You can find information on specific stocks by typing its ticker symbol  into Yahoo Stock Quotes and looking at the charts, news and basic information for that stock. If you don't know the ticker symbol use "Symbol lookup" in Yahoo Financial. Choose an Internet trading firm to pretend to make your trades using their cost structure for trading. See Internet Trading Sites in the Internet Resources Section. Ameritrade offers one of the lowest cost per trade. Be sure you know the meaning and cost of a market order, limit order and stop order.

Steps to take before making a stock purchase

1) Have a long-term goal and a mid-term goal.

a) What is your purpose for investing. This determines your risk tolerance.

b) How much of this money can you afford to lose.

c) What are the consequences of making a mistake.

d) What is the exact cash amount of your long term goal.

e) What is the long-term growth rate necessary to achieve your goal. Is this realistic?

f) Establish mid-term benchmarks to check your progress using the long-term growth rate.

2) Have a strategy for when to buy a stock in general and when to buy a specific stock.

a) Is this a good time to buy in general, this market segment, this stock?

b) What makes this stock different from it's segment, the market in general?

3) Check to see how many shares you want to buy and if you have sufficient cash.

a) What is your strategy for diversity?

b) What percent of your purchase does the trading commission cover. How much will the stock have to go up to cover a buy and sell commission.

c) Set-up a spreadsheet to check this quickly.

4) What is the over-all market doing at the time.

a) "A rising tide raises all ships" means most stocks are affected by the overall mood of the market.

5) What is the market segment doing. Same as for general market.

6) What is the bid and ask price and the bid and ask size.

a) You buy at the ask price.

b) The size determines if there is enough for sale to cover the number you are buying.

7) Is the market moving fast or slow.

a) In a slow moving stock you may can put in a limit order at the bid price.

b) In a fast market the price may change before you can get the order typed.

8) What recent news has come out about the stock.

a) Always check the news before buying to see if anything has happened to alter the status of the stock price.

9) When is its earnings date.

a) Stocks usually rise before an earnings report unless the rise has already taken place.

10) How often does news come out about the stock.

a) Some stocks like Microsoft will have 6 to 10 or more news items daily.

b) Small stocks like Aware may have news less than 1 news item per month.

11) What are the recommendations for the stock.

a) Check the research section of Yahoo

12) Do you understand the industry or are you gambling or guessing.

a) Is the stock doing something for which you can understand the dynamics of the market?

b) The stock market is not a good place for guessing.

13) Is the stock under fire.

a) Has there been any earnings warnings, lawsuits, bad press, etc.

14) Is this a growth industry or an established market.

a) Growth areas usually have a higher P/E ratio.

15) What is the volatility of the stock.

a) When the market first opens in the morning it usually is too fast to judge.

Steps to take before making a stock sale

1) Have a strategy for when to sell a stock in general and when to sell a specific stock.

a) Hold until it starts down

b) Hold until market changes

c) Hold for the long term

2) Be sure of your number of shares you own and that you have entered the correct ticker symbol.

a) Check the portfolio spreadsheet or trade site.

b) Double-check the name of the stock before trading.

3) What is the over-all market doing at the time.

a) Is the Dow up or down/

4) What is the market segment doing.

a) Is the segment up or down?

5) What is the bid and ask price and the bid and ask size.

a) If you are selling 200 shares and the bid price is for 100 shares you don't know at what price your 2^nd 00 shares will trade for.

6) Is the market moving fast or slow.

a) In a slow moving market you may be able to use a limit order to get a higher price.

7) What recent news has come out about the stock.

a) Check the news before you sell.

8) When is its earnings date.

9) How often does news come out about the stock.

10) What are the recommendations for the stock.

11) Do you understand the industry or are you gambling or guessing.

12) Is the stock under fire.

13) Is this a growth industry or an established market.

14) What is the volatility of the stock.