How to become a professional investor through simulation stock trading

So you have a friend that seems to be a wiz at stock trading, and now your interest in piqued. The down side is, you don’t know anything about stocks but would like to know more. Before you go bellying up to the trading center, you should check out simulation stock trading to gain the knowledge you need for the real world.

The beauty of the virtual world is that it can seem like the genuine article, but if you have a problem, you don’t have to pay the consequence. There are a number of simulation stock trading sites that will let you cut your teeth and learn the ropes. The purpose is not mad gambling, or crazed risk taking; instead you should take it seriously and treat the situation like it’s really your money. The terminologies may sound odd to you at first, but as you slowly get involved in the investment game, they will begin to make sense.

Simulation stock trading sites usually have tips for beginners and the types of strategies that you find in real life. Many of the sites charge for membership but there are a few quality sites that let you join in at no cost. Typically there are new investment games each month and some have prizes for those that prove the smartest investing and ergo make the most money. Many have real market quotes so your participation is as close to reality as possible. Some colleges and universities are including simulation stock trading as part of the curriculum. The education will not only include the finance or accounting students, but are also included in business and statistics classes.

Once you register you can hone your skills and begin learning about the types of trading, include: stocks and indexes, Penny Stocks, Pink Sheet Stocks, Mutual Funds and Short Selling. There are usually beginner sessions that review all the various investment concepts and levels, along with a virtual classroom environment for the pros and cons of each type of trading.

A good simulation stock program will not only let you learn about the market you currently exist in but the various types of markets that sway with the economy. Your investments will vary depending upon the market and the portfolio that you will be creating.

A major portion of the learning process will be in the risk management side. If you have worked in a corporation that had a risk management department, you know that their experience and advice often plays a major role in the potential directions and changes a company will make. This is the same for trading. Risk management will give you the ability to make good judgment calls, understand the risk to reward ratios, be able to identify entry and exit points of investing and when to realize it’s time to cut the losses.

Any good simulation stock trading site will also prepare you by introducing you to the type of ongoing research you will need to do. This might include the most informative enewsletters, periodicals and research sites.

The electronic world that we live in offers even more options for receiving your updates. You can get the information sent to you on your cell phone as well as iPod.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.