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the point is to avoid brokerage fees, and to spread your risk out. For any beginning investor, there is no way you can build a sufficently diverse portfolio that will diversify your risk.
Do not try to play the markets or try to pick stocks. It probably won't work.
My advice is to stick with no load funds, especially index funds. Things like the Dow or the S&P500. That way you're essentially buying into the growth of the economy.
Remember to have at least 2-3 months worth of expenses in liquid assets ( cash or money market funds) before you start investing. Remember that stock investing is for the long term.
And take any advice you get with a big pinch of salt. ME? i just got out of college. no money to invest. but if i were to invest, that's what i'd do.
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