Investing in securities can broadly be classified as investing in bonds and stock market investing. How much you apportion for each depends on your risk taking capacity. Bond investing is safer compared to stocks but bonds give lower returns, particularly during inflationary times. Stock market investing, on the other hand, can be quite profitable but come with more risks: stock prices tend to fluctuate often.

Some of your money should be invested in bonds, while your balance money should be invested in stocks. The younger you are, the more you should opt for stock market investing, investing more in bonds as you get older. When investing in the stock market you should invest in shares of companies with a potential for growth and a good track record.

Shares come in different sizes and categories. There are large, mid and small caps and there are penny stocks. As a beginner, you can invest in large and mid cap companies and only after you gain experience, you can consider investing a small portion in small caps and hot penny stocks. These are the riskiest but if handled adroitly, give the largest returns. However, it needs expertise and nerves of steel.

Jumping right in stock market investing is not something one should do. On should start spending some time to learn the basics of stock market investing along with its various aspects. As you start gaining knowledge, then you should start investing small amounts of money over a period of time rather than investing all the money at once.

If you're looking for a simpler investment strategy than stock trading, consider investing in bonds. Top-rated government and corporate bonds are easily available from your local banker or broker. Keep in mind, though, that bond investing yields gain over a longer time span. The nature of the stock market makes share investing appropriate for not only short-term investors, but also those who have an extended time frame.

Do not consider the tips from others on which share to buy especially in the case of riskiest investments such as hot penny stocks. You can consider these risky investment options only after thorough research on the company concerned and all other related factors has been done. Have a good time investing!