Your Questions About Paper Trading Online

Thomas asks…

how to maintain an online handbags shop without worrying about stock?

Hello
I’m planning to build an online shop to sell leather handbags, but I don’t have supplier.
Can somebody recommend some forums to help me find leather handbags supplier from China?
To get started easily, I hope the supplier can offer drop ship service, so that I don’t need to worry about the stock.
And if they can offer me the product images, that would be better.

John answers:

An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf and full-service vs. Self-directed brokerages.

Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.

Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.

After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade–this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.

Michael asks…

Any advice on how to get into the online FOREX market,and or/other online trading markets?

I’m wanting to b able to control trades,with only a small amount of $ to begin with.Hopefully I can gain an understanding of trading online,my present day earning potential isn’t that great,and the future savings picture(retirement,rainy days)looks pretty bleak.So I’m looking for ways to supplement and improve the picture.biggest problem=low beginning investment capital,can’t go more than 1,000 to begin with.Best asset=still got a lot of time,and focused on preparing a better future.

John answers:

First things first, its imperative with investments such as FOREX or stocks, you use discretionary income. Savings accounts, IRAS, rainy day funds, ect, may not make you rich, but are important to hedge against market losses and essential to your financial security. But its both wise, and okay to have a smaller initial investment. With FOREX, you’ll have great leverage in your favor anyway.

Its also great you have a lot of time, but regardless if you had one week, or one century, the worst mistake you could make would be jumping in with real money first. You’d have more fun lighting the money on fire and having the same result. Practice, paper-trade, play accounts, do it once and beat out the indexes and inflation, and you’re off to a great start. Do it again, and again, and again. Read everything you can about which ever investment you decide upon, or your $1000 will be tuition for the markets and what you learn. Trust me, ask any trader and the majority jumped right in with real money, lost it all, and learned what they could have learned without losing the money. Don’t believe the hype and scams about “stock systems.” Develop your own, formulate your own rules, and live and die by them.

But back to your request for advice, to sum it up. Practice with play accounts/demo accounts/paper-trade over and over again until you are 100% comfortable and have a good understanding of what it is you are investing in. That is the easiest and best way to get into online investing. Google search for some FOREX play accounts, these sites usually also have options for real accounts when you’re ready with great leverage, 100:1, even 200:1 I can recall seeing.

Best of luck.

David asks…

Which investment books should I read for stock trading?

I am 18 years old, and I really want to learn how to invest online through Scottrade/ShareBuilder/Zecco. I am not an economics/ finance major, nor have I studied economics in high school; thus, I really have no idea where to start.

Yet I am eager to read some books regarding this to learn. Which books should I read to at least make me understand how stocks work, when and how to buy stocks, etc?

John answers:

Before you learn to trade you must learn to invest and before you invest $0.01 you ust learn what to do, how to do it and why you’re doing it.

Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Here’s some websites that you may like
http://moneycentral.msn.com/home.asp
http://finance.yahoo.com/
http://www.investors.com/?tn=top
http://www.1source4stocks.com/
http://www.grahaminvestor.com/
http://www.winninginvesting.com/
http://www.investopedia.com/
http://www.kiplinger.com/investing/

And when you think you’re ready to trade, before you do try paper trading at
http://www.tradingsimulation.com/
http://simulator.investopedia.com/

Good luck

Donna asks…

I want to know about iforex online trading. Is it genuine and whether money can be made?

I got to know from friends about iforex online trading. what is the minimum investment required. for this and is it genuine or not. How does it work and whether money can be made in this.

John answers:

Try this website. Www.howthemarketworks.com and sign up for an account. It’s completely free and even has “real time” quotes on US equities and a $50,000.00 forex account. It’s a fantastic place to get to know about equity trading and forex. I’m a day trader but forex is wayyyyy to wild a ride even for me.For the inexperienced, forex can be a great way to make alot of money in minutes but also a great way to loose your saving in seconds. Minumums in can be as little as $250.00 to get started but i suggest you “paper” trade for at least a year before you actually jump in (trust me, you’ll thank me for this advice). Good luck.

Betty asks…

How are Universities accredited versus technical trade/art schools that claim they are accredited?

Why is one more “definite” (not sure if that’s the right word) for Universities to get a degree over the other?

Like Online schools that have an accredited notice, is that legitimate as a University. Why do careers have a favor over another?

John answers:

US accreditation is confusing (and there will be exceptions) , but you can put US Institutions into 3 categories:

*Regionally accredited – The highest and most useful. The vast majority of US schools are regionally accredited. Accreditation does not mean prestige, only that it has passed a review.
*Nationally accredited – Real schools, but a lower level of accreditation. It may limit credit transfer and / or professional licensing (Certified Public Accountant, Registered Nurse, Professional Engineer).
*Unaccredited – Not worth the paper they are written on.

Whether the delivery method is online, onground, or a mix of the two is irrelevant to accreditation.

Check here before you enroll:
http://www.chea.org/search/default.asp

I think that answers your question, but wanted to add this for any other readers.

On top of the institution accreditation, programs within the school can have specialized or programmatic accreditation on top. This accreditation can be nice to have or need to have.

For example, a regionally accredited institution can have a law program. The law program NEEDS to be additionally accredited to allow graduates to sit for the Bar exam.

For example, a regionally accredited institution can have an MBA program. The MBA program can also have an AACSB accreditation that only a small % of schools have. This is a nice to have, but not required for any licensing or to meet other requirements.

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