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