Virtual stock exchange is a simulator game where you pretend to invest real money in shares. Mostly, you will be competing against other fantasy traders. In most sites you will be able to see your standings relative to the standings of other players. One of the best things about these games is also one of its worst things. If you win thousands of dollars you win nothing. Also, if you lose thousands of dollars you lose nothing.
Most techniques that are applied in stock market trading to gain profits are also applicable in paper trading. The essence of these games is to give you the trader some good trading experience before you can venture into the markets. You also get to learn tricks and tactics that can see you make some good profits in trading stocks.
Most sites usually give their players virtual seed money which they use to invest. The money could be predetermined or you could select your desired start up amount. Basically, most of the fantasy trading websites are usually easy to joint; you do not have to pay anything. You will however find a number of websites that allow their players to seed in real money maybe ten or twenty dollars. These sites offer payment if you make profits.
Basically, your portfolio rises depending on whether the stock you bought is doing well or not. You may opt to play against your friends or even join the public platform. Most of these sites usually portray the prices as they appear in the stock market . You do not have to log in to know how your stocks are doing. You can just watch the news and you will know whether you are making profit or lose.
Other paper markets use statistical analysis to determine the prices. These prices do not reflect what is happening in the real market though they may bare names of real companies and firms. In most instances, you will find that fantasy markets that do these also allow their traders to profit from their trades.
To make virtual profits in these websites, you must be able to analyze the markets and know when to enter or exit trades. Most of these sites offer analysis tool that you may use to determine the price movement. Of course you become good using any of these tools with time. These sites also offer their members the latest news updates to help them with fundamental analysis.
Fundamental analysis is a way of analyzing the market in regards to the daily happenings. For instance, if a company was to report that it is struggling with debt, then this will signal most traders that prices are about to fall. The right thing to do would be to exit the share in question. With time this kind of training prepares you a great deal for the markets.
It is important to understand that trading in shares carries a substantial amount of risk and is not advisable to all investors. You may receive all the training you can get in the virtual stock exchange but things are different when real money is involved. In most cases, you will find brokers advertising in the fantasy trading website. You can work with these brokers once you decide to join the real thing.