The new age of consumer retirement accounts and earning extra money is centered around investing funds in securities like stocks and bonds. Over long periods of time it is easy to become rich by investing in multiple stable companies. Here is how to invest in securities prudently as well as where to find some of the best stock tips.

Cautious Stock Market Investing

Putting money in the stock market is a great way to build wealth - however, individuals should be cautious. There are a variety of scams and business persons selling questionable programs that tout techniques claiming to get you rich making money in the stock market.

Day Trading through Technical AnalysisIt should be noted that it is very difficult and risky to make money quickly buying and selling securities, especially for a novice trader. Those that do make a living making quick cash on the market spend hours every day researching market trends and ques, investing large amounts of money and usually have information about specific companies that is otherwise inaccessible to the average person. They take huge risks every single time they trade, have tens of thousands of dollars in capital to use, and are willing to spend hours poring over complicated charts.

The best way for the average consumer to make money in the stock market is to spread their money across many stable companies for a long period of time while continually adding money in through an automatic savings plan that deducts a specified amount from your checking account every month. These methods of investing are known as diversification and long term investing.

Finding Stock Tips for Companies to Invest In

There are a variety of places to find stock tips or advice about what types of Wall Streetcompany stock to buy. Avoid specific tangible information especially if you are a member of the organization you are investing in. Depending on the type of information, this could be viewed as insider trading which is a federal crime. Examples include intimate knowledge of a company's impending success or failure that can drastically influence stock prices, specific information about a stock price change or other intimate knowledge of securities directly obtained from corporate executives or other knowledgeable individuals.

Stock brokers are a valuable source for legitimate stock tips. In fact this is one of the primary services of a brokerage firm which is to do market research and make recommendations for stock purchases to its clients. National brokerages such as Edward Jones, Fidelity, Scott Trade or E-trade provide detailed and methodical reports and recommendations for stock purchases to their clients.

Another good place to find tips for making informed stock purchasing decisions is on mainstream media news outlets that feature financial industry and investment veterans. These professionals offer opinions on industry as well as individual companies that they think will do well or poorly.

A Final Word on Stock Market Investments

Whatever your investment plans keep in mind that the market carries with it a lot of risk and spreading your money across many investments will help to minimize that risk. Corporate and government bonds are generally even less risky than stocks and can bring down the overall risk of your portfolio. Information about good investments to make can be found in everyday sources such as stock brokers and other industry professionals, as well as subscription-based investment magazines and newsletters.