Billions of dollars are made and lost in the financial markets regularly. If you’ve never invested before, there’s no shame in being a little nervous about putting your hard-earned money into stocks or other trading instruments.
A virtual trading account is a perfect way to dip your toe in the water and get a feel for the markets before making a significant commitment. Then when you’re ready to commit, you can move forward confidently, prepared to thrive.
However, keep in mind that this could give you false confidence in the markets. No investment is without its risks. And the kinds of quick trades you make when paper trading can be particularly dangerous. If you have a shorter time horizon until retirement or are risk-averse, it’s best to avoid active trading and instead let a passive robo advisor maximize your investments for you.