I'm going to talk to you real quick about using something called “paper money” in order to learn how to invest. Paper money trading is really cool. Let me tell you about it.
What is Paper Money and Paper Trading?
What is paper trading? It’s an idea that basically means working with pretend money, but doing it with real numbers in real time.
By combining the internet with the idea of paper trading, we have a really great package for online stock trading that helps us develop ourselves as investors, without taking any real money risk. We can also trade paper money without incurring the kind of emotional trauma when we use real money and we know that we don’t know what were doing.
How to Set Up a Paper Trading Account
What you should do is get yourself onto one of the paper money trading sites. Think or Swim is the one that we use a lot, but there might be some other great sites out there. Just google “paper money” or “paper trading” and go out there and get your account set up.
After you sign up, on thinkorswim.com you end up with about 200,000 dollars of pretend money to “invest” with in a system thats using virtually real time data.
Why You Should Practice Stock Trading
When you start investing you want to see that the effects are going well for you before you go out and start investing with real money. You want to have the benefit of doing some real trades before you start using real money because, stock trading for beginners is scary using real money when you’ve never done it before.