Trade The Markets At No Cost To You…

| July 7, 2015

paper tradingA Secret Way To Trade The Markets At Zero Cost…

Trading penny stocks is stressful.  You’ve got money on the line.  And a small mistake can cost you big.

It’s such a fear that many new traders won’t touch the markets.

But there’s a way to get experience without spending a fortune in losing trades.

I find it’s easier to learn to trade when you’re using someone else’s money. Or, in the case of free online stock market simulation games, fake money!

If you don’t have a ton of trading experience, this might be the perfect way to start off.

You can jump in and make mistakes… learn how to place trades, learn when to exit trades… you can get experience with fundamental and technical research.  All without risking a real dollar.

Many experts advise practicing when there’s no risk involved.

But you want to practice right… and I’ll show you how in a moment.

But first, let’s look at some Stock Market Simulation Tools.

Online Stock Market Simulation Tools

Many online tools are used in high school or college finance courses.  These simulation games provide a risk-free opportunity to gain valuable experience investing in stocks.

Frequently the sites give you a pre-established amount of money and asks you to invest in stocks over a certain period of time – usually, one, three, or six months. Depending on which site you use, you may be able to compete against other users for prizes and recognition.

There are some advantages to using these games.

Practice makes perfect… well, at least practice will go a long way to making you comfortable trading penny stocks.  Some of the biggest advantages of learning to trade with a stock market simulation tool include:

No risk – Above all else, stock market simulation tools allow you to trade risk-free. While that may not always cause you to invest as accurately as you would in real life, it does take the pressure off if you make a mistake. Instead of a bad investment costing you your retirement fund, it simply puts a dent in your self-esteem.

Learning strategies – A simulation game or tool is the perfect place to practice a new strategy or technique. Because the options are customizable, you can hone in on particular areas of investing and spend time developing a specific skill set.

Researching trends – It’s one thing to follow a stock by reading graphs and performing your own calculations, but it’s much more valuable to research a stock by seeing how its movements affect your portfolio. Stock market simulation games are perfect for conducting meticulous research.

Confidence building – If every trader is honest with themselves, they will admit that trading stocks is intimidating and scary in the beginning. Even with years under your belt, it can be mentally exhausting. Simulation games allow you to build confidence in a safe, controlled environment. With a little bit of focus, you can translate this confidence into real life investing.

Teaching children – Want your children to get involved with investing from an early age? You can let them practice – worry-free – with a stock market simulation tool. This allows them to learn in an environment that is forgiving and risk-free.

Competition – Everyone loves a little competition, and stock market simulation games provide the perfect amount. In addition to honing your own skills, you can challenge friends and colleagues to see who can earn the highest returns.

Given those benefits, you’d think that I’d recommend any type of market simulator out there.  Look, practice trading is great.  Back when I got started, I “paper traded” using a paper and pencil!

But if you want to get the most out of your practice, I only recommend one type of simulator.

The Best Market Simulator To Practice With

There are dozens of stock market simulation tools and games on the internet, and you can use any of them… but I recommend only one.

The only trading simulator I recommend using is the one that comes with your trading account.

Yes – you must go out and set up an account to trade stocks.  Then use their built in trade simulator.  Don’t use an “Online GAME”.  Don’t use a system not tied to a broker dealer or trading account.

Why would I tell you to go this way?

Think with the end in mind.  If you’re going to trade penny stocks, you want to learn in a real world setting.  If you use one of the “Online Games”, all you’ll get is a game.

Sure, you’ll know how to place a trade in the game… but not in real life.

You want this as real world as possible.

So use your built in simulator, most broker dealers now offer it.  You’ll sign-up, research stocks, chart stocks, trade stocks… just like you would in the real world.

Then when it comes time to really pull the trigger… You’ll be comfortable in your familiar surroundings.

One last tip… give yourself a deadline to move from “practice trading” to real trading.  You don’t want to spend your whole life on the sidelines… so give it a few months of practice… then jump in and start using real money.  Start small and take your time… before long, you’ll be a pro!

Tell me, do you use a simulator or “paper trade”?  Did you find it useful?

Good investing…

Brian Kent

Note:  If you’re interested in learning more about Brian Kent’s Penny Stock All-Stars premium service… and learning about the stocks we’re trading for profit… you can get the inside scoop on penny stocks here.

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Category: Trading Penny Stocks

About the Author ()

Brian Kent is the Editor for He also pens Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market's next Blue Chips.