Video: A Stock Trading Simulation

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Stock trading simulations allow students to invest imaginary money into the stock market in order to learn how the market works. Find out how stock trading simulations train business students without the consequences of losing money with information from a financial consultant in this free video on investments.

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Video Transcript

This is John Pinelli financial representative and we are going to be talking today about stock trading simulation. With the stock trading simulation you are basically using play money to invest in stocks that will track the market. It follows the market specifically and you are not using any actual money but you're pretending as if you had invested that money at a certain time and then you are watching tracking to see how that money grows over a period of time. So these sort of stock trading simulations are popular in schools. A lot of business schools use these stock simulations to train their students on how to trade stocks and getting them used to the market, getting them a feel for the market while teaching them a lot of important things about the market. But at the same time not having them risk any of their money financially or putting themselves in any kind of burden. So a stock simulation would be a great way to see how you would do in the market if you had that money and to see, to track your results to see potentially the possible gains that you can make and without actually investing any money of your own. When looking to participate in some sort of simulation I would say that you should do something, some sort of simulation on your own before purchasing a stock. Maybe track the stock for a few weeks, pretend as if you had bought the stock at a certain price. And then see if your predictions are right. See if the stock actually does go up, if it does go up how much money in real dollars you actually would have made or how much money in real dollars you actually would have made or how much money in real dollars you actually would have lost. This can be quite a wakeup call for a lot of people to see exactly what their money would have done if they would have invested it in this wake up call comes basically free of charge without actually putting any dollars on the line. If you look at CNBC they've actually, they do their million dollar portfolio challenge every year. And this enables people to participate in a contest, good environment. I think over five hundred thousand people participate in this contest every year so it's quite a significant amount of people. And it's a good way to compete to look at other people's picks for individual stocks and a great way to do so without actually putting a lot of your own money on the line. So stocks simulations are a great tool, great way to track stocks and a great way to see potentially how you could do in the market. So this is John Pinelli talking to you today about stock trading simulations.

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A Stock Trading Simulation

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