This blog is dedicated to the empowerment of girls and young women.

March 06, 2012

3 Great Sites That Teach You About Investing!

It’s important to understand that saving your money is wise, but that investing it strategically, is even wiser.

The reality is that savings alone, will rarely give you the kind of returns that will help guard against inflation — i.e. price increase over time.

One of the chief ways of increasing your income over time, is including stocks in your investment portfolio.

Over the past thirty (30) years, the US stock market, despite its ups and downs, has given investors on average 709% returns on their investment.

This return also known as the CAGR (Compound Annual Growth Rate) was 7.09 from January 1, 1981 to December 31,2011 (taking inflation into account).

What this means is that if had you put in $1 in the stock market on January 1, 1981, then as at December 31,2011, it would have grown to $8.36 .

The sites that we introduce below, give you a great introduction to trading US stocks.

They have easy-to-read introductory articles and allow you to invest in the US stock market, risk-free.

. In that you don’t have to invest real money, but you get practice money (usually around US $100,000 to start with) to use strategies learned from the site and elsewhere, to grow the value of your investment portfolio.

Two (2) of these sites give you real money and prizes if you place 1st to 2nd in competitions they have on their sites.

These competitions also enable you to play against other players on the sites.

The site draws on its own resources and that of other top-rated sites, to teach you the fundamentals of trading on the US stock market.

To navigate this site:

Start with links on left-hand-side of the page, which give you a great introduction to trading and investing.

E.g. their Getting started link is a great place to start.

Sign up for their Virtual Stock Exchange Game. where you’ll practice the strategies learned on the site and you and your friends can compete for prizes of US $25,000.

Teachers can even register up to four (4) classes to take part in the Teachers Stock Market — a private classroom stock contest.

It provides students from elementary to High School levels, with an interactive means of learning about savings and investments.

The principles taught in the game also allow you to be a better Math, Social Studies, and Language Arts student.

Your school has to officially register to take part in the Stock Market Game. (Registration is worldwide).

Has great tips and video tutorials about investing in stocks, ETFs (Exchange-traded Funds) and options .

Tips are available from the beginner to advanced levels.

Additionally, participating in competitions on the site, makes you eligible for cash prizes.

E.g. for this month, WallStreetSurvivor.com has a Mark’s March Contest . whereby which winners win a total of US $2,000, with two (2) winners being declared each week.

In all, you can create dummy portfolios and fantasy trade on the above sites to really learn the essentials of trading on the stock market.

2) When you feel that you have grasped the concepts (by outperforming other players in the above fantasy stock markets), you can then open a practice account at one of the reputable online brokers.

After you’ve mastered that broker’s platform, start trading, using that platform.