A lot of people want to get involved in the stock market — after all it is a great way to make money.  However there are a lot of common mistakes that are made.  These common mistakes are the reason why so many people fail at the stock market.  Here are five tips on investing in the stock market.

1. Buy low, Sell High.  So many people do the exact opposite.  If you buy high and sell low you actually lose money.  Before you buy a stock watch it for a few days.  See what it does, and then buy it while it is low
2. Rotate your purchases.  Do not buy stock in the same company month after month.  Pick two or three diversified ETF that represents the entire stock market.  See tip number 5 for reasons why
3. If you are just starting out, invest in the Wilshire 5000 or the S&P 500.  With these, you own small number in many different stocks — so if one company goes under, you stay afloat
4. Do not spend all of your money.  Take a portion of it and see how the process plays out.  Start small and work your way up.  No need to dive into the deep end of the pool when you cannot swim.  The stock market is not a guaranteed way to earn money — you can lose a lot of money here
5. Diversify!  Spread out between a lot of stocks.  Do not spend all of your money in one place — this can make you lose all of your money very fast

Justin

http://www.PublicRadar.com