Ask Doug

How Do I Get Started Investing in Stocks?

Q. How do I get started in DRIP investing? What stocks should I look at, and how many stocks should I buy?

A. You should never invest in a DRIP just because the fees and minimums are affordable. The company should be selected based on its potential to grow its share price over time.

I have developed a five-step program for identifying and investing in stocks that helps identify those with the best long-term potential. It's currently used at StockCentral.com, a web site that provides tools, data, and community for long-term, growth-oriented investors. The site includes a Stock Screener that allows you to find stocks that meet your criteria for growth and value, and an Instant Stock Analysis™ tool called Take Stock (click the link to try the tool for free).

StockCentral includes other tutorials and information to help you learn how to invest soundly in stocks. With these tools you can become a smarter investor in no time!