Ten Tips on How to Get Started Investing in Stocks
Posted By: hierh2dm; Category: Business, Finance & Industrial; November 26, 2008
Author Dana Hierholzer; Tags: stock market, stock, invest;

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A basic guide to the first few steps taken in order to begin investing in stocks.
1
The first thing to get through your head when starting an investment career is that you can do it. Far too many people are intimidated by big time brokers or fancy stock market lingo. Here is a little secret… it is not that hard. Many people in the market benefit quite a bit from you thinking it is too difficult for you to understand. I assure you, this is not the case. It is also worth noting that no one will care as much about your money as you will.
2
You can’t start investing if you don’t have any money to invest. The first thing you need to do is develop a budget. A budget will help you start learning about money. There are many computer programs out there, like Quicken or Quick Books, that will break down your income and expenses into specific categories so that you can see very clearly where you can start cutting spending and raising capital.
3
A good beginning step would be to buy a book. If you are someone who drives a lot, there are several investing books on CD. The idea is to learn the basics. Many times people make investing much more complicated than it has to be. There are so many books on the topic it is hard to recommend any particular one. Real Money by Jim Cramer, The Intelligent Investor by Benjamin Graham, and The Neatest Little Guide to Stock Market Investing by Jason Kelly are all great reads to name a few
4
In order to feel comfortable with investing, you need to learn the lingo. While you are reading a book on investing, keep a deck of index cards with you. Write down the stock market terms as you get to them on one side of the card and write the meaning on the other. Simply writing the terms down will help you learn them. Once you understand concepts like P/E ratios, multiples, puts, futures, options, shorting, etc. it will all seem less overwhelming. Remember these terms are not as confusing as they sound.
5
Look into taking a class at an adult learning center in your area. Many places offer basic classes on investing that last only a couple of hours for something like 2 to 4 sessions. These classes are very reasonably priced and well worth the couple of hours you put into them. Of all the classes you may have taken throughout your entire school career, some are arguably not that memorable or useful. A class in investing for your future however is information well worth learning.
6
Turn the television from time to time to CNBC. This is going to have stock market coverage all day long. This is a good channel to start watching to get a feel for investing and the markets.
7
Create your portfolio. A good portfolio is usually made up of about five diversified stock picks. The best way to start investing is to begin with things you know. If you use a certain product or have worked for a certain company that impressed you, than these are good stocks to start researching.
8
Although it is okay to listen to analysts to get ideas for you future stock picks, never base everything on what someone may say on television. Keep in mind that several people that voice opinions about stocks have their own interests in mind. Some analysts run major hedge funds and offer to benefit from saying things to raise or push down the value of a particular stock
9
Pick an online trading company for you to open your first account. Scottrade, TD Ameritrade, and Fidelity are all great options. Remember when researching brokerage firms, look at all of the company’s terms. Definitely make sure to pay attention to the commission you have to pay per trade. Many of these online firms offer free trading in the beginning and bonuses for signing up with them.
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