Investing is a topic that you can study for a long time before running out of new material. You don't have to be an expert to get started, but it helps to know the basics before you set a strategy for investing.

1. Beware of the "Sure Tip"
   Investment ideas often sound tempting, particularly if they come from a professional. Some companies pay their sales staff a commission to sell certain investments. Do your homework before investing. Never rely on a "tip" without checking it out first. There are companies and mutual funds on the Yahoo! Finance site. At the very least, if you prefer to delegate the research work, get a second opinion from someone who has nothing to gain from your decision.

2. Understand Risk and Reward
   Investment risk means you can tolerate some losses while waiting for some gains. When you invest in the stock market, risk is a given. There are many levels of risk, from the relative safety of cash (e.g., bank savings accounts) to the high-risk world of stock futures. The amount of risk you can stand is the amount that will let you sleep at night while your money is invested.

   Generally, the longer you have to recover from a loss, the higher the risk you can afford. But the overall risk tolerance varies from person to person and is something you must know before you start investing.

3. Know Your Risk Tolerance
   Determine your tolerance for risk by completing any of the questionnaires available at financial publications such as Kiplinger's. Keep in mind that, if you decide to risk more than you normally would, you will most likely manage that investment emotionally rather than intellectually. You may panic at the first sign of trouble and sell when you should be buying.
   

4. Spread Your Risk
   Don't put all your eggs in one basket. Take advantage of the benefits of diversification (spreading out your risk) and asset allocation (investing in a variety of funds). Your Thrift Savings Plan, which may be invested in index funds, provides plenty of opportunities for diversification. Mutual funds, in particular Life Cycle funds, can achieve diversification and asset allocation for your investments outside the TSP. Learn more about these at Morningstar.
   

5. Don't Believe in Market Timing
   Research has shown that attempts to "buy low and sell high" often fail. Big market moves often happen within a short time frame. By the time most people decide that the market is "going up," most of the money has been made. Rather, consistent investment over long periods of time has generally paid off. Refer to the sections on Dollar Cost Averaging and Share Purchase Plans and Dividend Reinvestment Plans.

6. Do Your Research
   Finance experts disagree on whether it's possible to "beat the market." Those who say that you can beat the market recommend extensive research to uncover information about stocks that are under- and overvalued. Others say that market movements are random and stocks are always priced correctly. This debate will not be resolved soon—perhaps never.

   You will be a calmer (and maybe richer) investor if you do your homework. Researching stocks and mutual funds before you buy has many benefits, whatever you believe about the market. It may not enable you to uncover hidden gems, but at the very least, it will focus your decisions, provide information about the costs of investing, and provide some protection from being victimized by financial predators.

7. Keep Your Costs Low
   Do your own research at Morningstar and Yahoo! Finance to find quality no-load mutual funds with low expense ratios. If you purchase stocks on your own, consider buying through Share Purchase Plans (Sharebuilder), a deep-discount brokerage (TD Ameritrade), or directly from the company (determine whether you can do it by reviewing the Investors section of the company’s website).