1.SAVE! Don’t start investing in stock unless you have extra cash and savings. If you are a new stock investor – do not borrow money, or take out loans to invest. This is a very dangerous strategy. Save some money first, and then invest it in stocks.
2.READ! Make sure you read a lot about investments, good stock picks, stock market reviews, and company financials. Motley Fool, or the Tycoon Report are good sources for that information. You can use secondary sources as financial blogs or websites. Bloomberg is a good one too. It has currency trading info as well as stock trading info. Read articles written by experts. Warren Buffett publishes a lot of valuable financial information on his website.
3.SMALL PORTFOLIO! Learn about individual stocks enough to purchase them, or you can always get a mutual fund which is a low risk investment.
4.DO NOT SELL! Don’t be frightened if the market is not doing well any particular day, week or even month. Wait until it bounce back because stock generally grow rather then decline in value.
5.PLAN! Set aside a certain percentage of your paycheck for investments, as well as for savings every month. Stick to this plan.
6.CONSULT A BROKER! Talk to someone. Find an honest guy who does free consultations, and work with him. You can certainly pay for stock consultation if you want to.
7.BUDGET! Be wise with your money. Don’t spend it all. Don’t spend your profit. If you make some profit, set some money aside for savings, and reinvest the rest.
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