| If you're new to the stock investing game, you're | | | | Other investors subscribe to investing newsletters |
| probably wondering which way to turn for advice | | | | and blogs, where they can become informed |
| on finding the best stocks. WIth so much | | | | about the stock market, and pick up information |
| information about the stock market out there, | | | | about specific stocks to buy. |
| how can you sort out the wheat from the chaff, | | | | Other investors will buy mutual funds, hoping to |
| and figure which stocks to buy? | | | | benefit from the expertise of professional money |
| Although it can be a daunting task, there's usually | | | | managers. There is a vast array of mutual funds |
| a clear path to investing in the best stock for you. | | | | available to investors these days; there are |
| Start by asking yourself questions, in order to | | | | growth funds, value funds, large cap, small cap, |
| determine your investing goals: | | | | fixed income, geographically oriented funds, and |
| Are you in it for the long term, or will you need | | | | many, many more. |
| to create a passive income that you can live on | | | | No matter how you go about investing, there is |
| relatively soon? | | | | one simple rule that you should try to follow: |
| What's your "risk profile"? Do you want to be | | | | Always try to diversify your holdings. Admittedly, |
| more aggressive and invest in growth stocks, or | | | | this can be hard when you're just starting out, |
| do you want to preserve your capital first, and | | | | with a small amount of capital, but, most financial |
| build your portfolio's value more slowly? | | | | advisors will tell you this same thing - try to |
| How hands-on do you want to be? There are | | | | "spread it around" if you can. |
| investors who trade stocks every day, executing | | | | For example, if you're thinking of buying a certain |
| their own orders, usually with an online discount | | | | stock, maybe try only buying half of the quantity |
| broker. There are also many investors who just | | | | of shares you want, and invest the balance of |
| let their financial advisors choose and make their | | | | the money in another stock, or fund that you've |
| investments for them. | | | | researched. |
| One thing to remember here is that doing your | | | | Speaking of research, any advisor will tell you that |
| own online stock trading and stock analysis can be | | | | good research is the backbone of successful |
| very time consuming, to say the least. So, if, like | | | | investing. Before you buy stocks, you should |
| most people, you already have serious time | | | | always research them first, and have a valid |
| commitments, such as a full-time job, or family, | | | | reason for buying them, just like anything else. |
| trading stocks yourself may not be the best way | | | | Most of the online stock trading discount brokers |
| to go. | | | | now have free professional stock and investing |
| On the other hand, if you have some time to | | | | research available to their customers. |
| devote to learning about stocks and investing, it | | | | An easy thing to do before you start to buy |
| can be a fascinating way to "earn while you learn". | | | | stocks online, is to do a web search on the |
| Some fledgling investors have found success by | | | | company. Most companies have websites, with |
| joining "investment clubs", where they share | | | | investor relations sections, that will give you their |
| investing ideas and knowledge with other club | | | | financial information and latest events. |
| members. | | | | |