To get the Dow for purchase, you want to own DIAMONDS Trust. The stock symbol is DIA and you can purchase that index.
To see other exchange-traded funds, take a look at http://finance.yahoo.com/etf
To check out an ETF, go to www.morningstar.com
Hard & Fast Rules that I adhere (or try to adhere) to:
1) No more than 90% and no less than 25% exposed to the US market at all times
2) No more than 75% exposed to international markets and no less than 10% (including emerging markets); the US market only makes up 45% of the global marketplace.
3) No more than 5-15% exposed to emerging markets
4) No more than 5-10% in gold or other commodities (i.e., copper, water, steel, etc.)
5) No more than 5% in a single country economy (i.e. France, Germany, Russia, Japan, China for example).
6) Consider real estate as an investment option but remember some people say real estate grows on average over time at the rate of inflation while others say it grows at 7-10% per year. Also, consider real estate stocks as "stocks" and not a separate asset class but they are good for diversification. More importantly, remember that as with the stock market, there can be steep drops in the REIT market.
7) No more than 15% in any one sector; this is so critical.
8) No more than 10% in any one stock and you shouldn't make a purchase whereby you invest more than 4% in any one stock or a large portfolio of at least 25-30 stocks in at least 8 different market sectors.
9) No more than 0-20% of net worth as discretionary funds for individual stocks; in other words, stick with mutual funds and especially broad-based exchange traded funds.
10) Only 18-26% of investors can actually "beat" the market thus there's someone like you had an idea to be able to beat the market, but who didn't succeed.
11) Don't get excited about the market just because everyone else is and liikewise, try not to panic unless you have a logical reason to do so. Always have a calm strategy beforehand, review it, and see if it is realistic. If not, you may have to sell even when you're down 50-90%! That's not a position you want to be in. At least 50% you have most of your assets; in a 90% drop, you need a 1,000% increase simply to break-even. That's probably not going to happen and it's much like having to start over from scratch.
12) Always know whether you have a trade or an investment; it is vital to know if you plan to hold more than one year, more than 5 years, less than one month, day trade, or you do a quarterly or semi-annual review.
13) Always seek professional guidance when you need assistance but be sure to get a second opinion before acting on a recommendation. Make sure the advice is sound. Preferably use a fee-only planer.
14) Try to do your own research. Once you have done your homework, you can make a competent decision. Relying on your own judgment is a great strategy.
15) When you invest in the stock market, make sure you can afford to lose the money you're investing.
16) Count a high-yield bond as investing in stocks/equities.
17) Count preferred stock as investing in stocks/equities.
18) Small-caps aren't simply penny stocks; you can find high-quality small companies by doing the research. Remember that AAPL, MSFT, GOOG, and CSCO were not penny stocks when they were introduced; they went through stock splits such that it appears they rose from pennies per share.
19) A stock isn't necessarily expensive because of its price per share price. PE and PEG as well as its price to book value ratio can help you with price.
20) Try to have good stocks with good dividends.
21) Always look at your risk tolerance - extremely important
22) When stocks go down, you can buy more shares and when stocks go up, you can buy fewer shares, thus learn more about dollar-cost averaging.
23) Past performance is no guarantee of future results.
24) Past performance is no guarantee of future results.
25) Past performance is no guarantee of future results.
Good luck with investing.
Disclaimer:
You are fully responsible for your own trades and acknowledge the potential for serious loss.
Aqua