Stock market simulator

and virtual stock trading

You can use stock market simulator as good tool for two important tasks.

First one is using stock simulator for testing of stock trading software and platform provided by selected broker. It can be one part of process which should lead to choosing best online broker for you.

It is good to use such simulator every day. Simulator of stock trading could be used for practical testing like how to enter stock orders, using different order type like stop orders, trailing stop orders. Some of these stock trading simulators also provide charting features so it is good to test them too.

This type of stock market trading simulator is often known as Demo platform or demo account.

Example of stock market trading simulator from discount online brokerage house Interactive Brokers

Another possibility is to use some software for virtual stock trading. You could test your ideas on historical data by online simulation of stock trading strategy.

You have to define conditions describing your own stock trading strategy and put them into stock trading simulator. Such stock trading simulators could be integrated also into analytic software.

Amibroker has also such feature which allows you to define your stock trading strategy and then run virtual stock trading simulation on historical data to check how such strategy worked in the past. Although past results do not guarantee future profits, if you will see that your strategy worked in the past , you chances to be profitable in the future are much better.

Such online simulation of stock trading is known as backtesting. Here is sample report of backtesting in Amibroker:

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