Your Questions About Paper Trading Stocks

Sandy asks…

Is it possible to actually earn automated forex income?

I have been trading stocks for a few years as a sideline. Now I’m thinking of going into forex as I’m going to lose my job and I am interested to know if I can earn automated forex income. I am willing to work very hard and learn.

John answers:

It is always possible to earn money from forex. Many people including myself do that. I have friends who used to work with me in the bank and they are doing pretty well with forex and they have left their banking jobs as banking jobs are no longer lucrative with a lot of salary cuts.

If you are willing to learn and work for it, I don’t see why you can’t live on forex trading. In fact, with the present forex robots, the learning curve is much shorter and you can earn automated forex income if you get a good forex robot software.

For me, I had the first breakthrough in my trading with Forex Killer and since then I have found Forex AutoMoney to be very useful. I have made some money from it. The membership is quite useful as it offers a lot for a newcomer. Don’t trade with your own money first.

However, keep in mind that automated forex systems have risks too. So do paper trade first and after that go on to small trades to get confidence and a feel of the software . Always manage your risk and you’ll be OK.

Charles asks…

What is the difference between a realized gain and an unrealized gain when it comes to trading stocks?

I just got a “realized gain” on a stock trade of $3.44. What does that mean? What are the factors used to determine a realized gain? A few days ago I had a “realized” gain of $400 on a stock trade. I am not sure what this means. Can somebody explain it to me in simple terms?

I am talking about stocks like PBR, WMT, AMZN.

John answers:

An unrealized gain is one that exists only “on paper.” You bought shares at $10 each and the current market value has risen to $15, but you haven’t sold them yet. You have an unrealized gain of $5 per share.

Carol asks…

I want real time simulation stock trading programs or sites?

I wanna learn trading stocks. I think simulation is the best. the real time, real stocks but simulation. is there any silmuation program or sites?

John answers:

Currently no simulation sites offer real time quotes. All the sites use streaming but delayed quotes (the delay is usually about 15 min). Your orders are executed instantaneously, you just get the 15 min old price.

If you’re just starting out try Investopedias stock game:
http://simulator.investopedia.com/

It’s free and there is a big community attached to it

If you want to play around with an actual platform try the demo at thinkorswim:
https://www.thinkorswim.com/tos/displayPage.tos?webpage=paperMoney

You get a free paper trading account that I believe lasts indefinitely but be aware, the platform can be a little overwhelming at first.

Helen asks…

Can someone please give me a brief yet informative overview of the entire stock market?

Im new to it all.. and i am interested in investing and i have no real idea of how it really works.. If someone could explain the stock market and how to buy and trade stock, it would really help me out. Thanks!

John answers:

Generally speaking the Stock Market refers to equities where actually stocks and derivatives are traded. In the U.S.A. We think the Stock Market is New York City. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that influence one another and impact the world Stock Market.

The New York Stock Exchange may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the New York Stock Exchange. There is a tremendous value for foreign companies to be listed on an exchange in the U.S. The exposure and knowledge of a foreign company has a face on the New York Stock Market.

An example would be a China stock Baidu. These information and search technology company has grown in leaps and bounds since it was introduced on the New York Market. Sometimes all it takes is making a good impression to stock analysts and a good review by key people to give the foreign company a boost.

The reality of the Stock Market today is its world wide integration of investors, companies and alliances that create an unprecedented dynamic. Thus far this United Nations of the financial markets has produced an unspoken treaty of like minds. The main objective is to create a win-win scenario for all of the world players in the Stock Market.

Any investor wherever located may hold a substantial stake in any given equity no matter where the equity is traded. The Stock Market is a very large private club that anyone can join with the only admission ticket is the price of a single share of stock.

Most people are aware of American companies utilizing off shore manufacturing of their products. It may be not as well known that some traditional American brand companies are owned by foreign companies. Other American brand companies have a significant multi-national presence with significant stock ownership by foreign banks and investors.

The term equity should be broadly interpreted. There are equities that involve the manufacturing of products and goods, but a product can be intellectual or an entity like insurance. Banks are equities and financial brokers are all traded on the various exchanges. An investor may own gold stocks, mining companies and equities that package these equities into a corporate entity. The only limitation is that if the investor is interested in owning the commodity or trading in the futures market the Chicago Mercantile or other commodities exchanges is the investing tool.

In other words you may own a bank as an equity who may have bonds and other commercial paper that may trade on the commodities exchanges, but you can’ t buy a commodity as a stock. If you want a commodity like wheat, currency, corn, gold, silver or the like you need to look to the commodities exchange.

In the United States the New York Stock Market is comprised of the NASDAQ, NYSE and the newly created combination of the NYSE Group with Euronext in April, 2007. The Euronext holding company is a phenomenal synergy between Paris and the NYSE whose history goes back to 1792.

The Euronext is a combination of derivatives, currency and equities to name a sample of products. There are other exchanges that include the AMEX. There are listing requirements for each of the exchanges. The Stock Market is basically a place where buyers and seller of a piece of a company come together and in the process the company hopefully raises some cash or other value.

Check out my free Youtube video for more information:

Thomas asks…

I am young and want to start investing?

I am a 17 year old male. For a year, i have had the though of investing in my teens to gain a head start in my life financially. I have no idea where i can start, or where my talents in investing lie, but i am looking for a place to start. What can i do to start investing? should i trade stocks? should i but a few bonds so later in life i can benefit form them? I wanna know where i could start.

John answers:

I fully understand where you’re at, I started when I was eleven but I was made to study the markets and the products traded in those markets

Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing or Dummies” by Eric Tyson.
To continue your education select some of the following
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 Lazy Person’s Guide to Investing by Paul B. Farrell
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
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

Websites that can provide instructions and help with procedures and terminology are Investopedia – http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks – http://www.1source4stocks.com/info/stock-analyst-opinion.asp or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research – http://www.zacks.com/ Investors Business Daily – http://www.investors.com/default.htm?fromad=1
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from The stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.

Good luck on journey, study hard and you’ll invest well.

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