THE LEGACY OF GAMIFIED INVESTMENT PLATFORMS AND SIMULATORS: EXAMINING LONG-TERM RISK HABITUATION AMONG YOUTH IN FINANCIAL MARKETS.

Abstract

The increasing popularity of investment simulators and gamified brokerage platforms has transformed the way young individuals enter financial markets by making investing more accessible, interactive,and engaging. While these platforms have contributed significantly to financial inclusion and investorparticipation, concerns have emerged regarding their long-term influence on investment behaviour and risk perception. This study examines the lasting behavioural consequences of gamified investment platforms and stock market simulators, with particular emphasis on risk habituation among young investors. It investigates how gamified investing environments shape youth risk perception anddecision-making, assesses the transfer of behavioural patterns from simulated to real financial markets,and evaluates the effectiveness of existing regulatory and financial education initiatives in mitigatingassociated risks. Drawing on behavioural finance, habit formation theory, and financial socialisationtheory, the study synthesizes existing literature to explain how consequence-free investingenvironments reinforce overconfidence, speculative trading, and reduced sensitivity to financial losses.The findings suggest that repeated exposure to reward-based digital investing systems encouragesautomatic trading behaviours that persist beyond simulation environments and influence real-moneyinvestment decisions. These effects are amplified by gamification features such as achievement badges, leaderboards, social trading, push notifications, and commission-free trading, which prioritize engagement over informed decision-making.