Beginner Shares Series: Setting Investment Goals

In part 2 of the beginner share investment series, Owen explains why it’s important to:

  • Set some goals and have a plan
  • Why understanding how much time you have to invest is vital
  • What ‘paper trading’ means and why it can help
  • Why finding a friend or loved one to learn makes investing more fun
  • How to track your goals with an investing journal

What is Paper Trading?

When you ‘paper trade’ you start with a made-up amount of money and put those imaginary dollars to work in the sharemarket. You can use the Newspaper (paper) to find the shares and do some extra research to decide if they’re worth investing in.

For example, you start with a fake $10,000 portfolio and you decide to ‘invest’ your fake dollars in 10 different ASX shares evenly ($1,000 in each).

After a few weeks or months, you can look at the share prices to see which companies would have made you money — and which ones would have lost you money.

You can use a trading journey to summarise what’s happened in your make-believe portfolio.

DOWNLOAD FINANCIAL GOALS TEMPLATE

Bonus Video: What Does A Financial Planner Do?

Got 30 days? Get on top of your finances with our free courses!

Did you know Rask Education offers investing, budgeting, tax and finance courses? Here are the three most popular this week:

Absolutely no credit card or payment information required -- all you need is an email address!

Leave a Comment

Your email address will not be published. Required fields are marked *