Test Your Stock Picking Skills With Paper Trading!
Paper trading is a great “tool” for individuals new to the stock market! It lets an individual practice their stock-picking skills, buying and selling stocks, without committing any real money! With paper trading, the first time investor is not taking on any real risks.
Paper trading is a simulated process also referred to as “virtual trading.” You will be practicing your stock skills using “virtual” currency…not real money! Practicing paper trading will give you an idea of whether or not you are ready to begin choosing your own stocks to invest in.
Selecting your own stocks to invest in could produce higher returns for an investor long-term. Many investors prefer to use their own judgment when selecting stocks rather than turning their money over to a money manager.
Paper trading will allow you to test new and different investment strategies. This way you can avoid taking on excessive risk due to being an inexperienced investor. Paper trading will also allow you to to create a portfolio based on “real” stock entries. Doing this will let you know whether you would profit by choosing and investing in stocks yourself!
In my research, I have found several websites that will assist you in getting started paper trading. Marketwatch has a virtual stock exchange and “free” stock market game. In addition, TradingSim, Trading Simulator, and Investopedia will all let you try your hand at investing. Some of these sites are “free” to use.
In conclusion, paper trading is great for first-time investors! It offers you the benefit of putting your stock knowledge to the test. Paper trading lets you submit your trades and try different stock strategies before you start investing your own money!
You should try to take advantage of the above “simulated” online trading sites to test your investing skills beforehand. Paper trading should also give you the confidence you need for when you do open a brokerage account and begin the exciting journey of selecting your own stocks to invest in.