The purpose of online investing for beginners is to help gain an understanding of what is required to become a successful investor in stocks. The fact is most people do not fully understand what the stock market is about and many consider investing in stocks to be equivalent of gambling.

Successful investing in stocks requires a good understanding of some key financial concepts including stock fundamentals and how to successfully manage a stock portfolio. Firstly you need to decide if you are going to actively day trade or use a buy and hold strategy. This will depend on the level of risk you are prepared to tolerate. The greater the risk the greater the potential reward.

Fortunately there are a multitude of online sites with training courses and books all covering the subject online investing for beginners and you will find links to the best of them here.

The Rewards
Stocks have typically outperformed all other investment options over the past 50 years. For example $1000 invested in Dell in 1998 would be worth $396,900 as of July 2005. If you invest $1000 for 10 years compounded at 6% monthly would yield $1,088,188.00. A return of 6% monthly trading stocks is possible but will require a very good understanding of stock fundamentals, technical analysis and money management.

The Risks
Almost all investments involve some risk and the same is true in the stock market. Stock prices will move up and down in response to company performance, inflation or world events like wars and natural disasters. The key to online investing for beginners is to understand the risks involved and use a strategy to minimize your exposure. 90% of investors do no analysis of the stock the are buying. They rely on tips on forums or TV or the newspapers and them they wonder why they are loosing money.

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