If you are interested in investing in the stock market, opening a virtual stock trading account is a safe way to test the market without actually risking any of your hard-earned money. Mock investing allows you to make trades using real-time information from the current market. Your investment account performs just as if it were a real account. This allows you to experience real-world conditions using the virtual money in your account and develop strategies that you may use when you get a real account.
1. Register for an account at a website that allows users to manage a virtual stock trading portfolio. Several websites offer this service. OptionsXpress by Charles Schwab, Investopedia and We Seed are examples of sites with integrated virtual stock accounts. Most sites require your email address and full name to open a virtual account.
2. Review the instructions or directions page before using the account. You may usually find this page in your virtual account dashboard. The instructions will tell you how to navigate your account and what procedures to use to begin mock trading.
3. Create your portfolio. Enter the mock stocks that you want to use into your virtual account. For correct and consistent tracking purposes, enter the current market value price of each stock into your virtual account. You may find real-time stock information at most reputable financial websites, such as Yahoo Finance.
4. Practice trading using the virtual cash available in your account. Every time you buy mock stock, it reduces the amount of virtual cash you have in your account. Selling stock has the opposite effect. Make trades based on your comfort level. For example, if you are a risk taker, you may be comfortable trading a large amount of stocks for short-term profits.
5. Check your mock trading account daily to track your stocks. Tracking your mock stocks daily for changes can help you to get accustomed to the trading process faster.
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