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Here's the most important/useful advice you can receive: Go out and buy a couple of books, watch CNBC nonstop (and Bloomberg if you can get it), read, read, read, and read, and open a virtual account and start practicing. You def. dont want to begin investing on real money, trust me.
Also, I what you hear on CNBC and read in the WSJ is already old news by the time you read it, therefore, don't trade on that news. The majority of times "smart money" knowns about the news and has already begun distributing stock, resulting in a quick top and no upside with high risk on the downside.
If I were you, I would determine what you're risk profile is. If you are young and making good money (aside from your investing allocation), then maybe you have the tolerance to take more risk and invest in smaller-cap, more volatile stocks. For example, I am 20 years old and can stand to lose money. I trade only on technicals and hold a position for at MOST a month. If you're older and can't afford to lose an exoberant amount of money, then, invest in large to mega-cap stocks and just sit (which I don't recommend).
Don't go with a mutual fund. It really is a subpar instrument. Why invest in a fund that holds some winners and some losers? Learn what you can, and being investing so that you can avoid the losing issues that are included in the fund.
I would also recommend dabbling with options. Once you learn a good deal about stocks and feel comfortable, begin reading/learning about options. They are an INCREDIBLE tool that are MUCH more versatile than equities. You will be able to purchase ALOT mroe stock (potentially) and limit risk by more than half. But, along with these benefits come the complexity of options.
I personally trade options, not equities. If you know what you're doing, there would be no reason to hold equities (unless, of course, you are interested in holding onto a position for more than the option's expiration, and, in that case, you can trade LEAPS instead of equities). using technicals, I ONLY trade options.
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