Want to Learn to Trade Stocks?
Ever want to make money with the stock market? Not sure you can? With Paper Trading, you can buy "fake" stocks or manage a portfolio of shares and see if you can earn money without losing a real cent more...
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How to Paper Trade Stocks
Stock Paper Trading is simply making an imaginary list or portfolio of stocks, tracking their
prices, and "buying" and "selling" them as if they were real stocks.
Why Paper Trade Stocks?
Many investment courses and books recommend paper trading stocks as a way to make better investing choices before using real money. Initially, many beginner traders lose money until they get the hang of trading - paper trading helps to teach how the market works without losing real cash. Other traders revisit paper trading when they want to test new skills or strategies.
- Step 1: Set a Budget
- You can be as realistic or unrealistic as you wish. If you're going to transition to a real portfolio, try managing your "real" money. A real portfolio could be as small as 2,000 or 5,000 or as large as 100,000 or more.
- Step 2: Pick Stocks
- Find stocks you love and make a "porfolio". That doesn't mean you've decided to buy them.
- Step 3: Make a Buy / Sell Chart
- Pick a good entry price based on the stock chart. Write it down. Take out your broker's fee ($10 is a good average) everytime you buy or sell.
- Step 4: Calculate Earnings / Loss
- Use simple math to figure out what you've earned or loss if you decide to sell.
- There's a simpler way: Try online stock paper trading today.