With the stock market stuck on a roller coaster, do you find yourself hesitating to invest? Instead of backing away, how about practice investing with a fake portfolio.
Consider this — Mike Lane, an all-star investor for Netvest [www.netvest.com] has used the "fake portfolio" strategy for the past two years and has had great success. He details his strategies on Netvest, an online platform where wildly successful amateur investors share their best investment insights and make public their own personal portfolios.
For those who are are reticent to put real money on the line while they test the waters, a practice portfolio is the perfect solution. Here are a few reasons why.
1. THERE'S NO RISK
The prospect of handing over some hard-earned money to a volatile market may be a major barrier for potential stock market investors. A practice portfolio let's you play the market without the risk.
2. IT HELPS YOU BETTER UNDERSTAND HOW INVESTING WORKS
Investing is complicated and it can scare off some investors who would otherwise thrive. By learning the ropes with a practice portfolio, investors can hone their ability to make wise investment decisions priming them for building out a real portfolio.
3. YOU CAN TAKE RISKS YOU OTHERWISE WOULDN'T
There's no shame in playing it safe, but as the adage says "no risk, no reward." Having a practice portfolio where investors can game out more risky strategies and put investment theses to the test can help investors learn when to take a risk and when to play it safe.
Go check out www.netvest.com to set up your practice portfolio.