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How to Perform Mock Stock Trading

How to Perform Mock Stock Trading

Stock trading has long been a method many have used in order to obtain great gains by investing, buying, selling, and trading. However, this method can be extremely risky, as global events, local events, weather, seasons, fluxuations in temperature or consumer interests, and hundreds of other factors can influence how well or poorly any given company performs, and these factors are often difficult to predict. Since most stock trading deals with hundreds or thousands of dollars at a time – or even more, in some cases – it is scary to put so much money out onto the market and know that it might wind up being completely lost. And for people new to the concept of stocks, it can be incredibly confusing and difficult to try to understand the various, seemingly unessential details that can make or break a trade. It is for these reasons that mock stock trading was created.

The way mock stock trading works is sort of like when elementary school classrooms set up mock economies using toy money. The students get a chance to see how making purchases in one area will effect other areas of the economy without anyone’s real money being spent or used in the process. In the same way, mock stock trading allows people to try out various strategies, methods, and plans for the stock market without ever using any of their own real money in said investments. This allows them to see how well their ideas would perform without actually risking their own money in the process.

The first step is to find a mock stock trading company. These can be found online, and some are at well-known sites such as Yahoo. Set up an account with the mock stock trading business, and then the testing can begin. 

The next step is to place an order. The website for mock stock trading will have a form which can be filled out to place the order. Mock trades can be made for currencies, such as US dollars or British pounds, or for consumables such as grains or meats, or for energies like oil. Take the time to try out a variety of commodities. Since no real money is involved, feel free to take risks and see what happens. This will provide a baseline understanding of how the market behaves so that, when real decisions are made to trade stocks, those decisions are as informed and based in reality as possible.

When finished with a particular commodity, the last step is to exit the order, ‘cashing out’ to see how much was made overall. This leaves a good amoutn of information which can be used to make the best decisions when the real stock trading begins.

If there is any risk in mock stock trading, it is that the mock order will perform very well during the mock trial, but an unforseen event (like a market crash) will cause the same commodities to perform at a poorer rate after the mock trial is over. However, barring such unforseen events, mock stock trading is a fairly reliable way to get a feel for how the market will actuall perform without having to take on the great risks associated with stock trading.

Photo courtesy of MojoBaer.

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