One of the most intimidating part about investing in the stock market is the unknown. Without any pervious experience in investing it’s quite overwhelming for someone to throw their hard earned money at something they do not fully understand. So how can we overcome this lack of confidence and experience? Stock Market Simulators.
Last semester I joined into the Messiah Colleges Stock Market Games through a website called investopedia. If you have never heard of them I strongly suggest you check them out. They are a great resource for investing, but furthermore they have a stock market simulator. The simulator copies exactly what the actual market is doing, but instead of using your own money to invest, you use virtual dollars. Simply put, everything is the same as it would be trading with a company like e-trade. There is commission fees, you have the ability to put stops and limits on trade, and you can even sell and buy stock options. If you are fearful about investing and are looking to get your feet wet, I couldn’t think of a better way to do it. Before I started playing around in the simulator I was investing in big companies, mutual funds, and ETF’s. Anything safe, and they I knew wouldn’t be high risk. But as the saying goes, “No risk, No reward.” This couldn’t be more true. My first week of “risky” investing I made over $200. The next week, I lost almost $250. This was mainly because I got cocky, I was over confidant in my abilities and did’t do thorough research on the companies I was investing with. Never the less, stock market simulators are an excellent way to get some experience with investing, and gain some confidence and skills. It could also be a great place to learn about new parts of the stock market like stock options, which is what I am currently doing. This gives me real world experience without the financial hardship of my mistakes.
I hope this blog post was informative, and helpful to all of you. Please check out investopia’s stock market simulator, and if you have any questions or comments please feel free to ask! Until next week, happy investing!