I'm fairly new to investing and would like to use it as a tool to acheive better financial security. I'm in my mid-twenties and have two preschool age children. I have nearly finished my Masters and am going to begin construction on my first home (4 bed, 2 bath) in 2008. I'm not sure what investing style suits me, but I like the idea of making multiple trades each month.

You will likely lose money as a new trader, so only risk money you don't need. Think of it as another college course and the money you lose is your tuition. Take advantage of Zecco $0 comissions then trade very small lots 1 or 2 shares. Most important thing is learn to manage risk and protect your capital. Good Luck!

If you'd like a buy and hold style (holding period > 6 months), the concept of fair value is very important. You buy the shares below fair value (of course) and sold it at or above fair value level. Yes, doing a trial trade for 1-2 shares with Zecco is a good starting point to learn since their commission is zero.

So I often tell new investors to check out http://www.investopedia.com It has free stock games (stock simulation) there are a variaty of games to choose from (starting amount of "money" , interest and commission fees, and so on so you can choose the correct game(s). You can get a feel for what style you enjoy the best, learn from your mistakes and prepare a little more for real investing. Also, there are articles and a investing dictionary for new investors. Good Luck investing!

I have invested in blue chips, penny stocks and built shares in sharebuilder. To me you can do the same here at Zecco. I am in my late forties and will retire from my job in 3 1/2 years. I think I will be able to build enough shares in good High Yield Funds and Dividend stocks where they will be paying out when I get older. If you want to explore that is great, but maybe you could start building some shares of High Yield stocks or funds for your children. You may get a huge head start on those college funds. Just my opinion, good luck which ever way you go.

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Recon

Indeed, all good comments above.

Above all else, educate yourself with good, reliable sources as to different strategies. Learn about Dogs of the DOW, Seasonality, Dollar Cost Averaging, Acummulation, Dividend Investing, etc. I run my own educational blog at http://investorandtrader.blogspot.com/ but it is no means the only avenue of education out there; since I also go with Futures options, which for those without experience can be just a tad risky. There are plenty of good sites, that offer a lot of sound, reliable education for the new investor.

By all means, whatever you do - stay away from pink slip penny stocks!

Like some of the others are saying.... start slow. Use a little real money at first, say 10% of whatever your initial cash your going to plunk down. Use that 10% to learn... If, after say 6 months, you havne't lost much (the most important thing), then use more real money.

I think the best way to not lose much is with a stop loss order, which a lot of people DON'T use. Anyway, good luck.

So you got a lot of good advice, and I am going to add more... Alot of new investors will watch a investing show and hear of the stocks that are way up and that they have done really well. In most cases these stocks have hit a peak and buying now will only hurt you (in most cases..., aapl on the other hand is a freak of nature) The stocks you should look at are the stocks that are currently in a slump, but still have a sound/ and strong business plan/ financials. I like to buy stocks when I see them dip down, because I know that they have the potential to grow back to where they where. (Buy low, sell high.) Make sure you get your hands on some books also.

I like to watch Mad Money, hosted by Jim Cramer every evening. I look into the stocks he recommends.

Check out this website:

http://madmoneyvids.awardspace.com

It has special edition shows of Mad Money that you can download, watch and learn from.

And Cramer recommends atleast one hour per week per stock.. correct?

Also should point out the next day after Cramer announces a stock he likes, there is a "Cramer Bump" where the price has bumped up due to his show, be sure if you want to purchase a stock he likes to buy after the bump has settled.

Great advice so far. Here's what I have done so far: I made my first trade at the end of Sept/beginning of October. I bought a few shares of MSFT. My thought was that I was scared to invest and I wanted a stable company to begin with. By the end of October I had 110% of what I started with. When the markets started dropping I lost half of what I had earned and converted my account to cash. I recently got back in this last week buying KO, PEP, and MCD. Again I figured stable companies...dividends...kinda thinking down that path. Besides that I'm going into the busiest, most stressful time of the year at work...I don't want to feel like I have to keep my eye on my account every second of the day. I would like to invest a little more actively than buy and hold, but I am not interested in day trading. I'm also trying to determine what level of risk I'm willing to take. I'm in my twenties so I have plenty of time to take risks and not be affected by them. This does not mean that I'm interested in penny stocks and pink slips (which are well out of my risk tolerance level).

I began with real money instead of a "fake account" because I know that I would trade completely differently if the money isn't real and, therefore, figured I might as well jump in. As far as investigating the stocks I choose, I feel like I can adequately read the financial statements and understand the ratios. However, I definitely lack understanding in the different methods of stock trading. What are your recommended resources for picking stocks? I still feel completely at a loss for researching other than reading articles, looking their price variations, and pulling up their financials.

If I may suggest, go into a Zecco group that interests you and what you may think that your trading style may be. Click on members and seek out the top performers in your group and pick their brains. That is what Zecco is for. They will share ideals with you stocks and the reasons they like those stocks.

If you are looking for a site that will give you stock ideals, you can check out top rated stocks on MSN. But again picking the brain of a top 5% would be just as good if not better.

Check out High Yield Investing, look around all the sites and good luck.

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Recon

i to am i new investor and i think picking the people that are in the top 20% are the way to go along with an hour a week per postion

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scott garrett
wealth for today- lottery secrets
increase your odds 95%
www.lotterysecrets.net