Issue 5 of How to start investing
Once you have selected a strategy that sounds appealing to you, it is best to test it out using a practice account. Many stock brokers today will allow you to open a practice account (sometimes known as a demo account) in order for you practice investing with fake money. Through this, you can try out your strategy and make sure it is the right one for you. You can also build your confidence before you start investing with real money.
We have all heard of someone who has lost a big some of money investing because he/she didn't know what they were doing. Don't be one of them!
By practising your strategy, you gain the confidence in yourself and your strategy and can determine whether you like this strategy enough to stick with it for the long term.
Legally required disclaimer: All information presented is for educational purposes only and is not a advice to buy/sell any stock or other investment instrument. Investors are solely responsible for their profits/losses. The instructor has taken care to ensure accuracy of the information presented but no guarantee of this is provided and the instructor shall not be held liable for any inaccuracies.