| Maybe you would like to be a stock trader, | | | | Don't Limit Yourself to Buying and Selling - |
| but you've always been scared to give it a | | | | Use Advanced Strategies Too |
| try. After all, laying your hard-earned money | | | | |
| on the line is a frightening proposition, | | | | Another great thing about being a paper |
| especially if you have no experience as a | | | | trader is that it allows you to try out |
| trader. | | | | advanced strategies. Have you ever wondered |
| | | | how options work? You can give them a try. |
| But how can you possibly get experience as a | | | | How about shorting stock? |
| stock trader without first becoming a trader? | | | | |
| It's a Catch-22 - or is it? | | | | Record a short on your stock trader blog and |
| | | | then reap the imaginary rewards as the stock |
| Paper Trading - Be a Risk-Free Stock Trader | | | | goes down, instead of up. |
| | | | |
| A great way to get started as a trader is | | | | You can even do things like trade foreign |
| through paper trading. Paper trading, despite | | | | currencies, buy and sell commodity contracts, |
| the fancy name, is really just "imaginary" | | | | and get involved in futures - the |
| trading. You become a stock trader on paper | | | | possibilities are limitless! Just make sure |
| only, with no money on the line. | | | | that you keep yourself honest. |
| | | | |
| Here's how you do it: First, buy a journal. | | | | Otherwise, you aren't doing yourself any |
| You'll record your trades in it. Next, | | | | good, and when you finally graduate to being |
| determine how much of a "fantasy" budget | | | | a real trader, you could lose your shirt. |
| you'll give yourself as a paper trader. | | | | |
| | | | You Can Be The World's Greatest Stock Trader |
| If you want to become a stock trader for | | | | - But It Will Take Work |
| real, you should probably give yourself a | | | | |
| realistic spending limit - whatever you might | | | | Paper trading is a great way to learn about |
| be able to start your real career as a trader | | | | the market, and it's a ton of fun too. Other |
| with. | | | | opportunities to test your trading skills are |
| | | | always popping up - CNBC regularly runs |
| Then, each day you should record your trades | | | | "fantasy portfolio" contests that work sort |
| in the journal, with the date and time of the | | | | of like fantasy football or baseball. Last |
| trade at the stock's real price - no | | | | year, they even gave away a brand new sports |
| cheating! | | | | car to the winner! |
| | | | |
| Do You Know Another Wannabe Stock Trader? - | | | | But to be a truly great trader, you're going |
| Get Your Friend Involved | | | | to have to put in some serious work too. You |
| | | | need to read some of the classic investment |
| The best thing you can do to keep yourself | | | | books, such as How To Make Money in Stocks by |
| honest as a paper trader is to enlist the | | | | William J. O'Neil, and Reminisces of a Stock |
| help of a friend. Instead of using a journal | | | | Operator by Jesse Livermore. |
| from the office supply store, create an | | | | |
| online journal. | | | | You should probably start watching CNBC on a |
| | | | daily basis and subscribe to a couple of |
| This can be your very own stock trader blog, | | | | magazines like Forbes, Fortune, and |
| or perhaps just a simple, free message board. | | | | SmartMoney. If you really want to be a |
| No matter what format you use, make sure that | | | | full-time investor, you'll have to first |
| your posts are time-stamped. Then, enter your | | | | invest in a subscription to The Wall Street |
| buys and sells on the message board, so that | | | | Journal, or better yet, Investor's Business |
| the real time is displayed. | | | | Daily. |
| | | | |
| You'll stay honest because your friend could | | | | Being the world's greatest trader will take a |
| go on Yahoo! Finance and find out what the | | | | lot of work, but even if you fall short and |
| real price of the stock was at any given | | | | you're only the 500th greatest stock trader |
| minute. | | | | in the world, you'll still be rich beyond |
| | | | your wildest dreams! |