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Step 1
Consider your goals for investing. You can find hundreds of stock investing strategies. But unless you know your goals, none of these strategies will help you. Consider whether you're investing for short-term or long-term profit.
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Step 2
Decide your risk tolerance. Any method of stock investing requires risk. Decide how much risk you are willing to take and search for a strategy that matches your comfort level.
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Step 3
Consider investing in a mutual fund. A mutual fund is a stock portfolio that is managed by a professional money manager. A mutual fund with a solid performance record is for you if you don't have much money to invest. These can also be less risky than investing in individual stocks. By investing in a diversified mutual fund, you spread the risk over more stocks than you may be able to afford in your individual portfolio.
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Step 4
Consider an index fund. An index fund seeks to mimic the performance of the market as a whole. This can be a good option if you'd rather begin to invest your money without waiting for the time it will take you to learn the ropes.
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Step 5
Practice first. Before risking your money, practice your trading with a computer program or website that allows you to paper trade with no investment. Services like Google Finance allow you to create a mock portfolio and test your skills in real time. Early on, it is better to make mistakes when no money is on the line and practice your strategies to determine if they will succeed in the real world.
