- 1
Simulated trading lets you keep your wallet closed.
Establish the ground rules of how you're going to simulate the market. Choose the amount of money you plan on allotting yourself, and create your strategy. Are you looking for long-term growth, income or just an education? Create a timeline and goals to go along with your plan. - 2
Like Monopoly, simulated market trading is both fun and educational.
Create your portfolio in your financial software program. Start with a cash balance in your brokerage account. If you plan on depositing money every week, then don't forget to enter those transactions. - 3
Your portfolio is down 57 percent?
Research the companies and the industries that you plan on investing in. Even though this is a simulation, the goal is to pretend that it's your own money that is being invested. - 4
Keep the latest numbers close at hand.
Enter the opening price and number of stocks purchased as soon as you plan to buy them. A market price is usually close enough, and make sure you include a brokerage fee in the price. - 5
Quicken allows you to download the latest prices.
Learn how to use the "Update Security Prices" function of your software. Creating a viewable portfolio on your home page or buying a ticker program for your computer will keep you up to date on alerts and news. - 6
Checking stocks in the paper is old school.
Review your portfolio on a regular basis and tweak when necessary. Use real-world news and company performance to influence your buying and selling decisions.
previous post