A Guide To First Time Investing



If you are ready to begin for the first time investing in the stock market your mind is 
probably racing with questions. The first thing is not to panic because there is plenty of help 
for anyone looking to make an investment for the first time. Investing guides, web sites and 
books for beginners abound. The important thing is to take your time and not rush in.

With this being your first time investing you really need to decide on a plan of action in 
advance. You should start by deciding how much you can comfortably afford to invest. This needs 
to be an amount that you can leave invested for a minimum period of around five years. It also 
should be a figure which if the worst came to the worst you could afford to lose. Now I fully 
understand you don't want to lose any of it but it's something that could happen and you would 
be wise to face that fact.

You also have to decide whether you will be investing a single lump sum or whether you will be 
investing through regular monthly savings. This will have a major impact on where you should 
place your money.

After you have decided on the amount you're going to invest you need to figure out exactly what 
you're going to invest in. That means choosing whether to go into the stock market directly or 
spreading your investment more widely by going for say mutual funds. If you have decided on a 
monthly savings plan mutual funds may also make more sense because of the lower costs involved.

Okay with all that worked out you can move on to your next decision. Do you feel confident 
choosing your own investments or would it make you more comfortable having guidance from a 
professional? To get a full service stock broker working for you will generally require an 
investment of at least $3,000 although some will work with you for as little as a $1,000 
initial investment. If you do decide to go with a broker then make sure you do some checking 
around first. It's important that they have a good proven record of success. Take the time to 
speak to family and friends for recommendations as well as calling the Better Business Bureau.

By taking your time to do things patiently and methodically you are far more likely to enjoy 
first time investing success.