Dividends made from paper money?

[maxiewawa]

Hi everyone, my first post other than my "new to the game" introduction post so sorry if this is already answered, or is a stupid question.

Obviously I'm just starting out, and would like to get a feel of things first.

I'm interested in using "paper money"; pretending to buy shares so that if things go bad I don't actually lose anything.

But I don't get it... so I pick a stock, "buy" it, and watch it go up/down? Is that it? I'll get to see my imaginary equity go up or down, I understand that much, but what about any dividends that I would have received? How do I find out how much I would have made if I had bought real shares? And what if a "paper money" investor chooses to reinvest dividends? How would one work that out?

I'm used to watching stock prices go up/down, I can wrap my head around that. But as I understand it, that's only half the story, and one receives money from investing in stocks not only through capital gains, but other ways (through distributions/dividends).

Thanks! Please let me know if my question isn't so clear.

 

[awg]

You could set up an Excel spreadsheet ( or the free Open Office equivalant)

Record purchase date, price, divs, franking , brokerage, enter formulas etc etc.

Info available on ASX

You will need a free online brokerage account to get accurate bid/ask prices.

Away you go.

Or use a demo CFD account.

Or a paper and pencil and calculator

 

[Trevor_S]

I'm interested in using "paper money"; pretending to buy shares so that if things go bad I don't actually lose anything.

Don't be mistaken into thinking you will do the same with paper money as you will with real money.

But I don't get it... so I pick a stock, "buy" it, and watch it go up/down? Is that it?

“Earnings are only a means to an end, and the means should not be mistaken for the end. Therefore we must say
that a stock derives its value from its dividends, not it's earnings. In short, a stock is only worth what you can get out of it." - The Theory of Investment Value