As aspiring investors, to call ourselves owners of even a fraction of giants like Apple, Nike or Gucci surely would be considered one of our wildest dreams. While it might seem like a fairytale to many, it is quite possible to own equity in almost any brand you can think of by investing in the stock market. A stock market can also be called a “share market” or “equity market” as companies seek investment through this market and they offer a share or equity of their company in return. Not only companies and investors themselves can also trade through the market by selling or buying stocks from one another. Since its establishment, the stock market has been one of the most popular investment options for people of all ages and backgrounds. The primary attraction of the stock exchange would be the fluidity and flexibility that the market offers in terms of investment and trade. And for small, medium, or large businesses, it is an essential mean of securing investment to upgrade and grow their company exponentially. That being said, the functions of this market are fairly complex and can be out of the grasp of a beginner. And like any other investment, putting your money in this basket also comes with a set of risks. And this is where stock market simulators come into play. These simulators function on a realistic demonstration of the actual share market through which beginners can learn and amend their mistakes to go forth for a more secure and confident investment in the real stock market.
As a young investor, it is quite possible for you to make early mistakes in the complex world of the stock exchange. Investing in the stock market does not come without challenges. Be it the infamous Great Crash of the New York Stock Exchange, commonly known as “Black Thursday,” or the recent crash of the Bangladeshi Stock Market in 2011, such devastating incidents have demotivated a lot of people to put their money in the stock market. Plus, such incidents have generated a need among investors to be more conscious and well-informed beforehand regarding the potential challenges of investing in the stock market. To cater to that need, a number of platforms have come up with stock market simulators in order to give possible investors a practical taste of the real deal. A stock market simulator is a virtual and gamified version of the real stock market where novice investors can invest with fake money and stocks. By doing so, they get hands-on experience and learn different tools & strategies of the market, which helps them to be better prepared for real-world investment. Some simulators are based on a full-fledged game with a storyline, whereas others are a quasi-version of a stock market with fake money and demo stocks.
Step One: Laying the Foundation
Before you embark upon your investment journey, it is imperative to have a sound understanding of different terms and strategies regarding the share market. To put it simply, you need to know how a stock market actually functions. By using stock market simulators, you can get your hands on all the key information you need to know in one place in an organised manner to help you familiarise yourself with the stock market. Some platforms offer introductory courses, whereas simulation-based games look to stack the information within initial gameplay. The simulator is a great source to solidify your basic knowledge of the functions of the stock market.
Step Two: Learn through Practice
One might feel that they are ready to invest once they have had a basic understanding of the stock market. However, it can be argued if that is the wisest thing to do. Forming a bookish knowledge of the stock market does not necessarily make you ready to invest successfully in the stock market; rather, it should be viewed as the first step in the right direction. In the real world, things might happen quite differently than you anticipate based on your knowledge. Therefore, to continue your journey toward becoming a successful investor, it is crucial for you to apply and test your knowledge. That is why stock market simulators offer you the opportunity to invest and trade with fake money on demo stocks to see if you are heading in the right direction. Practising through the simulators allows you to learn from your mistakes, better anticipate the fluidity of such a dynamic market, and gives you practical experience dealing with different brokers. It also helps you to be better prepared for different scenarios that you are bound to face in real life. The value that one extracts by practising in simulators can be compared to nothing in the making of a successful stock market investor.
Step Three: Be Part of a Community
Knowledge and information are two of the most valuable assets to have in the fast-growing world of the 21st century. The simulators offer you the opportunity to be a part of their virtual communities consisting of like-minded investors and experts to ensure you have access to an ever-growing forum of knowledge and information on stock markets. Through these communities, you can catch the latest action regarding the share market, participate in discussions within the forum and forge a strong network with educated investors. This would help you to capitalise on promising opportunities and provide you with a support group in terms of risky or unsure.
Author- Sadman Bin Ahsan
