If you can't afford to buy atleast a 1000 shares of a stock, bond, or fund, you are wasting your time and money. Unless you are serious about
day trading and doing tech analysis, it's a losing game. Holding long on securities isn't exactly the most successful way of investing, especially in today's economy.. You'll have to learn about resistance levels, supports, arbitrage, options, futures, derivatives, wedges, shorts, etc. In the end, you (along with most people) will
eventually bleed all your money away. Yes, it is a great time to buy into the market but unless you spread your money around and invest with knowledgeable investors, no single sector is as safe as it's perceived to be and market can always go lower. No one knows where the floor is and anyone claiming to know is full of it. IMO, your best bet is to open a Roth
IRA, Traditional IRA, or put the money into a Money Market Savings account. This way you
will be able to diversify or accrue interest on your money. Don't
waste your time with CDs, since you can't access your money for an
extended period of time and you can find comparable interest rates elsewhere in Money Market Savings Accounts which are also FDIC insured.
On the other hand, if you are going to invest, don't put all your money in the same sector. Diversification is key. Large Cap, Small Cap, Blue Chips, Commodities, Mutual Funds (SMAs), International, Real Estate, etc. ETFs and Index funds are interesting as well but they are aren't designed to beat the market but rather match the markets return, so they are more of a passive type of investing.
I graduated from college with a degree in Finance and I am currently
working for a Fortune 500 company in the Corporate Finance and Revenue
Management department so I have a solid foundation and grasp of the
stock market and other financial systems.
If you have any other questions, let me know.