How to Invest Wisely

Investing is not for Wall Street-types any more. In this age of the internet, people that aren’t so well off can also make a contribution to the American economy. Contrary to popular opinion, investing in stocks really isn’t rocket science. It’s a gamble, most certainly, but it’s not rocket science.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Computer
• Investment software (optional)
• A job

1. Determine your budget. Don’t worry if you don’t have a lot of money. On-line investing sites are designed to be the poor man’s stock market. If you choose to invest in anything other than stocks such as options or mutual funds, find out what these items are and how they work. A good place to learn about these things is investopedia.com.
2. Check out some of the investment websites listed below and get familiar with their rules of investing.
3. Do research on the stocks that interest you. Do not choose a stock simply on the basis that it looks “sexy”. If the Hollywood Glamour Co. looks like it is losing money and the Big Fart Co. is making money, which stock would you choose?
4. Log on to the investment website of your choice to begin your investments. Always diversify and never put all your money into one stock. Forming an investment club in your neighborhood is also good idea.
5. Begin investing. You will be paying a commission on each investment you make, but the commissions are very small.
   They will probably ask you when you would like your investments to take place. Choose the date that’s as soon as possible.
6. When you feel that the stock has run its course and you want to put your money some place else, do so and the eHow staff hopes you makes lots of money.

Tips & Warnings

• Remember that investing is a gamble and there’s no guarantee that you’ll make money, no matter how well you research a stock. As long as you’re aware of that, you should be okay.
• Note–the eHow staff is not a stockbroker and cannot legally give investment advice. This article is only to simplify the investing process to those who find it all very confusing.