KNOWING ABOUT VIRTUAL TRADING – BEST STOCK VIRTUAL TRADING PLATFORM FOR BEGINNERS
It is a common saying that says practice makes a man perfect. But how does this saying goes with the stock market, many of the traders start trading by taking tips and tricks from family and friends. Trading is an art and one needs to master this art. Traders generally open the trading and Demat account in a hurry and start trading, they sometimes lose their hard-earned money that could be used wisely instead. So, to make this practice work in the stock market, virtual trading can be done. Virtual trading is the same as trading. The only difference is that in virtual trading, the real money is not used but the virtual money is used.
As an amateur investor who has just started trading in the stock market, knows that stock market trading involves huge risk. To minimize this risk, it is important to use virtual trading programs where obviously risk cannot be removed completely but could be minimized. It is always a good idea to learn before you jump into the immense stream of business.
Benefits of Virtual Trading for beginners
- One can learn in a virtual trading platform and can learn from the mistakes from the virtual market and not repeat in the real stock market.
- It helps the traders or investors learn the actual process of trading.
- The newbies learn a lot through this feature of virtual trading.
- The virtual trading market helps to minimize the risk that is associated with trading.
- As a human, whenever the hard earned money is lost it hurts a lot, therefore, in the virtual market the virtual money is used and not the real money. This virtual money helps in not losing the real money and uses the virtual money to learn trading.
- This tool is great for beginners, as they can practice before trading in the real market.
- It duplicates features of a live stock market on a computer so that a would-be investor can practice trading stocks without any financial risk.
- Also do not need to go through any legal documentation process to open your account.
HOW DOES VIRTUAL MARKET WORKS?
The virtual platforms providing the virtual trading facilities are known as Stock Stimulators.
Below are the steps to be followed by stock stimulators:
- Open an account on a virtual trading app or website and register yourself to stock stimulators.
- Once the registration is done, you will get the virtual money
- You can utilize the amount to buy and sell the shares.
- Over the next few weeks, you will learn how to function in the stock market.
- When you think and become confident about your skills and potential, you may have developed gradually; then you can open a real trading account and start investing in the stock market with your real money.
DRAWBACKS OF VIRTUAL TRADING
- Virtual trading does not help to build a risk management system.
- Trade is unrealistic.
- Virtual stock stimulators provide limited options and do not give access to all the trading parameters.
- Trading virtually does not show changes in the external environment.
Best Virtual Trading Platform for Indian Stock Market
Here are the Top 7 Virtual Trading Platforms for beginners, that are considered to be the best for Indian Stock Market:
- Dalal Street
- Chart Mantra
- Wall Street Survivor
- Market Watch
CONCLUSION – VIRTAUL TRADING
Stock market investors are good for beginners, but it cannot replace the original market scenario. Virtual trading is necessary to upkeep the confidence. Virtual stock trading in India is an excellent way to learn the basics of trading in the stock market. Using these platforms, you can try different investment/trading strategies without any fear of losing your real money. It’s always advisable to try paper trading (virtual stock trading) for a few weeks before directly jumping into the market.
Virtual trading is the most preferred tool for education on share market and stock exchange. An investor can implement various investment and trading strategies without the fear of losing. Premium Virtual trading platforms in India focuses on Investor and Trader skill enhancement on Stock investing. Technical Analysis and Derivatives Trading, Financial Planning and Wealth Management are all that can be learned by using Virtual trading.