Learn To Invest Money Using A Simulator – Investopedia – Part 1

One of the best ways I have found to teach myself how to invest is by using an investing simulator. The thing that makes simulators great is play money. You can make all the mistakes you need to and not have to lose sleep at night – or worse, lose your retirement savings.

I have been using two simulators for over a year now and I have learned a good deal about how the stock market works. In this post I will show you my favorite of the two, Investopedia.

Investopedia was stared in 1999 by two guys who wanted to build an online financial dictionary. They grew way beyond that and were bought by Forbes Digital in 2007. There is a lot of financial information there but I have really only used the Simulator.

To get started in the Investopedia Simulator you join one or more “Games.” Each games has its own rules for what types of trading are allowed, stocks, options, shorting, etc. You can even set up your own game and set the rules the way you want. The games can be public, open to anyone, or you can make your game private and only invite your friends.

When you first sign up you are placed in the default game, currently Investopedia Game 2009 – No End. This game has fairly standard trading rules and pretty much allows all types of trading.

The Investopedia Game 2009 – No End starts you out with $100,000 in virtual cash. From there you can buy and sell stocks and try to make more virtual money. Other games start with different amounts.

I have found, like real world investing, the longer I use the simulator the more value I get from it. Some times I have gone a few months without looking at my portfolio. It is fun to come back and see what has done well and what has not.

As I learn more about trading/investing I can try new ideas. I can act on hunches (which is a no-no in the real world!!). The virtual aspect can be a draw back because I tend to do things I would not risk with real money. At this point I think this is a positive because I get to see the consequences of my choices.

Here is a brief video I made that will walk you though how to make your first stock trade on Investopedia. Sorry that it gets a little fuzzy at points. I am still learning how to use CamStudio.

Take a look at the Investopedia Simulator and help yourself learn how to invest money.