Anyone who has ever played a game of Monopoly has experienced the thrill of having plenty of cash in hand – even though it’s not real currency.
If you are new to the world of investing, any dollar you lose can feel like a big hit, because it’s not play money, it’s your hard-earned cash you are putting up.
Wouldn’t it be great if you had a chance to try your hand at investing without the risk?
There is a way, and it’s called paper trading. This is where you are investing with play money, monopoly money if you will.
Short answer is the Robinhood investment platform does not allow you to paper trade.
However, you can do simulated trading with Webull.
If you transfer an existing brokerage account to Robinhood through December 8th, 2023, you can get an Unlimited 1% Transfer Bonus.
For example, if you transferred a brokerage account worth $50,000 - that would be a bonus of $500.
In addition, Robinhood offers a free stock for new users as well as a 1% IRA match for retirement accounts.
Webull is a commission-free stock and ETF trading platform.
Experts designed Webull for active traders who are looking for a more dynamic user interface than most free apps are offering. This platform has features specifically for traders such as technical indicators, research agency ratings, financial calendars and more.
With easy access to margin, research tools and live data, Webull has constructed an excellent platform for active traders. Keep in mind, it is not designed for long-term passive investors. Instead it’s for investors who are actively trading.
And, of course, you can paper trade. Each Webull user gets $1,000,000 of fake money to practice with risk free!
Webull has a function that lets new investors paper trade even before they open an account. This is a very unique feature you won’t find many other places besides Webull.
Webull has a goal to help all investors learn to trade. In order to meet that mission, they offer access to their trading simulator whether you are a Webull member or not. All you have to do is download the app and select that option.
This allows you to not only test out trading strategies, but also to become more familiar with the platform risk-free before deciding if you want to join.
In addition, if you decide you want to open an account with Webull, you can also get 2 free stocks using the link below!
The term paper trading comes from the stock exchange, where investors would write their picks down on paper and track the market movements.
Paper trading is simulated. This means you are just practicing buying and selling stocks and ETFs and building a diversified portfolio without worrying about losing money. You chart progress and market fluctuations up and down and tally up your results at the end.
The clearest benefit to paper trading is having the ability to practice the science of risk-taking. Everyone has their own risk tolerance. Some investors want to stay the straight and narrow. They will put their money into conservative portfolios of securities that traditionally increase in value more slowly and over the longer-term.
Other investors like to ride the roller coaster. They may be day traders, who follow stocks and ETFs minute by minute, looking for the smallest spurts of growth to make a move. These investors could buy and sell the same company stock several times on any given day. They thrive in an investing environment that’s fast paced and quite unpredictable.
Then, of course, there are moderate risk takers whose philosophies fall somewhere in the middle.
Paper trading allows you to flex your investing muscles and see how much weight you can handle. You can figure out your own investing preferences.
If you are lying awake at night unable to sleep out of worry about your trades, you most likely are not a risk taker.
There’s no doubt about it, hands-on education is likely going to be more successful than simply reading a tutorial or listening to a podcast. People learn by doing!
Simulated trading puts all the tools you will need in your hands. You will have share prices and current market data. You'll be able to keep a close eye on your assets and whether they grow in value or drop and depreciate. At the end of the day, you will know exactly where your portfolio stands.
That’s the time to assess your outcome and debate whether your strategy was a go or a no-go.
Sometimes people learn the hard way and watch their investment portfolio deflate. But when that happens, they can study what went wrong, and figure out how to make sure it doesn’t happen in the future.
Or maybe your trading day was a huge success, and you’ve learned what went right.
One of the great advantages of paper trading is that you’re not putting your bank account on the line.
You will still be able to pay the rent, buy groceries and put gas in your vehicle, even if your portfolio tanks.
Paper trading works best when it is used for the serious business of learning to invest, rather than a game to play.
You will start to understand your investing strategy and ability to take on risk. Beginners will see there can be a lot of emotion involved when buying and selling. But successful investors learn to trade based on facts rather than emotion. Using a trading simulator can help you learn to stay calm and remove emotions from your transactions.
Simulated training can help you find the answer to one fundamental question: Am I ready to trade with real currency?
You may be able to find the answer after experiencing paper trading on Webull. At some future time, other investing platforms like Robinhood may offer simulated trading, but for now, you can find it on Webull.
Don't forget to grab your free stock worth up to $200 from Robinhood today!
Get 1 Free Stock Worth Up To $200 From Robinhood!
Don't Miss This Opportunity!
Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.
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