When it comes to investing, it pays to know what you are going into.  Here are some tips to get you started -

1. Pay off your debts before you invest. Clean up your finances before you invest. You are guaranteed to save money on interest when you pay off your bad debt. Remember that when investing money, there is no guarantee that your investment will grow. ; especially when you are new at it.

2. Understand the market. Do your homework and get to know the market. Do not trade until you have sufficient knowledge and understanding of the pros and cons. Learn what it has to offer and understand the risks involved. Know the different types of investment before you jump in.

3. Know your risk tolerance. Understand your risk tolerance and formulate your investment strategy based on your risk profile, goals, and time frame.

4. Create a plan. Have a solid strategy and always remain true to your plan. While you may be tempted to follow what others are doing, it would be in your interest to follow the style that works best for you.

5. Research. Learn how to read Cash Flow Statements, Balance Sheets and Income Statements. Never buy and sell if you do not understand what you are buying or selling. When starting out, you may opt to use asset allocation and rebalancing strategy with investment vehicles like ETFs (Exchange-Traded Funds) and mutual funds.

6. Choose investments that are easier to cash in. Limit your exposure to investments such as collectibles, commercial real estates, and limited partnership. They are difficult to sell quickly at a price close to its market value. On the other hand, investments such as stocks and bonds give you greater flexibility and have great historical performance.

7. Time equals money. The more time you have to invest, the more money you will make. Imagine the difference a decade will make. Start as soon as you can and watch your investments grow.

8. Patience is a virtue. Learn how to control yourself. Never get into the market because you are eager and never get out of the market just because you are panicking or losing your patience.

9. Do not be an active trader. Buy and hold on to your investments for a longer period. You are paying more taxes if you sell your winning investments less than 1 year and 1 day from your date of purchase.

10. Be tax efficient. Invest high yield investments or funds with large distribution in your tax-sheltered account. With taxable accounts, consider trading out your losses before the end of the year to offset your gains.

Watch out for part two of stock market investing tips.

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