Confusion sets in quick 
when you're starring at 
mountains of information 
on investing. Countless 
articles and books have 
been written along with 
systems of investing. It 
seems everyone has a
system out there that 
claims to be unique. 
Here's the cold hard
truth and a step-by-step 
common sense guide to 
help your investment 
endeavors.

1.	The first place to propel you into the crazy world of
investing is learning. I'm all for affordable resources like the
rarely visited and forgotten public library or a good internet
website. Learn all you can by reading books, listening to audios
on the subject, hanging around those winners that have already
done what you want to accomplish, and anything else that
provides the knowledge you need to know before the actual
monetary investment is made. You'll never stop learning new
techniques. There's a point to actually do the work and invest
real money, but first, follow step 2.

2.	Once you've acquired the basics, put it to the test by using
a simulation to make sure you truly know how to invest, not just
the theory. You'll save a fortune if you do this exercise a few
times before spending your hard earned dollars. Investing is
about growing capital, not gambling. The person that knows the
least gambles the most. Simulation is a game and it can be a fun
learning experience. Contests are a fun and easy way to learn
and many contests have real money to the winners, and a large
percent of those contests are free to enter. Get involved in one
or more of them and you'll learn to earn with an opportunity to
win cash. Don't feel discouraged if you lose a contest. It's a
learning tool and if you made money at all on paper, it's time
to start actually investing for real.

3.	Research is vital and one hundred percent necessary. Without
it, you might as well throw darts at a board that has ticker
symbols tacked to it or forex markets. Gee! Should I buy that
stock or this currency? Hmmm! Virtually all the trading websites
have tools to minimize the risk. Stop losses can help dampen any
losses, and other tools can help gain profits. Dollar Cost
Averaging can be a friend to the investor with the idea that
automatic investing is ok. A thoroughly researched company or
mutual fund can reap huge rewards over time with this technique.
Be careful to watch and not forget about the investment. If a
stock gets too ridiculously low, there's trouble. The poor
investors of Enron learned that the hard way.

4.	Putting your eggs in one basket is never a good idea. Again,
look at the folks who blew their nest egg on company's like
Enron. And the stock didn't go to zero overnight. It was
gradual. If you told me you invested $100,000.00, and lost
$50,000, I'd say, "Good Job. You still have $50,000 left to do
something with. You pulled out before you lost it all." You now
have to be extra careful and protect your investment and spread
it around. Diversify is one of the best investment terms ever
made. It can protect you.

5.	You only have to be right 51 percent of the time. Don't
sweat. Some of the most famous and influential men in history
died broke, yet they taught others and left a legacy. Money is
not everything, but it has the ability to make life easier if we
just remember that it's just a tool to help and nothing more.

6.	The best investment is in your self and your own business,
and not someone else's. More people become wealthy as business
owners than investors. It's possible to be a great success as an
investor, but the mega rich are business owners and investors.
This goes back to the principle of diversification. If you're a
business owner only, park some of your profits in stock, bonds,
mutual funds, real estate, etc. If your business goes under, you
can have the capital to start another. Most wealthy individuals
have built and lost their fortune a number of times before
learning the value of diversification. Even if you own the
company, circumstances beyond your control can change things for
the worse. Perhaps a new major highway is rerouted past your
place of business and directing traffic elsewhere. You never
know what will happen, so prepare yourself.

7.	The answer to the question is the plan. Proper planning
produces proper results. Without you having a plan of action for
your life, someone else will have one for you. An employer is
not necessarily a bad person, but he has his own plan for your
life. Are you going to let him write your story or are you going
to write your own?