Stocks Investing Guide

How to Use the Internet to Invest Wisely

If you want to invest wisely and steer clear of frauds, you must get the facts. Never, ever, make an investment based solely on what you read in an online newsletter or bulletin board posting, especially if the investment involves a small, thinly-traded company that isn't well known. And don't even think about investing on your own in small companies that don't file regular reports with the SEC, unless you are willing to investigate each company thoroughly and to check the truth of every statement about the company. For instance, you'll need to:

  • get financial statements from the company and be able to analyze them;

  • verify the claims about new product developments or lucrative contracts;

  • call every supplier or customer of the company and ask if they really do business with the company; and

  • check out the people running the company and find out if they've ever made money for investors before.


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How to stick to a household budget
and have extra
money for investing

1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

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