My only advice to you is to do your own research. That begins with choosing a broker. Here's a good place to start http://www.fool.com/index.htm. Click on the link that says "choose a broker" and go from there.
P.S. they lost $200,000. But they did it very cheaply.
Your safest investment right now: short-term Treasuries. Put at least half of your investment there, or whatever amount you are not prepared to put at risk. If you buy a three year treasury note, be prepared to keep it until it matures and can be redeemed for its face value. Why? Because interest rates are very low right now, which means that they are far more likely to rise than fall in the medium to long term. When interest rates rise, the market value of bonds falls. However, a bond can always be redeemed for its face value when it matures. Therefore, any funds you may need to access at a moment's notice should instead be put in a money market account.
The best performing asset class recently: gold mining shares, or mutual funds that invest in gold-mining companies (this is a high-risk investment, however). With the exception of gold and energy-related investements, I strongly recommend against investing in stocks at this time.
Do not sell short or buy options unless and until you fully understand such investments, the associated high risks, and know how much capital you can afford to lose if the markets go against you.
My advice: Don't do it. Dabbling = gambling. If you want to invest your money, pick a few good mututal funds, invest and forget.
My brokerage License (Series 7) and Investment Advisor License (Series 66) just expired, Hooray! So call this a confession of a former stockbroker if you want.
First don't dabble, maybe with some mad money for fun, only one stock.
2nd, Pay for the professional advice period. I do, and I was in the business, you can't think straight about your own money.
The type of advice is critical (more on this later), but first the brokerage firms.
The most moral firm on the street bar none is C. Schawb. I came sooo close to working for them, they couldn't extend the offer the market tanked! There paridygm is completely different from the rest of the industry, NO COMMISSION SALES PEOPLE I have done a great deal of research on these folks, they are quite impressive. Although you may want to watch the "Fee-Based" Advisors they recommend, there relationship with Schwab may not be conflict free. The bad news they have only about 3000 mutual funds available through there Schwab One Source system vs. Fidelity's 4500.
Now on to Fidelity. They are 2nd behind Schawb, but they are the radical inventor on the street. They invent products such as the "529" plans. I got the inside story on these plans and from what I here Fidelity invented it after they found it could be done via the tax code. They have 4500 Mutual Funds available through there various "Select" Accounts. I would shy away from them for advice, it is not there forte' but you may consider them for your broker/dealer.
Now were to get advice, The least known advisors and as far as I am concerned the ones with the highest morals and ethics in this area are the "Fee-Only" Advisors. THIS IS WERE TO GO. I worked in a support capacity to an advisor in this arena until I became "Mr. Mom" a few months ago. Now the "Fee-Only" logo can only be used by members of NAPFA (it is trade-marked), The National Association of Professional Financial Advisors. They have to be CFP's and they receive no (Zero Zip Nada) commissions or compensation from any insurance or brokerage firm for any of the advice they give. They typically recommend no-load instruments, (they usually use Schwab for the Broker/Dealer) and many also due your taxes, tax planning, insurance reviews, assist in simple wills, and some small business coaching/planning, depending on the advisor. They can be found at: www.napfa.org
Also check out Cambridge Advisors, at www.cambridgeadvisors.com . These folks are the leaders in the fee-only area. of the top 100 Financial Planners in Kiplingers in 2001, 5 were Cambridge Advisors, pretty darn good considering there are only 100 Cambridge Advisors in the USA (total).
I almost dropped out of the business and I did a great deal of soul searching and I came to the conclusion that the "Fee-Only" Advisors are the only way to go, and they may be 20 years ahead of there time. I truly believe everyone on the street is going to have to go this way or fade away, the public isn't gonna stand for the shananigans anymore. I fell this way to the point that I am finishing up my education as well as being a full time dad and plan to get my CFP and return to this arena.
These folks always do what is in your best interest, The good I have seen them do for there clients is amazing, especially after your divorce, truly consider them, I know, because I have been there and help make the good things happen.
Go to a library, get a copy of Terry Savage's investment guide, also a copy of Jane Bryant Quinn's guide. And start reading. Oh, and in the meantime, put your money in something like cds for now, or Vanguard's prime money market fund, very low fees at Vanguard.
And if at all possible, start listening to Bob Brinker on the radio on Sat and Sun. His website probably will tell you if you can get him in your area, otherwise you can read a summary of his broadcasts after the Sun show is over.
His whole point is to get people to learn to manage their own money, so you have to do some research and learn about this.
Whatever you do, don't just turn your funds over to someone to manage, you'll get it most likely with high fees and maybe even churning as your investments are turned over to provide $$ for the one managing them.
I learned so much from Brinker, and also from Humberto Cruz whose archives you can find on the web. I'm very grateful to those 2 who helped educate me, so that I learned a lot about money before I had any to lose.
Think about it.