Beginner's Guide
How to Start Practice Investing ASX Stocks
Learn investing mechanics risk-free with simulated money. This guide explains how practice investing works as an educational tool.
Important: PaperWealth is an educational tool only. It does not provide financial advice, recommendations, or real trade execution. All simulations use historical or indicative data for learning purposes.
What is practice investing?
Practice investing is the practice of simulating stock trades without using real money. The name comes from the old practice of writing trades on paper to track hypothetical portfolios before the digital age.
Today, platforms like PaperWealth let you trade with virtual currency using real market prices. This means you can experience the full investing process—researching stocks, placing orders, watching your portfolio change—without risking a single dollar.
For Australian investors, practice investing is particularly valuable because it lets you practice with ASX-listed securities specifically. Most global simulators focus on US markets, but PaperWealth is built for the Australian Stock Exchange.
Why practice investing before investing real money?
Zero financial risk
Make mistakes and learn from them without losing actual savings. Even experienced investors test new strategies with practice investing first.
Real market experience
Use actual ASX prices and see how your decisions play out in real market conditions. The only thing that's simulated is the money.
Build good habits
Develop a research process, learn to diversify, and practice patience—all crucial skills for long-term investing success.
Test before committing
Curious about a stock or ETF? Paper trade it first to see how it behaves before putting real money on the line.
How to start practice investing on PaperWealth
Create your free account
Sign up with Google in under 30 seconds. You'll instantly receive $100,000 in simulated money to practice with.
Explore the ASX market
Browse real ASX stocks and ETFs with live pricing. Search for popular options like VAS, CBA, BHP, or any of the 2,000+ securities on the Australian market.
Place your first trade
Select a stock, enter the number of shares, and execute your trade. The simulator uses real market prices so your experience mirrors actual investing.
Track your portfolio
Watch your holdings change in value throughout the day. Monitor your cash balance, see individual stock performance, and track your overall returns.
Learn from your trades
Review your trade history and see what worked. Compare your portfolio performance against the ASX 200 benchmark to measure your skill.
What you can practice in a simulator
These are common activities people use practice investing to learn about. This is not advice about what to do with real money.
Understanding ETFs
Exchange-traded funds (ETFs) are investment products that hold multiple securities. Practice investing lets you observe how they behave without financial risk. Examples on the ASX include VAS and A200, which track broad Australian market indices.
Experimenting with allocation
You can practice dividing simulated funds across different securities to understand how portfolio composition works. There is no "right" allocation—what works depends on individual circumstances.
Observing regular investing patterns
Some people practice making regular simulated purchases to understand how this approach works over time. This is sometimes called "dollar-cost averaging."
Reviewing trade history
Use PaperWealth's trade journal to review your simulated decisions. Understanding your own patterns may be useful for developing your investment approach.
Common practice investing mistakes to avoid
Trading too frequently
Real investing incurs brokerage fees. Practice patience and avoid the urge to constantly buy and sell.
Ignoring diversification
Putting all your simulated money in one stock is tempting but teaches bad habits. Spread your risk.
Not treating it seriously
Because it's "not real money," some people make reckless trades. Practice as if it were your actual savings.
Skipping the research
Practice investing is your chance to build a research habit. Understand what you're buying, even if it's simulated.
Frequently asked questions
What is practice investing?
Practice investing is a simulation that lets you practice buying and selling stocks using virtual money. It's an educational tool to learn market mechanics without financial risk.
Does practice investing use real prices?
PaperWealth uses real ASX pricing data. However, simulated trades don't account for real-world factors like slippage, liquidity constraints, or the emotional impact of real money.
How much simulated money do I get?
Every account starts with $100,000 AUD in simulated funds for educational purposes.
Can I practice with ETFs?
Yes, PaperWealth supports ASX-listed securities including ETFs. You can observe how different products behave in the simulator.
Is practice investing the same as real investing?
No. Practice investing is an educational tool only. Real investing involves actual financial risk, emotions, transaction costs, and tax implications that simulations cannot replicate. Consider speaking with a licensed financial adviser before investing real money.
Ready to start practice investing?
Create your free account and get $100,000 in play money to practice with.