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The best way is to build a "paper portfolio." This is a scholastic exercise in which you create a pretend account, buy stocks with a fixed amount of money, and track how they perform. Once you can consistently make a pretend profit in your paper portfolio, you're ready to invest real money in real stocks.

When you do invest money, I would start with companies that are in industries you already know about. Build a paper portfolio with those companies; choose a few that perform well and invest in them.

A great website you can practice this would be on www.updown.com.

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13y ago

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