The Beginning Investor's Kit

Have you been sitting out this bull market because you don't know how to get started? Or, maybe, you're just hesitant to start investing? Look around, there may be an easy opportunity for you to jump in.

Say you've got a CD earning 6.5 percent and it's about to mature. You'd love to put it into something, but you think a broker will scoff at a novice like you, or the commission is going to eat up a chunk of your cash before you ever buy anything. Thanks to the wild, wacky Web, this is a new era for investing. Your concerns are no longer valid.

A Different World
If you decide to go solo, with an account through an online broker, you can completely avoid human interaction--if YOU choose. In fact, the good online brokers make reams of great research available through their Web sites, so you can look into stocks at your own pace, sifting through information like earnings reports, analysts' expectations, and insider trading activity.

And the cost to buy or sell up to 1,000 shares via the Web? Under $30 for brokers like Schwab, and under $15 for online brokers like E*TRADE.

But you don't have to buy a thousand shares. Start small, in 100-share lots (or less), for example, to get your feet wet. By paying a commission that's less than a good Macanudo, you'll have the opportunity to log on and watch your stock move up--or down (don't forget that, either!).

Maybe all of this sounds great, but you're still not ready to plunge into the market on your own. Consider creating a watch portfolio.

Next: How to Set Up a Watch Portfolio >