Investing for Beginners

So you want to try your luck in the stock market. You hear it's the best way to make money even though you know it can be risky. You need your money to work just a little bit harder than it can sitting in the bank. Investing is a great way to do that. Let's look at some great tips to help you get started.

1. Start by getting educated about investing. There are many places where you can go to attend a seminar or class.You can even do a lot of your research online. There are many scams out there and you need to be cautious about picking the right investment strategy and the right broker to work with.
2. Decide upon a strategy for stock-picking.Set some financial goals.If you jump in thinking you are going to do this just to make money you could run into some problems.Those that have specific financial goals tend to do better with their portfolios.Are you looking to make a specific amount of money?Your strategy is also very important.Are you going to attempt just blind dumb luck?Decide ahead of time how risky you are going to be.
3. Do your research on the specific stocks you are interested in.Look at their financial statements, quarterly reports, etc.Because you are buying stock - these documents should be easy to access as they are public record.They should be on file with the Securities and Exchange Commission.Look at the trends of their financials.Does the company seem to have large peaks and valleys or are they pretty constant and steady?
4. Start by investing in what you know.Look at local companies and industries that you are familiar with.You will find you have a better sense of when to buy and sell on industries and companies you are more familiar with.
5. Diversify.Try to avoid putting all your investments in one or two companies / industries.Spread your investments around, however, don't go crazy.Go back to your strategies and goals.
6. Buy stocks you feel comfortable in holding for longer periods of time.You want to try to avoid the urge to sell the minute your stock price starts to dip a few cents.Remember, the market will fluctuate.You have to be a little patient.
7. Determine if you want to use a broker or do you want to do your trading yourself.You can save on commissions by using discount brokerage firms, but you need to make sure you are completely confident on your trading skills.If you decide upon using a broker you need to make sure you select them carefully.
8. Open your portfolio account.This can be done with your broker or brokerage firm.Many will do this with online applications today.Most places will require you to send money before the account can be opened.This process may take a few days.Don't expect to be able to start trading that very day.
9. Review your portfolio and investments often and check them against your financial goals.You can keep track of your investments and watch the progress in several ways.You can check your local paper (not all investments are listed there).You can check the Securities and Exchange Commission. You can use the internet to check out your stock prices as well.Your brokerage should provide you with statements as well.
10. Continue to keep your eye out for additional investment opportunities. Make sure you don't bite on every tip you hear, but keep your eyes and ears open to new opportunities as you follow the investments you already have made.