Your Questions About Paper Trading Site

Chris asks…

How do I purchase stocks, I’m clueless?

I know absolutely nothing about the market. I would like to invest in stocks but need to know an easy way of doing it. You know explained in “layman” terms. I know there’s many online trading sites. They just seem so confusing. Thanks in advance.

John answers:

Greetings, what I tell everyone is to “paper trade” first. Basically it mimics what the market does. IF apple is at 80 you can buy/short it at 80, it will match with a real trade in the market.

Go to cboe.com and sign up for the virtual trading…do this for 3 months before you place any money, you can learn a lot this way.

Go to investopedia.com, they have everything you need to know about stocks…just start from the begging and go slow… I wish you the best

Sandy asks…

What is fair trade, and why do people like it?

I’ve seen an emblem on food packages that says fair trade, that they pay workers fairly, etc. I think its just a way to make people feel better when they buy a product. Is that what the fair trade emblems are, and why do people like it? How is fair trade established, and food companies can pay whatever they want if it will be supplied at that price, just as foreign farmers can charge whatever they want if there is a buyer. If so, I dont understand the point of the emblem.

John answers:

Fair trade shows that the goods bought for a fair price. The companies didn’t rip off the farmers/makers of a product. Fair trade promotes stability in a lot of developing countries and helps them grow.

A lot of mainstream American clothing is made in countries with unfair labor practices. Some even use young children for labor. There is very little pay for the amount of work involved. Most goods here in the USA are made in china where there are sweatshops and people are basically machines. American companies usually have their products made over their to save on money. They get paid crap, but have to stay in their jobs because there is not better alternative.

It’s best to either support american businesses here. (Products will say “made in usa”) as it supports are own economy. That or you can also buy fair trade, which like I said, means the goods are ethically traded and often the programs given aid to developing countries.

Http://www.fairtradefederation.org/
http://fairtradeusa.org/m/

Here are some really cool bracelets that are fair trade and made from recycled paper. You should really check out there whole site. It explains how these bracelets help these HIV positive women (and some men) in Uganda afford a living and even buy their own house.

Http://www.beadforlife.org/

George asks…

How did Roman currency affect civilization, and the modern word?

I’m writing a paper on Roman currency, But I can’t figure out how Rome “adopting” currency actually helped civilization, and how does it affect the modern world? I really need help on this!

John answers:

Hi there!
Well, what does currency allow people to do? If I live in Pennsylvania and we had one currency, and you over in California or wherever had another, would we be able to trade as easily?
Think about what increased cultural contact does.
Try out these sites:
http://www.dl.ket.org/latinlit/mores/currency/currency.htm
http://users.chariot.net.au/~marcof/romcurrency.htm
Good luck!

Nancy asks…

What are pictures that develop in the sun called?

When I was a schoolboy in the 1930’s, you could buy for a penny a piece of paper which, if left out in the sun, would develop into a photograph, but I never knew the name of the process. We called them ‘sun pictures’.

John answers:

Sun Prints. You can also get the supplies through Dharma Trading Co. With good tutorials:
Kit: http://www.dharmatrading.com/html/eng/141826-AA.shtml
Separate colors: http://www.dharmatrading.com/html/eng/35355-AA.shtml?lnav=paints.html
More sites; http://sciencekit.com/search.asp?t=ss&ss=sunprint&x=0&y=0&c=0&gclid=CMaw2dC6rqsCFUK8Kgod3QLfHw
http://www.sciencebuddies.org/science-fair-projects/project_ideas/Chem_p084.shtml
http://michael-vyskocil.suite101.com/sun-prints-a48449

Steven asks…

Do mock trading sites bear any true resemblance to the real stock market?

I’m 15, and I figured that investing would be a useful skill to learn once I turn 18. I just started using the simulator on Investopedia, and I’m wondering if it is actually anything like the real stock market.

John answers:

Technically those sites mimic the stock market exactly.

If you make a portfolio on any tracking site they have no way of knowing if you put real money in the market or are just paper trading. A few will include commissions but if not, like on Yahoo, you can include that yourself in your costs.

Except there is a big BUT….

Trading with money that is not real does allow people to take risks they might not take with hard earned money it took years to earn and save by working overtime, giving up luxuries, vacations, or years of eating hamburger instead of steak.

So trading with your monopoly money you might appear to make more money by taking those risks since you are less scared to lose it if the market goes against you or your decisions.

When the money is real people tend to invest more conservatively, with less risk, and more carefully.

So how real it is depends more on you than them or the site.

One other caveat. Don’t confuse doing well in a Bull Market with expertise.

But if you keep up your paper trading for several years you will likely experience different market conditions and learn a lot more than most people.

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