Recommendation for beginners
1. Never time the market. There is a huge list of the stock experienced people but nobody ever can have you the right time you should have to invest. There is no legitimate ways to predict the right trend for your investment.
2. Buying on periodic basis. If you want to go for a periodic buy like paycheck that you want to use once in a month or a year. You are at the right step to buy it for an average price.
3. Stay there. If you buy a stock for 1 or more than 1 year, you are going to have taxed that will be gain for you that are approximately running with 18% for now. If you sell it before, you will be responsible for the tax rate that is quite higher that even 18%.
4. Invest in tax shelter stocks. This is a good practice, indeed. Do not worry about the tax implications. The return for your investment will grow on a higher basis that will refund you with a paycheck. Always give as much as possible with the tax sheltered investment.
5. Be diversified. You do not have to stick with the investment in stocks only. Go for other asset like housing, saving and sometimes bond as well. If one class really underperforms, you will have some exposure to the better performance.
6. Mutual funds. Do not try to stick with 1 or 2 great performing stocks. They are not only option for you. Go for many different stocks if you do not have a high portfolio for investment, either. You have to always buy more and more different mutual funds for a better start and fruitful result as well.