If I could give one bit of advice to the beginner who wants to invest in the stock market, I would say, DON'T!! You should first, consider a mutual fund where an expert with a track record manages the fund for you. However, if you are just chomping at the bit to get your chance to buy some stock, I have a few tips that might be helpful:

EDUCATE YOURSELF: With all of the tools available now for the investor, you don’t need to leave the house to educate yourself on the markets. Personally I think CNBC does a wonderful job of informing the public about the markets.

For an entertaining introduction to the stock market, watch “Mad Money.” Jim Cramer has made it his purpose to help people make money in the market. No, I don’t know Cramer nor do I work for him! I recommend him simply because he will give you some good, free advice on his show and he breaks it down for the viewer so that it is easy to understand. Watch or TIVO, his show and as many others as you can on CNBC.

If you listen to this type of programming often, you’ll be surprised how much you will absorb by osmosis! Also, read a book about the markets. Cramer’s book, “Mad Money,” is a good one. He’s crazy as they come, but knows his stuff. There are tons of other books out there as well; buy one and read it.

DO YOUR HOMEWORK BEFORE YOU BUY: Never buy a stock just because a friend gives you a “hot tip” without researching it yourself. As it is said, there is nothing colder than a hot tip gone south. There is so much information available on the Web these days, you can easily find out a specific company’s earnings, number of outstanding shares, stock price, the high and low for the year, and the recommendations from the major wire-houses on the company you are considering. Yahoo Finance even offers real-time stock prices on line.

DECIDE YOUR RISK TOLERANCE. This is a fancy expression for “how much money can I afford to lose?” Once you have decided how much you have to invest, you should also ask yourself, “I now know how much I can invest, how aggressive do I want to be?” It is simply within some people’s nature to be conservative; this investor would rather make less money on the upside than gamble on something risky.

USE STOP LOSSES to “stop” out of the stock if the share price drops below a certain dollar amount that you decide on. In this way, you will cut your losses and exit the stock when it begins to fall lower than you are willing to accept.

If you are a conservative investor and who doesn’t like to take chances AND you want to invest in the stock market rather than a CD or Money Market Account, then buy BIG COMPANIES WITH GOOD EARNINGS. This in no way guarantees your money! However, investing in a good company for the long haul is seen as less aggressive than investing in a new name; a high-flyer that can crash and burn as quickly as it soared upward.

DIVERSIFY if you can. Invest enough to buy companies in different areas of the market so that if the market slumps in one sector, you have investments in other sectors. For example, 5 sectors that you might choose might be as follows;

An oil company

A pharmaceutical company

A telecom company

A tech company

A retail company

BE CAREFUL! Some companies cross many different sectors and you might not be as diversified as you think you are.

KEEP IT SIMPLE. While you are learning, never try options, (calls, puts,) and never, ever, ever buy on margin! Buying on margin means that you’re buying on credit, to simplify it. You can get into big trouble here as many people found out quickly when the tech market fell apart in 2000! When starting out, unless you have money to burn and you are a gambler who can afford the loss, you are in no position to buy on margin.

Invest only what monies you can comfortably afford. The cash that you invest should be in your hand, not on loan, when you buy stocks. Don't expect to kill 'em. Be smart or you could find yourself dead in the water.