With the stock market stuck on a month-long roller coaster, some would-be investors are shying away from getting into the game. We think instead of backing away, eager learners should be making practice portfolios instead.
Consider this — Mike Lane, an all-star investor for Netvest [www.netvest.com] has used the “fake portfolio” strategy for the past two years and his portfolio is up 38% as a result. He details his strategies on Netvest, an online platform where wildly successful amateur investors share their best investment insights and make public their own personal portfolios.
For those who are reticent to put real money on the line while they test the waters, a practice portfolio is a perfect solution. Here are a few reasons why.
1. THERE’S NO RISK
The prospect of handing over some hard-earned money to a volatile market may be a major barrier for potential stock market investors. A practice portfolio lets you play the market without the risk.
2. IT HELPS YOU BETTER UNDERSTAND HOW INVESTING WORKS
Investing is complicated and it can scare off some investors who would otherwise thrive. By learning the ropes with a practice portfolio, investors can hone their ability to make wise investment decisions priming them for building out a real portfolio.
3. YOU CAN TAKE RISKS YOU OTHERWISE WOULDN’T
There’s no shame in playing it safe, but as the adage says “no risk, no reward.” Having a practice portfolio where investors can game out more risky strategies and put investment theses to the test can help investors learn when to take a risk and when to play it safe.
When Netvest first put out an all call for the best amateur investors in the nation to join their investment insights platform they received more than 3,000 submissions. They chose the top 12. Here are a few reasons why the best of the best should be looking to join this exclusive club of amateur investors.
>> BEATING THE MARKET IS BRAG-WORTHY
Few can say they are beating the S&P every year for the last seven years. Unless they are a Netvest contributor. Every one of their featured investors is beating the market on a regular basis. These are the best of the best and they write for Netvest.
>> GET PAID FOR BEING THE BEST
With two revenue streams available, as side hustle’s go, this one is a winner. First, a pay-what-you-want pricing structure enhances creates trust for the audience. But investors also share in Netvest’s revenue with the goal of making $2,000/month within two years.
>> THAT HELPFUL STREAK
Everyone likes talking about their hobbies. Netvest gives featured investors a platform to do that plus they get to help novice investors learn the ropes of building their own portfolios. For some, sharing expertise is the goal — the extra cash is an added bonus.