Understanding how money and investment work is something that all of us should learn early in life, but for some people, investment is so foreign that they don’t know where to start. Even the concept of numbers is daunting to them. Fortunately, there are some ways to make money management fun and interesting. This is where an online stock market simulator can come in handy.
- The online stock simulator is an online program that simulates the stock market, allowing investors to try trading with almost no consequences.
- Most simulators provide approximately $100,000 in virtual currency for investors to play with.
- The investment simulator is suitable for adults who want to understand the ins and outs of trading, but it is also suitable for the classroom environment of students.
What is an online stock simulator?
The online stock simulator is a simple and easy-to-use program that can simulate the real operation of the stock market. Most simulators give users $100,000 in fake funds. From there, the player chooses the stocks to buy; most stocks are listed on the New York Stock Exchange (NYSE) and Nasdaq.
Most online stock simulators try to match real life situations as closely as possible. Therefore, many simulators provide users with the opportunity to buy, sell, short or trade options.
The best stock simulators also charge broker fees and commissions. These fees can significantly affect the bottom line of investors, and including these fees in simulated transactions helps users learn to take these fees into consideration when making purchasing decisions.
InvestingClue provides a stock market simulator that provides players with $100,000 in virtual cash to test their trading skills by competing with thousands of other traders.
Stock simulator in the classroom
When it comes to learning, people like games. When classroom assignments are related to real-world scenarios, students will also be better able to concentrate. This also applies to adults.
Investment simulators are often used in classroom environments, where students compete with each other to see which student or group of students can generate the most profit in his or her account by trading stocks and options. During the competition, students will also learn how to budget funds, use comparative mathematics, become part of a team, think critically and make quick decisions.
Henry Ellington, Monica Gordon and Joannie Fowlie, three experts in the field of education, explained in their book “Using Games and Simulations in the Classroom” (1998):
“Multidisciplinary exercises have an additional advantage because they can provide a situation in which participants must collaborate effectively to achieve a common goal. This type of interpersonal skills will be very useful later in life. It is important and constitutes the arena of education and training, where multidisciplinary stimulation and simulation/games are likely to be the only way to provide practical experience in a school or university environment.”
In the process, those who use investment simulators, whether students or adults, will understand the basics of finance, including basic terms of investment, such as commissions, short positions, and price-to-earnings ratios. Simulations can also make it easier to understand how the larger economic situation and business-related headlines affect the market and cause stock price changes.
Every good teacher knows that only by making learning interesting can you become a good learner. By using the online stock simulator, teachers can transform lessons about investment into real classroom activities, while adults can learn to invest in a real environment to develop useful skills that can be applied to real trading accounts. With luck, the simulator will allow beginners to hone their investment and trading skills in a simulated environment. This should help new traders start operations when they finally buy shares of real companies-and avoid some major losses due to lack of experience.