Now that we've talked about stocks, we can move on to the issue of investing in them. This will take several threads. Here I just want to list some caveats.

1. Do not invest more capital than you can afford. Playing the market is a gamble, as many have found out. Decide on a percentage you want to go into the market with; an amount which won't put your present financial state in jeopardy. Also, at the beginning level, DO NOT buy anything on margin. That is borrowing money from the brokerage house to buy stocks. If your stock goes down, you'll get a margin call and will have to pony up money to cover the borrowing. When the market tanked this time around, many got those calls, and couldn't cover them.

2. Find your comfort level. How risk oriented do you want to be? Bigger risks bigger rewards, yes. In the old days, blue chip stocks were the most secure, those of the Dow 30, e.g. Now, there really aren't any blue chips anymore. But there still are safe stocks.

3. Develop a strategy. Are you going to be in the market long term? short term? What sort of companies are you interested in? Diversify your holdings for greater protection and less exposure to one stock.

4. Do your homework. Research every company you have an interest in. More on what to look for in a future thread.

5. Find a good broker or financial analyst. They generally have access to more info than you do. But, if you're going to do all your own selections, go for a discount broker like Schwabb or T D America. Their commissions are lower because they don't have the research depts to support. Otherwise, find a full service broker for greater research.

6. Keep an eye on your stocks. If the price starts tumbling on bad news, probably best to get out of the position with a loss.

7. Be patient. The market is all over the place right now. Stocks are roller coastering all over the place. Bear in mind that at present there are some enormously low prices on excellent stocks.