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| MODULE 9 |
| PRACTICE MAKES PERFECT |
Paper Trading & Portfolio Composition for Adults |
In Modules 1-8, you’ve learned the basic foundation and fundamental rules of our MoneyPing™ strategies that teach you how to follow the trail of MoneyMites™ to investment success. Now it’s time to apply what you’ve learned by paper trading these strategies.
What is paper trading? Paper trading is practice trading with an imaginary account with imaginary money. But that is the only thing imaginary about it. You’ll be able to see how well you do in real time, meaning today, tomorrow, one month later, six months later, and a year later. You’ll be able to see if you would have lost or made money, if you were really using real money. And if you lost money, you’ll be able to review your notes, and understand the decisions and reasons that caused you to lose money.
In fact, paper trading is the time you want to make mistakes and learn from them. This is the time not to be concerned so much about building “perfect” strategies and choosing “perfect” stocks. After all, you are just beginning to learn. And this learning will be invaluable when you are finally ready to invest real money. If you paper trade for three or four years, just think of how good you’ll be when you finally enter the stock market for real.
Even if you’re experienced enough where you feel you don’t need to paper trade, we still recommend paper trading some of our MoneyPing™ strategies before conducting real trades with them due to the counterintuitive nature of some of them. For example, when we first started buying stocks with our MoneyPing™ Strategy No. 3, we discovered that many large investment houses rated our stocks as a “hold” or “sell”.
Though we don’t put any weight whatsoever on investment house research reports, it still made us a tiny bit nervous that we couldn’t find a single major investment house that rated some of our picks as “buys”, so we paper traded our strategy for an entire year. Only after they started returning 25%, 30%, and 50% returns in a year did we realize the strength and reliability of our strategies. Paper trading with some of our strategies first may give you the confidence you need when you start trading with real assets.
Still, if you disregard our advice, at a very minimum, browse some of the practical additional lessons contained inside, including “7 Rules for Building a Smart Portfolio”, and my personal favorite, “14 Lessons You Can Learn From Navy SEALs”. There are some pointers contained in these lessons that if you don’t already know will most definitely improve your returns.
Content: 14 pages
Number of Exercises 1
Number of Lessons: 3
Exam Questions: 15
BONUS Paper Trading Guide: 7 pages
Estimated Time of Completion: Module, 2 hours/ Paper trading, ongoing 6 months
Note: Content Pages are measured by how many pages the content would constitute if on a standard 8.5" * 11" page, Times New Roman 12 font, not web pages as some web pages are 3-5 pages "long".
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