As a first-time investor, the choice of stocks available can be quite daunting. So it's important to research companies thoroughly. It's very important to know your market, and a good exercise is to play the market virtually at first. After undertaking some reasearch, pick out some stocks and monitor them over a period of time, working out how much you would have made or lost if you'd really invested. Watch for what happens to make the share price increase or decrease.

Decide what kind of company you want to invest in. Do you have any specialist knowledge of particular companies and how they work? This can give you an added advantage and will make research easier. Check out your chosen company for management structure, future plans and so on.

It's also a good idea to check out the company's Annual Report and accounts. If you look at two years worth of these, you can see if future plans have been followed through, and whether or not these plans were successful. Look for companies with a good track record and consistent performance rather than one that fluctuates regularly.

Be wary of tips, particularly from brokers who have a vested interest in getting you to part with your money.