For those that wish to enter the stock market, it's not that difficult. If you are intimidated by unfamiliar stock symbols, stock prices, and investing procedure, here are 10 rules you can follow for investing in the stock market:

1. Research

Know what stocks are. Know what company you are investing in. Follow the stock market - you can download a stock ticker straight to your computer, check stock quotes online, or look up historical stock prices. It's good to do some research of the industry or company that you want to invest your money in.

2. Knowledge

Once you do the research, apply it. Pick companies whose industries are doing well. After you research your company and the stock market, be prepared to pick several companies that you want to put your money on.

3. Follow the market

This means follow the New York Stock Exchange (NYSE), follow the NASDAQ, and even stock markets from other countries. Stock prices can change within a day so its important your up to date on your industry or company that you want to invest in.

4. Stock goes down - Sell

Most people keep stocks that are going down because they think it will eventually go up again. Good idea? Wrong! If a stock goes down and your guy tells you the moneys gone, sell it before you lose more! I will say it again, sell bad stocks before you lose more!

5. Stock goes up - Don't sell
, most people will sell with the idea being that they want to make a profit before the stock price goes back down. No, no, no! Stock prices go up for a reason and if it rises, then ride the wave to obtain maximum profits.

6. Unless you trade keep stocks for the long run

As I mentioned before, buying long term stocks that are well diversified will keep you in the positives. Stock traders make a living trading stock because they are trained. Unless you want to make a living off of price margins dealing with thousands of dollars, stick to buying good valued, long term stock that pay good dividends.

7. Common sense

Always use common sense. If you think you can become a millionaire overnight with the stock market, think again. It takes time, commitment, lots of ups and downs, but in the long run it will be profitable for you if you use your common sense. Pick good stocks and don't take risks.

8. Analysts Recommendations

Follow analyst and their recommendations. If you want to invest in penny stocks, that's another story. But buy stocks that have long term value, and following up on a recommendation is a good place to start. The stock market pays those who wait - i.e. if you bought Coke-a-Cola 50 years ago and kept the stock you would be a millionaire.

9. Be smart - Diversify

Number one rule of portfolio management: diversify. Make sure you don't put all your eggs in one nest. Buy stocks in the financial industry, in the commodities industry, in utilities, gold, etc. Buy stock in Japan, in Germany, the United States, etc. Just make sure your pick of stocks are diversified and the risk is not held in one area.

10. Don't be down if your stock fails

You are bound to lose some money with stocks. Everyone does. But don't let it scare you away because there is so much potential. Average Americans don't invest in the stock market because they fear losing money or don't know how to use it. Take chances, and if you encounter several bumps along the road take them in stride and learn from your mistakes.