One of the best first steps in getting into the stock market is to invest your time. That’s right, before you jump in and start making financial decisions that will affect your net worth, put in the time to do your homework.
When you are doing your research, there are key points you should aim to become familiar with, including:
After you have mastered the basics, you will want to set yourself up for the best chances for success. One helpful way to do this is to test the ropes with paper trading. A paper trade is a simulated trade that allows you to practice buying and selling without risking real money.
This earned its name from the age-old practice before electronic trading when investors wrote their buying and selling activities down on paper. They also wrote down trading positions, portfolio activity and profits and losses.
In other words, you’re using “play money” without risking actual losses. Paper trading, also called trading simulation, lets you try out your strategies in a place where mistakes won’t be costly to you.
These trading simulators are designed to mimic actual investing platforms.
Webull is one of a small handful of investing platforms set up for paper trading.
Paper trading will help you:
Keep in mind that while using your paper trading account on Webull, your cash gains are virtual. You cannot withdraw the portfolio balance in your simulated holdings or your paper trading account!
Webull is a commission-free stock and ETF trading platform. Launched just four years ago, Webull is a new to the arena of online investing platforms. Experts designed Webull for the active trader who is looking for a more dynamic user interface than most free platforms are offering. This platform has features specifically for traders such as technical indicators, research agency ratings, financial calendars and more.
With easy access to advanced research tools and live data, Webull has built an ideal 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.
Webull offers two types of individual accounts: Cash and Margin. Each user can have one of each. If you already own one kind, you will need to create a new login before applying for the other.
The platform also offers IRAs, including Roth and Traditional.
If you are a beginner just getting into the stock market, paper trading is an excellent way to practice buying and selling without risking actual cash. You are using fake money in the same way as real currency, however any profits you gain cannot be withdrawn or added to an actual trading account.
Although Firstrade does not offer paper trading, you can find this option on Webull.