Losing your money in stock market investments may be a fear of yours. With a little study in the stock market, you do not have to lose anything at all. This article provides a great deal of advice which can help you to ensure your losses dont exceed your returns.

Investing is best done with an eye to the long term. There are very few people who will succeed at moving money in and out of investment vehicles, if they try to catch day to day trends. Most people just end up losing their money and getting frustrated. Look for solid companies or funds with a long history of good returns and stay the course.

Dont let greed or impatience control your decisions when it comes to investing in the stock market. Buying low and selling high is a common tip because it makes sense to buy a stock when theres a higher chance that it will rise in price, even if you have to wait for a while.

If you have some spare money to invest consider putting it into your employer-based pension plan. Many companies will match a percentage up to 100% of the contributions made by its employees, and this is basically the opportunity to receive free money. If you dont take advantage of this, it is tantamount to wasting quite a substantial opportunity.

Keep in mind that investing is a business, not a hobby. Youre doing this to make money, not for fun. Any time youre doing something regarding your investments, whether its getting a magazine subscription or investing in a new stock, you need to sit down and ask yourself whether its going to help you make money, or if youll lose money from it.

Familiarize yourself with past performance of each company that you contemplate investing in. Although past successes arent definite indicators, companies that do well often also do well in the future. Profitable businesses tend to expand, making profits more possible for both the owners of the business and the investors, like you!

Create your own index fund. Choose an index you would like to track, like the NASDAQ or Dow Jones. Buy the individual stocks that are on that index on your own, and you can get the dividends and results of an index mutual fund without paying someone else to manage it. Just be sure to keep your stock list up to date to match the index you track.

Save money by trading online. Search online for firms that offer cheap stock trading. Quite often, their fees are much lower than traditional brokerage firms. A regular broker will usually charge a high commission, just to make a simple stock trade on your behalf. If possible, try to pay between $7 and $10 per trade.

As you can see, the stock market isnt a dangerous investment if you know what youre doing. The tips you read in this article should help you figure out the difference between a wise investment and a risky one. Invest your money wisely, using these tips, and watch it grow!