Practice with pretend money. Pick a stock, then see what happens when the price goes up, goes down, stays flat or pays a dividend.
Your pretend trade · pretend prices, not live
Money you invest$1,000
You buy about 2.94 shares of AAPL. Many apps let you buy part of a share.
Then the price…
How far? AAPL often moves about 10%+10%
What happens
Your $1,000 in AAPL is now worth
$1,100
+$100 · +10% on paper
What just happenedThe price rose 10%, so your shares are worth $100 more. It is only on paper until you sell. If you sell, tax on the gain may apply (see below).
Taxes, in plain words · US rules, simplified
Say AAPL rose 10% and you sold for a $100 gain. What you keep depends on how long you held it.
Sold within 1 year · about 24%*
You keep $76.00
−$24.00 tax
Held over 1 year · about 15%*
You keep $85.00
−$15.00 tax
No tax while you just hold. It starts when you sell at a gain, or get a dividend.
A loss can cancel out gains, so it lowers your tax.
Rates depend on your income and your country.
*Example rates only. Not tax advice. Pretend numbers, real results vary.