Social Investing for Dummies
This chapter focuses on the importance of simulation. Why do airline pilots train on a simulator before they test it out in the real world? Outside of a simulator, every action has a real consequence. It might be your life in the case of an aeroplane simulator or your money in the case of a trading simulator. It is always good to test out the waters before you embark on a mission. Below is a screenshot of eToro’s virtual simulator.
How to set up a simulator?
It is fairly easy to set up a simulator. Click on this link to start a demo account but before you do that, consider reading this post to its entirety. Setting up a demo account is easy and a demo account on any trading platform is a beginner’s best friend. Even for an expert, the demo account offers a testbed to check out their assumptions away from the real world. Think of it as a test drive before you buy the car. You’ve got nothing to lose!
Treat it like it’s real
If you have a deeper look at my demo account screenshot, you can see that my allocated amount is barely a drop in the $100,000 virtual equity. As a testbed for me, I think of the $3,872.71 as money from my own pocket. This gives it a sense of seriousness that will help you well into your investing career. In turbulent times like today (February 2021), I would highly recommend using the testbed and learning until you are sure it is the right time to invest.
Self-control: The Timeline
Did I say self-control? Yes, I did- again! It is very important to set yourself a good timeline to see the results of your choices before you actually invest money in your strategy. How long should a smart timeline accommodate a demo account? I would prefer a month but if you are too excited, 2 weeks is the bare minimum!
Let’s say you are all set up with the demo account. How do you copy? Back in school, you knew that it is only worth the effort if you can copy assignments from someone who is on top of his/her subject academically. How do you find someone like that in the world of investing? The next chapter is all about finding the investing gem.