Practice Investing with a Free Stock Market Game

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Why Practice Investing?

Why would you practice investing? What is the purpose and how will it help you? You should practice investing for the same reason why you should practice anything. The more you practice, the better you will get. You’ll never get to the point where you practice so much that you get the perfect investments every time. The stock market is unpredictable which means you will never be able to be a perfect investor.

Still, practicing by doing will help you a lot. It will help you to learn how to better choose stocks, learn when to buy and sell stocks more efficiently, and hopefully help you to earn a higher rate of return overall. Also, practicing is risk free and can be done easily with stock market simulation games.

Who should Practice Investing?

Anyone that wants to improve their stock market portfolio should practice investing. Most people who practice are actually investing their own money. If you are a beginner, using a simulation game is a great way to practice. You can start to get your feet wet without having to risk any of your own money.

That type of practice is also great for those who don’t have the cash saved yet but want to start investing to see how it works. While you continue to study investing and save up cash to invest, practice investing on the side to get a feel for how it works.

WallStreetSurvivor.com
How to Practice Investing

If you want a free way to practice investing in the stock market, you can use a free stock market simulation game. The best that I have found is Wall Street Survivor.  This game is completely free to sign up for and you can use fantasy money to invest in the stock market. You can trade stocks, buy-and-hold stocks, or use any strategy you would use in the real stock market.

Another great bonus to Wall Street Survivor is that you can win real cash prizes and gift cards.  They have frequent drawings as well as prizes for top traders.  You can also earn points and cash them in for gift cards.

Sign up for Wall Street Survivor for free here.

After you’ve been practicing a bit with the game, you will definitely want to start investing real money. The sooner you invest real money, the more money you will make. Still, you could always keep practicing on the side with riskier investments if you like.

How to Find a Stock Broker

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There is no shortage on brokerage firms. In order to buy stocks and many other investments, you need to set up an account with a broker. You can’t buy your own stock at the stock market, they have to do this for you.

Fortunately, you have many choices when it comes to finding good stock brokerage firms. Some firms are very expensive because they offer a lot of hands-on help with investment professionals. If you don’t feel comfortable making your own investments, this might be the best approach.

Some investments, including CDs, mutual funds, and bonds, can be purchased through a bank. If you want to start a 401K, you need to talk to your employer about setting one up. If you want to invest in almost any other security, such as corporate bonds, stocks, currency, commodities, etc., you’ll need a broker.

Discount Stock Brokers

Discount stock brokers have been around for a few decades. They offer trades for much lower fees because you’re expected to do all the research and choosing yourself. If you plan on doing this anyway, a discount broker is the best way to save more on fees. The less you pay for fees, the more money you have to invest.

Online stock brokers have recently become more commonly used. These discount brokers are able to charge even lower rates, and they add the convenience of online investing. You can invest right from your own home.

What to Look for in a Broker

Decide if you want to work with a full service or online broker. Once you’ve decided, make a list of the top brokers in that category. The broker I use is Sharebuilder.com. You can learn more about Sharebuilder here.

Put the brokers side by side for comparison. Compare each aspect of each broker for a fair comparison.

How much do trades cost? What types of investments do they trade? What research tools do they offer? Which one has been around longer? What kind of reviews does each get?

Getting a review from existing customers is important because it gives you a more honest look into the company. For example, if the trades are slow, the broker isn’t going to tell you that, but someone who has invested with them will.

Security

Make sure the broker you choose has strong security in place. You are planning to give them your money. You need to be able to trust them. There should be actions in place that make their website secure. With all the internet crime these days, internet security is important.

Once you’ve chosen a broker, set up your account and start investing. Most online brokers will require you to fax or mail copies of some documents. This will take it a little longer to complete the process, which is why it’s a good idea to set up a brokerage account as soon as possible.