Investing In The Stock Market - Advice For Beginners

Basic Stock Market Tools
Before investing a single cent, it's a good idea to educate yourself on the basics of the stock market. 

I have always found that if you want to understand something at an elementary level, then you need to go to an elementary source.  Therefore, I would start with some children’s tutorial sites.  (Remember, I'm learning right along with you, so these links are as much for myself as they are for those who are interested in learning about the stock market for the first time.)

Thinkquest teaches kids about investing with games quizzes, and beginner, intermediate, and advanced instructions.

The Mint explains what the stock market is in simple terms.  The site also tells you about ways to invest and informs you of your risks and rewards. 

I also recommend purchasing a couple of elementary stock market books such as The Neatest Little Guide to Stock Market Investing and The Stock Market: How Economics Works by Donna Jo Fuller. 

Practice First
Playing might be for children, but it makes good sense to “play” stock market before actually investing any money. 

There are lots of mock stock market activities that you can participate in to get an idea of how you apply your stock market knowledge. 

The Virtual Stock Exchange has a FREE online trading game that will allow you to “play” publicly or privately, test your strategy, and manage a personal portfolio.  It also allows you to research the stock market on an adult level. 
 
Even after you feel like you have a bit of stock market knowledge, you still need to research your stocks. 

Here is a step-by-step tutorial on how to research a stock before you invest, using Cheerios as an example. 

Start Investing
Once you feel comfortable trading in stocks, and have a bit of money to work with, it may be time to start investing. 

If you want to begin investing immediately, you should know that we are currently in a bear market -- meaning there are more losses than gains at this particular time. 

Here is a great Bear Market Guide that you should study before you jump in and begin investing in the stock market. 

If you don't exactly know where to start investing, check out The Best Mutual Funds You Can Buy.
 

Investment Fraud Alert
Finally, be careful to not fall for investment frauds.   Frauds will try to sell you “hot” stocks. 

Wondering what frauds look like?  For starters... aggressive sales, absentee brokers, advanced fee requests and further demands for money are some of the warning signs you should look for.

Check out these 5 tips to overcome your fear of the stock market.