The beginners who want to start stock trading 악녀알바 should understand very well that just like everything else in life, they need proper and quality education first. Lots of books and online courses are available for beginners to swim through. Once you have a theoretical grasp over the subject, you can start honing your skill using a paper trading account. A paper trading account is where you don’t have to invest any real money, and you still can trade stock in the actual trading platform – with fake or virtual money. A paper trading account is like a flight simulator, where you can experience flying a plane, but on your computer and in a simulated virtual environment. However, there’s a significant difference. With a paper trading account, you’re trading in the real live market, not in a “virtual or simulated” market. But, as you’re not investing any real money, you’re not losing anything if the stock you bought goes down. Similarly, you’re not getting any profit as well, if the price of the stock goes up. In short, with a paper trading account, you’ll be able to play in the real stock market, with all the real risk and gain, without losing any real money. Hence, it’s necessary to start with a paper trading account if you’re beginner until you feel confident enough to start playing with real money and rub your shoulder with the big boys!
Paper trading account: practice makes one perfect!
Now, as you have a paper trading account, you should use it consistently for at least a few months. During these few months, you should try to get comfortable with the trading platform and the stocks. You should have keen eyes to notice how the market is moving, how news affects the market, how news is affecting your stock, etc. You have to find, research and understand the reasons behind the behaviours of the market. As you’re trading with a paper account, you can take all the risk you want, and the more risk you’ll take, more you’ll lose (of course, not real money) and more you’ll learn. In short, you have to be familiar with all the ups and downs in the stock market. The more practice you’ll do with your paper account, the more advanced your knowledge and skill will be. If you keep trading this way, within just a very few months, you’ll be experienced enough to start with a real account. Of course, it depends on every individual how much practice one needs or how many months one need to keep practising with the paper account. Most people with an average IQ usually start trading with the real account after just three months of practice with the paper account. However, if you’re even slightest doubtful, do not start with a real account yet and keep practising with the paper account. After all, it’s real money in the real account you are going to lose or gain – so you should not start with the real account before you’re confident enough.
Now, once you’re done with paper trading account and about to start with a real trading account – your first step should be sketching out a trading plan. This part is very crucial; please note that most beginners fail due to the reason that they don’t have a trading plan.