The Handy Investing Answer Book. Paul A Tucci

either indirectly through brokers and advisers, or directly through their retirement plans and personal investments. Another widely held belief may compare the investment in stocks to gambling in Las Vegas. This is also an erroneous belief, as with proper research, risk analysis, long-term strategies, discipline, and diversification, an investor can actively obtain his results without ever having luck involved in the equation. Yet another widely held belief is that stocks that rise in price over time must always come down. Many experts assert this is simply incorrect, as some companies are so well managed that their stock price may continue to rise even when purchased at a high point. Over a longer period of time, the stock’s price may continue to rise. And finally, that only a bit of knowledge about the complexities of investing in the market is enough for all of us to invest in the market. This belief may also cause many problems with new investors, as it takes a considerable amount of learning, training, and understanding of this complex system in order to do well as an investor.

      Another widely believed myth is that investing in stocks is about as safe as gambling in Las Vegas. With proper research and help from a professional, it is actually considerably safer.

      How do I begin setting up a brokerage account?

      You can easily set up a brokerage account by completing and submitting an online application or mailing a completed form that can be downloaded from most brokerage firms’ websites. The form asks for basic information about yourself, and may also ask you to fill in some personal financial information, such as your annual income, net worth, investment goals, likely frequency of trading, etc. You may also be asked to associate your new account with another external bank account, or use the firm’s banking products, if available. You may also be asked how you wish to keep your uninvested cash on hand. Many firms will give you different choices for how you wish to save or invest this cash, used to execute trades and invest proceeds. Many firms will require some sort of minimum deposit to begin trading, so you should check with each individual firm.