Have you always wanted to start investing but are too scared to lose your money? What if there were an easy way for you to practice trading stocks without putting any real money on the line?
Well, lucky for you, there is! It's called paper trading, and it can seriously help you understand the markets. We will cover everything there is to know about paper trading.
A paper trade is simply a simulated trade that allows you to buy and sell stocks. The reason it's called a “paper trade” is that back in the day before computers, aspiring investors would write their trades out on paper to practice.
Paper trading provides a great way to gain exposure to the stock market, but as with everything, there are advantages and disadvantages. Here are some of the pros and cons.