easy prey for unscrupulous swindlers or brokers, who will take advantage of your ignorance and inexperience to make you buy junk bonds or put your money in vulture funds.

A stock market simulator allows you to perfect your investment techniques, regardless of your level of knowledge in money management and investment execution, eliminate any danger in stock market operations and find real-time information on the prices of your assets and the behaviour of the markets.

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What is a stock market simulator, how does it work and what is it for

A stock market simulator is a virtual platform that functions as a kind of "stock house". The user becomes a trader or broker (according to the stock market term), who has an economic fund as capital to start managing his assets.

money used in the investments in this platform is fictitious, giving the opportunity to the cybernauts to experiment in the stock market but without endangering their financial integrity. The stock market simulators have a very unique web design, which allows everyone to access and navigate them with total ease.

Every profession is an art and investing in the stock market is no exception. Those who work as brokers have a high academic level, as well as a vast training in the stock market. Many have polished up over the years, trained by experience with previous investments, which were a before and after in their professional career.

Stock brokerage is one of the many professions that requires a previous learning process, where it is necessary that the prospects are subjected to pilot experiences, through simulations to weigh all kinds of scenarios or situations that may arise.

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In order to avoid this type of incident, the use of stock market simulators is insisted on as a training strategy. They provide the possibility of entering the stock market and learning based on mistakes or successes but without any economic cost. In the same way, you will also be able to know all the current information on the behavior of the markets and world economies in real time, which will guide you in notions to make successful transactions.

stock market simulator

You must always take risks as part of a brokerage strategy to obtain a high return, but you must also consider certain risks as a way of shielding that capital which is so valuable to us.

The economic costs of failed operations do not have to be assumed or minimized, making use of stock market simulators.

Many people conceive trading as acquiring financial assets to obtain profits at the change of value in the market. However, this goes beyond this because it requires a comprehensive learning process, where they must not only know about banking and finance but also learn to control their emotions, as well as manage risks.


Advantages of using trading simulators to invest in the stock market

If you think that by using the trading simulator, you're going to waste your time, you're really wrong. Maybe you think that because the simulator is not exactly the same as real life, it's no use to you. You may also be deterred by the fact that in the trading simulator, no matter how much you win, you will not get any money for your good moves.

This simulator is not only used by beginners who are in the training phase. These simulators are used by a lot of really advanced professionals in the world of financial trading, as they use them to try out different trading strategies.

It is important that if you are going to enter this lucrative world, the stock market simulator is present throughout your professional career as a trader. It is especially relevant during the training stage.

Getting familiar with the trading platform: It is essential that you learn to drive the trading platform, as if it were your everyday car. This will not only give you more cunning to make your trades, but also gives you a higher level of security to avoid making unforgivable mistakes.

Going deeply into your work tool will be a vital element to develop a successful trading, due to know all its functions as well as what are the positive or negative aspects in simulated mode.

Study the markets:

Analyzing the markets together with their behavior is one of the many advantages offered by stock market simulators. Here you can, as an online broker, perform such an action in demo mode. It is no longer necessary to have to invest ridiculous amounts in an intriguing way to see if they give the expected returns or we will see the money vanish at the stroke of a pen. The practice of stock analysis will allow you to learn how to work with charts and technical indicators of results.

It puts you to the test as a stockbroker:

Knowing how a broker feels in the daily life of the stock exchanges along with the services he provides is possible with these stock simulation platforms. To understand others, you have to put yourself in their shoes, says a popular saying of our grandmothers, which becomes ideal for this field.

With the stock market simulators you can visualize how far you can trust as a broker in the markets or the opinion of other colleagues. In the same way, almost classified data is revealed until a few years ago such as the internal functioning of the houses and/or stock exchanges and the commissions they earn for each transaction or service provided.

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Learning to decide about trading:

Working properly on your demo account as if it were real is necessary for future success as an online broker. Trading with these trading simulators will be the beginning of an arduous learning process.

This consists of determining what is most suitable in risk situations in the stock markets, using your common sense to make wise decisions with a high level of assertiveness. Knowing what a true diligent trader does is the question we ask ourselves in these cases, which can be answered by putting it into practice in the stock market simulators.

Testing new trading strategies:

Testing something before you use it is very common. We apply it for the goods and products we consume daily and even more so for investments. Every day there are new trading trends, which need to be tested in simulation mode to know their results and test their real effectiveness, considering that in the stock markets a lot of money is at stake as well as the fate of many individuals both in particular and in group.

Testing these new strategies is one of the functions of stock market simulators, which is used even by the most experienced brokers. It is not only learning and knowing how far we are able to go in the financial world, but also experimenting with other alternative methods to those we use.

You get statistics:

Acquiring data about the behavior of the economic markets in all their splendor is something that has no price for a stockbroker. The stock market simulators give you the possibility of knowing in real time those statistics that are as necessary as they are essential to know what steps we will take in the next financial operations. This can be said to be one of the best advantages of stock market simulators, because it allows you to establish a performance guide and determine your weaknesses as strengths before starting with a real account. An operation purified of vices and bad behaviors as well as adjusted to our requirements, will contribute to qualify a unique style of trading.

Take your training to the highest level: The virtual simulator will be your school to test yourself in the trading world, because it will allow you to obtain a kind of experimental training, where you will learn to control your emotions to move in the best way in this very volatile world. If you decide to hire a broker or a stockbroker to make your savings grow, you will be able to establish a control of his movements as well as the services he will provide you, considering that it is necessary to check how much he combines with what you require.

Differences between a stock market simulator and a real trading account

The stock market simulators are mainly used to start the training of those who want to enter the world of trading, while in the real life stock market operations, is where you have to apply that learned knowledge. However, although they have many similarities, these two possibilities have enough differences to take them into account. Mainly you must take into account that in the simulator, there is no risk, simply learn about the world of trading, know possible strategies or handle the different options of different markets, but always playing with virtual money. The real world is more serious, every euro you invest can be lost, so before moving to real trading, you should be sure that the money you want to invest, you can afford to lose it. If so, go ahead

In the stock market simulator, investors learn for free. In a real trading account, each investor accepts the risk of losing money for every financial transaction made.

The stock market simulator allows you to improve your knowledge and control of the markets, trying out different strategies without running any risk. In real trading, you are trading in a more accurate and true to life scenario, as it is reality, but you must take into account the risk involved.

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apart from not assuming any economic risk, you can count on the fact that most of them are freely available and totally free. For a real trading operation, you need a strong investment of money, since traders play a lot of money in each operation.


In the stock market simulator you can test your skills, knowledge and experience as a trader, with the aim of knowing what your level is or where you are to move to the next level, real trading. When you reach that point, every financial move must be precise, as there is a high risk of losing everything you have invested.

knowledge and experience as a trader, with the aim of knowing what your level is or where you are to move to the next level, the real trading. When you reach that point, every financial move must be precise, as there is a high risk of losing everything you have invested.

In the trading simulator you will find every financial movement a fun and exciting activity. When the money you are playing for is real and there is a risk of losing it, it is a little more overwhelming.

Emotions change along with the level of discipline. It should be noted that this is a formative testing stage, where emotional skills are forged to develop in the trading world. Dealing with each and every function of these stock market simulators is the key to performing all the trader's skills successfully.

The level of capital is different. It should be taken into account that this can cause a total disorientation of the trainee about the money in the account, bypassing the thorough management that he must perform on these funds.

Tips and tricks for the correct use of a stock market simulator

Although stock market simulators give you a lot of information about how to trade in different financial markets, how to know the different strategies that can be carried out and many more things, they do not tell you different tricks that you should take into account to apply in these same simulators.

For this reason, I have prepared a list with different tips to keep in mind when you start playing with a stock market simulator. If you take into account this information that I bring to you, added to everything you are able to learn in these simulators, I am sure you will get the most out of the one you decide to use, and most likely you will become a successful trader in a while.


Start small:

With small numbers to get to know how the stock market moves and where the opportunities to get the best performance are located. Starting with so much money can become an obstacle in the formation process, because we would be ignoring a fundamental part such as having a notion of risk control.

Avoiding irresponsible behavior:

it is necessary to emphasize that operations in the financial market should be carried out in a focused manner and not for the simple pleasure of experimenting as if it were a simple test. Regardless of whether the money is fictitious or real, this type of irresponsible behavior should be avoided, justifying each entry and exit to keep a precise control over what is invested and whether it is generating profitability or not.

Test all the possibilities:

it must be taken into account that this is a stage of formative tests, where the emotional aptitudes are forged to develop in the trading world. Treating each and every one of the functions of these stock market simulators with respect is the key to realizing all the trader's skills successfully.

Always keep in mind the "Stop Loss" concept:

The "Stop Loss" is an instruction order to stop investments at the moment of sudden changes in the market, which are against our interests. It refers to a kind of closing to register losses and to establish a ceiling for them. In this process the operations are closed to redefine the trading strategy being executed.

Working with discipline:

or we must deny that these platforms are fun but their primary objective is to forge masterful skills in the stock market, making it clear that it is not about playing at being a stock trader for a day.

Manage your emotions:

Not calculating the risk in every trade is a big mistake, which can lead to bankruptcy in a flash if it's a real trade. Remember that the control of emotions is essential and let your "instinct" to believe in luck, will only bring bad times.

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