A fantastic way to learn about the process of investing in individual stocks is to play Investopedia’s online stock simulator. About a year ago on a whim I decided to give it a shot and picked a handful of stocks from companies that appealed to me for one inane reason or another. Microsoft, Apple, Texaco, etc.
Over the year’s time I’m up approximately 19% percent in my “ahem” portfolio. Making me wish I had invested real money. However it’s been an interesting education in the ups and downs of a particular stock. For instance I picked up 100 shares of Dell reasoning that such a solid company should be a strong buy in any market. Well, as of today I’m down approximately 14%. I could search the internet in hopes of divining why the stock isn’t succeeding right now but it serves to illuminate a reality in doing this kind of investing: THIS IS SOMETHING THAT REQUIRES DETAILED ATTENTION.

I have no doubt that I will be purchasing individual stocks in the near future but for now I’m going to keep on keeping on with my fake portfolio and chalk it up to a great learning experience. I encourage you to experiment in the same way.

Investopedia’s Online Stock Simulator

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