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Before you buy stocks (or any type of investment), think about where your money is going and how it will grow over time. Your first step should be to open a brokerage account. Then, pick an investment strategy that fits your budget, time frame and risk tolerance.

Once you've done this, pick the investment(s) you want to make. When buying stocks, research where you are putting your money. Check financial statements -- if they are not provided for free on the internet, get them from your broker or corporate website -- to see how well the company as a whole is doing. If you're still on the fence about what to invest in, think about how much you have to spend and always follow this golden rule: Invest only if it's money that you don't need for at least five years.

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