Investing on stocks and bonds is an effective way of utilizing your money, a significant amount of your extra money specifically. First advice, make sure you have an allotted budget for buying stocks and that budget should start with an odd or even number plus three zeros following it. After sending your money to the stock market, you are not allowed to just pull it out whenever you need it. I was a college student back then and it was my first time to invest in stocks; I was totally unaware of the budget thing and just pulled cash out straight from my wallet. Though the broker warned me of this, I invested it anyway because I was excited at the same time. It was not a good first time because I invested under a thousand and it was not extra money. Start with at least 3,000-5,000 to invest in stocks; it will give you a good return.
Now that you have saved for your budget on investing, know what kind of investor you are and what kinds of stocks match your preferences by visiting a brokerage firm. For first timers, it is good to be safe and invest in stable companies where the stock prices do not dramatically fluctuate; the kind of stock these companies offer is the blue chip stock and companies that offer these are called blue chip companies. Blue chip was the kind of stock I invested in on my first time because the broker suggested it, which goes to show that I am the conservative type of investor. If you are the aggressive type who does not mind risk, then investing in companies with stocks that fluctuate is the kind of stock for you.Risky investments can either give high returns or make you lose the money you invested to that company on the stock market. That is why monitoring your investments everyday is very important. If it is the first batch of stocks you bought from a company you selected in the brokerage firm, then observe the rise and fall of their stock prices and get to know that company to help you out a little in predicting the fluctuations. If you want to sell stocks, choose the day when their prices are high or at their peak; if you want to buy stocks, then choose the day where their prices are at their lowest.There may be an online stock trading system though but going to a brokerage firm and asking brokers and investors there is a good start in learning about stocks. On the brokerage firm I went to, investors there were mostly senior citizens and I was one of the few younger people in there. They were very knowledgeable about companies and their stocks, and they were a great source for knowing more about stock trading. Most of the time I could never understand what they were talking about but after hanging out there for even just an hour in my spare time was a lot to make me understand these things very well.For more Investment News....Click here