Everyone knows that the first quarter of 2009 turned out to be the scariest time for a stock investor. Most of people lose their money in the stock market. And now, they are afraid to invest more money in the stock market. But investing is no longer optional for Americans.

Today, everyone must invest. You must invest if you are to reach for your dreams, if you are to have the life you want. You must invest in case you lose your job or become divorced or widowed or want to educate your children. And, of course, you must invest to have the money to do the things you want to do in retirement. Successful investing requires a plan and a strategy

If you are just starting out
Discipline with your plan is the key factor. Set up a plan to invest a certain amount of money each month. Take it from your paycheck if you can. You can do it with a tax-deferred plan like a 403 (b) plan. It works particularly well for young people because the money is deducted from your paycheck before you ever see it. This is a great time to get started as an investor because the market has gone through such an extensive housecleaning. Time is on your side, and time is an important measure of wealth.

If you feel difficult to find individual stocks, you can invest in mutual fund or an index fund that represents the entire market. Diversification is the key to be successful in stock market and mutual fund can do that for you. That way you spread your risk among many stocks and your investment will do as well – or as poorly – as the overall market.

If you are at mid-career
If you are at mid-career and you experienced loss in the recent stock market crash, don’t be afraid. You still have time to make up for the losses you may have experienced in the market crash. If you already have a portfolio of investments in your 403 (b) plan or in a taxable account, don’t be quick to sell them off.

If you feel afraid to invest in single stocks, then my suggestion is to put new money into a mutual fund or one of the exchange-traded funds (ETFs). Like a mutual fund, ETFs contain a basket of stocks sliced up into individual shares. Most of them follow indexes that allow you to pick a market segment, such as developed countries outside the U.S. or emerging markets or the U.S. stock market. But unlike mutual funds, they trade on a stock exchange so they can be bought and sold all day

For you who are at mid-career, don’t forget to keep near-term money liquid in money market funds. This is important in case of the market plunge again.

If you are nearing retirement
For you who are nearing retirement or already retired, don’t invest too aggressively to try to make up for recent losses. Don’t do it. Don’t act on impulse to change your portfolio.

If you decide to never go near the stock market again, that is a mistake. You need stocks in your portfolio to keep up with inflation. Again, I recommend a broad-based index mutual fund or ETF that will go up and down with the overall market.

Revy Azhary’s useful investing stock info. Providing essential information about stock investing, investing online, and real estate.

Source:ezinearticles.com