Paper trading or pretending to trade stocks is a good way to learn the ropes without risking any of your own money or finances. You can do it simply by pretending or simulating to buy and sell stock, bonds, commodities and mutual funds and keeping notes of paper profits or losses with your online stock broker. Or you can open an account with an online market simulator to paper trade stocks online.
Paper trading stocks or virtual trading accounts allow you the chance to practice trading before risking any of your own capital. You can learn the ropes and start to formulate your thoughts on what makes a good investment, as well as get the hang of how to use the different online trading platforms available. Most online brokerage accounts utilize real time information to help you measure the success of your trades or investments. You choose create and test a trading strategy, build a portfolio, and the actual performance is reflected in your virtual results. You don’t lose any money (you also don’t see any gains). When you are comfortable with the process, you can then start using a live account, and apply what you learned with your virtual account.
Which Brokers Offer Virtual Accounts? If you are interested in learning a specific platform, it can help to use a online broker that offers virtual accounts or paper trading accounts. There is a plethora of online brokers that offer virtual trading tools that can help you get some real time experience in the stock market, without losing any of your finances. Visit some of the online broker websites to find the one that best fits your investing needs.
New traders can also practice by signing up for stock trading or paper trading games. MarketWatch offers various games that are free or offer low costs, and can help you learn the ropes. Wall Street Survivor is another trading game that allows you to emlpoy different investing tactics. It also lets you earn prizes and cash in some circumstances if you do well in your virtual trading endeavors.