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Your thinking about investing in stocks then? Good choice, its been proven that stocks on average outperform many other forms of investment including cash, gold, bonds and treasury bills. In the short term, one or another asset may outperform stocks, but overall stocks have historically been the winning path, and with the general economy recently begining to take a dip, the market for stocks looks just as good as ever.

There are so many ways to invest in stocks strategies. Individual stocks, mutual funds, index funds, ETFs, domestic, foreign - which one should you choose? These are the following things that you may want to consider as a new investor.

What type of trader?

You may want to get started straight away, so that you can start making the massive amounts of money that you hear about on TV, but slow down and take a moment to� consider� some simple questions. Doing this now could save you alot of money later on.

What kind of person are you? Are you a risk taker, willing to invest money at a chance to make a lot of money or would you prefer a� more certain (if less exciting) investment? What would you do in the case of a 10% drop in a single stock in one day or a 35% drop over the course of a few weeks? Would you sell it all straight away or wait until you can't afford to hold on any more?

You need to consider these questions carefully as they will be a crucial part of the descision to whether you invest in stocks or another type of investment, such as bonds (which are usually suited to those who won't take risks).

Time and Interest

How much and what should you invest in? The answer depends on how much time you wish to devote trading. If you have lots of time then invest in individual stocks because although that means you have to look into the books of the company, and the management etc, this gives the greatest return. If you have less time however, then look into investing in mutual funds, where a trained fund manager does all of the work for you.

Now's the time to invest

Once you've determined the shape of your portfolio, it is time to start investing. Find a stockbroker you are comfortable with, you'll probably need an "execution only" broker (one who only trades your stocks when you ask) either an online broker or one with a local office or both, online brokers allow you to make the transactions online, saving you time.

After deciding what to buy, don't buy all at once, but wait until the right time in necessary. Plan to take several months to invest all of your money to minimize risk. Finally, remember to set aside time each week to review or catch up on the news for your investments, and if possible, every day.

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