Sometimes know as paper or fantasy trading, virtual stock trading is an online stock market simulator game. This system enables a newbie trader to know the basics of the market. If well used, it can reduce the potential for losing money when one starts to trade the markets.
Generally, most websites that have a simulator trading platform also have a real trading platform where one can buy and sell shares at a profit. This platform is usually similar to the fantasy one except that the virtual one is not real. There are also websites that have fantasy markets from which one can actually profit from. Through these sites, one can put in seed money just like the real markets.
The method for determining the price in the fantasy trading system is usually statistical. There are instances where the fantasy market actually simulates real prices as they appear on the online stock exchange. To make money, a trader will analyze the price movement and use the provided indicators to determine where to cash in. Knowing how to use the indicators in a major determinant on whether you will make profit or loss on the virtual market.
Most fantasy trading systems have a number of indicators that will assist in technical analysis. Some of the most common indicators available include candlesticks, trend and moving averages. Knowing how to use these technical analysis indicators will be vital in helping you earn profits.
This market will potentially prepare you for the real thing. As much as this can help you profit, the case is completely different where real money is involved. Greed and fear are emotions that are real when it comes to trading shares.
The money aspect is the biggest difference when comparing these two trading systems. Profits or loss gained in fantasy trading are not real and do not actually exist. Also the seed money you use to trade is not real in paper trading. You will of course have to seed in some amount if you are to trade the real stocks.
The similarity between the two systems is that most strategies that work when trading virtual also work in the real market. You'll find that a number of websites that are involved in trading stocks online use the same platform in trading both real and virtual stocks. This is usually done to accustom the traders to the system before they start to trade the real market.
Through the fantasy system, you will improve your trading and will be on the right track to making profit. The system will train you on various techniques that will help you make money once you join the real markets. Some common features you will learn include fundamental analysis and money management strategies to protect you from loss.
It is however important to note that trading in stocks involves a substantial amount of risk. You should only trade with money that can afford to lose. You should do fantasy trading for sometime before you can venture into online market. This is of importance and will save you from heart ache and financial woes.
Generally, most websites that have a simulator trading platform also have a real trading platform where one can buy and sell shares at a profit. This platform is usually similar to the fantasy one except that the virtual one is not real. There are also websites that have fantasy markets from which one can actually profit from. Through these sites, one can put in seed money just like the real markets.
The method for determining the price in the fantasy trading system is usually statistical. There are instances where the fantasy market actually simulates real prices as they appear on the online stock exchange. To make money, a trader will analyze the price movement and use the provided indicators to determine where to cash in. Knowing how to use the indicators in a major determinant on whether you will make profit or loss on the virtual market.
Most fantasy trading systems have a number of indicators that will assist in technical analysis. Some of the most common indicators available include candlesticks, trend and moving averages. Knowing how to use these technical analysis indicators will be vital in helping you earn profits.
This market will potentially prepare you for the real thing. As much as this can help you profit, the case is completely different where real money is involved. Greed and fear are emotions that are real when it comes to trading shares.
The money aspect is the biggest difference when comparing these two trading systems. Profits or loss gained in fantasy trading are not real and do not actually exist. Also the seed money you use to trade is not real in paper trading. You will of course have to seed in some amount if you are to trade the real stocks.
The similarity between the two systems is that most strategies that work when trading virtual also work in the real market. You'll find that a number of websites that are involved in trading stocks online use the same platform in trading both real and virtual stocks. This is usually done to accustom the traders to the system before they start to trade the real market.
Through the fantasy system, you will improve your trading and will be on the right track to making profit. The system will train you on various techniques that will help you make money once you join the real markets. Some common features you will learn include fundamental analysis and money management strategies to protect you from loss.
It is however important to note that trading in stocks involves a substantial amount of risk. You should only trade with money that can afford to lose. You should do fantasy trading for sometime before you can venture into online market. This is of importance and will save you from heart ache and financial woes.
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