Beginner Shares Series: Setting Investment Goals
In part 2 of the beginner share investment series, Owen explains why it's important to:
Set some goals and have a plan
Why understanding how much time you have to invest is vital
What 'paper trading' means and why it can help
Why finding a friend or loved one to learn makes investing more fun
How to track your goals with an investing journal
What is Paper Trading?
When you 'paper trade' you start with a made-up amount of money and put those imaginary dollars to work in the sharemarket. You can use the Newspaper (paper) to find the shares and do some extra research to decide if they're worth investing in.
For example, you start with a fake $10,000 portfolio and you decide to 'invest' your fake dollars in 10 different ASX shares evenly ($1,000 in each).
After a few weeks or months, you can look at the share prices to see which companies would have made you money -- and which ones would have lost you money.
You can use a trading journey to summarise what's happened in your make-believe portfolio.