Learn the language: Online Wall Street training will confuse you if you haven’t learned the language of investing. Learn the differences between buy and hold investing and day trading, how to trade stock options, online free stock trading, market timing strategies, and mutual funds. But, first—learn what these terms mean.

Play stock market games: A stock simulation market game will train you to be comfortable with investing just as practice repetitions for an athlete, musician, actor, or public speaker prepare them for the game, performance, or meeting. An excellent stock market game, like the one offered by WallStreetSurvivor.com, operates exactly like the real world. Fortunately, you need not risk your hard-earned money while learning how to play the stocks game.

After learning the language and playing stock market games with virtual money, you should have the Wall Street training you need to become a profitable investor.

First, understand the nature of a call option. If you want the ability to buy a stock at an agreed-upon price by a given date, you seek a call option. Once you own some call options, you can sell them to others, typically for a premium (fee or income). Should you also own the shares of the stock identified by the call, you now have engaged in covered call writing.

But, how does covered call writing enhance model stock portfolios? For example, assume you have 100 shares of ABC, Inc. worth $10,000. You sell call options for this stock for $1,200. You pocket the income and wait for the buyer to exercise their options. Should the stock price decline, you are protected unless the loss exceeds the $1,200 you’ve already received. Such a decline will usually influence the call owner NOT to exercise the option, since they can buy the stock for less on the market. But, you’ve already made $1,200 or, worst case, lowered your potential loss by that amount. You win either way.

Still a bit hazy on covered call writing? Learn much more about covered call writing in Wall Street Survivor’s Investing 101 online course.

Those who are attracted to the excitement of frequent trades and a won/loss scorecard might prefer to learn to trade stocks on a constant (or “day trading”) basis. Others, with long-term goals and objectives, will be more comfortable with a “buy and hold” strategy.

Regardless of your method of playing the stock market game, include these factors in all strong portfolios.

• Diversification: To successfully play stock market games, diversify your portfolio with different investments from a variety of industries.
• Keep your eyes on the profit prize: Whether looking for short-term gains or long-term growth, profits are king.
• Evaluate key ratios: Learn the most important numbers (book value, return on equity (ROE), earnings per share (EPS), and net income) of all your portfolio assets.
• Be true to your investment strategy: This is your roadmap or game plan. Follow it faithfully or change it.
• Minimize mistakes and risks: Much like the sports team coach that plays not to lose to keep his/her team in the game, you should avoid errors and undue risk at all costs.

Use Wall Street training, like Investing 101 from Wall Street Survivor, to start correctly building model stock portfolios.

• Find solid Wall Street training: You have many choices to gain useful online Wall Street education, like the Investing 101 course at WallStreetSurvivor.com. Like all activities, you must learn the rules to play successfully.
• Play exciting—and real world—stock market games: Playing with virtual money in real world environments, trends, and prices offers the best practice and learning experience available.WallStreetSurvivor.com offers a wonderful, effective—and enjoyable—stock market game. You’ll learn how to trade stock options, use covered call writing to protect your investments, and to create model stock portfolios without any of the real world money risks.
• Locate stock investing experts’ newsletters that are meaningful to you: Your investment strategy will dictate which of the hundreds of information sources attract you. For example, if you are a “buy and hold” investor, those sources that offer online Wall Street advice about techniques that help long-term portfolios enjoy consistent profit will be meaningful to you.
• Minimize errors and risk in all real time trading activities: Learn the common mistakes made by investors and avoid them at every opportunity. Minimizing unnecessary risk, by definition, helps you trade stocks more profitably.

However, there are few transactions that are this simple that answer, “how to calculate share gain.” Just consider one factor: Taxes. If you bought this share today and sold it tomorrow, you might be taxed on the total share gain. Should you buy this stock today and sell it in fourteen months, you should be taxed using “capital gains” regulations. You might even have a “phantom gain” that, although not a true gain, sometimes incurs a tax.

Remember, unless you engage in online free stock trading activities, you’ll pay fees that may increase your cost price and lower your gain on the sales price. Always consult a qualified tax adviser before making any tax-driven decisions, as concerns are seldom this simple.

For your basic purposes, however, treat asset appreciation (share gain) as the difference between the price you paid to buy an investment and the price for which you sold it. Play valid stock market games, like the one at Wall Street Survivor, and get up to speed on the world of stocks with the Investing 101 online course. With these resources, you’ll learn to trade stocks profitably and record gains properly.

Disregard the over-simplifications espoused by many. Mutual funds are a way to own more diversified and higher priced stocks for a small amount of money. This is accomplished through the pooling of others’ funds to purchase investments for the fund.

Pooling smaller amounts of money allow the online Wall Street purchase of larger blocks of or stocks that are more expensive. Learn about the types of mutual funds (equity, debt, and balance funds) to learn the focus you prefer.

Newer investors often prefer balance funds, as they split their portfolio between equity (stocks) and debt (bonds, U.S. Treasuries, and other investments that offer interest earnings). A 50%-50%, 60%-40%, or 70%-30% split of equity and debt securities can be a lower risk mix of mutual fund investments. These can also provide evidence of the earnings level of different instruments.

Through the split, you’ll eventually become comfortable with mutual funds, learn the stocks game, and quickly — and knowledgeably — answer the question, “How do mutual funds work?”

The authority on Mutual funds research and ratings is Morningstar. Visit their web site to start investigating potential mutual funds for you to invest in.

Learn the language: Online Wall Street training will confuse you if you haven’t learned the language of investing. Learn the differences between “buy and hold” investing and “day trading.” Learn how to trade stock options, online free stock trading, market timing strategies, and mutual funds. But, first — learn what these terms mean.

Play stock market games: A stock simulation market game will train you to be comfortable with investing just as practice repetitions for an athlete, musician, actor, or public speaker prepare them for the game, performance, or meeting. An excellent stock market game, like the one offered by WallStreetSurvivor.com, operates exactly like the real world. Fortunately, you need not risk your hard-earned money while learning how to play the stocks game.

After learning the language and playing stock market games with virtual money, you should have the Wall Street training you need to become a profitable investor.