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Investing in Stocks: How do I start?

I'm considering giving investing in stocks a shot but need to learn the ropes. Can you give some tips and advice on how to start? Any advice is welcome.
- Nandita, Indore



I am glad you are trying to learn the ropes before jumping in. Congratulations! You already have a head start over most newbie investors.

Like in everything else in life, there's nothing like starting early. Consider this popular article about the benefits of starting early and why you should invest, starting Today! Some other articles that will be really helpful to get you started, can be found in our Investing Basics series.

Next, I would recommend you to start equipping yourself with a solid grounding for investing in stocks. 3 must read books. If you haven't heard of these, buy them NOW, today. They will be your invaluable guides to safe & prosperous investing and future wealth creation.

1. Intelligent Investor - Benjamin Graham
Considered the bible for all investors, this will foremost teach you the basics and most importantly, how not to lose money. That's the first lesson you need, believe me.

2. One up on Wall Street - Peter Lynch
This is another classic. Tells you how to spot winners from what you see around you - successful products, companies, where are the longest queues? Practically shows you how you do not need to be a hot shot financial analyst to be able to spot good opportunities for investing in stocks.

3. Common stocks and Uncommon Profits - Phil Fisher
As you dabble for 1 or 2 years, make some money and also make some (hopefully) small mistakes, you will start itching to catch the multi-baggers, the ones that go up 4x-10x in a few years! This book tries to show you how to sift out probable winners. It's hard to put in practice by everyone, but some sound principles to apply when looking for the best businesses.

Start listening in on the financial channels, start reading a business daily, daily. Check out some excellent investing basics articles at great sites like
About.Com
Investopedia.Com
Kiplinger.Com

And ask questions to the more experienced investors at popular forums, hang in and lurk at some of the great investing forums for pearls of wisdom. When you have a query that you just have to have answered post a quick one. You will be surprised, there are enough people willing to help you with your queries - even if it's a basic one. You may like to consider The Equity Desk - a solid stock investing forum, focused on India stocks.

Good Luck. And get cracking, TODAY!


Related Investing Basics Articles, you may like to consider:
Why should you invest
How to Invest: basic principles
How to Invest: your investment profile
Where to Invest: asset allocation


Related Investing Basics Questions-&-Answers, you may like to consider:
How should I invest to accummulate 50 lakhs in 10 years?
Investing for my son’s (10 months old) career. Best plans suited for me?
How should I invest my money for growth with security?


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