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By Garrett Bryce

Despite their recent dive, you get an email in the morning alerting you to a rebounding tech stock. But you’re already late for class and the advice: "Hot stock tip, you can’t pass this up!" ends up haunting you though the day. Should you buy into the hype or let it go? Getting into good investments can make you some hefty cash, but going in on stock hype can herd you right into a scam and leave you busted.

Just like the gossip around school, you have to be a bit skeptical with stock tips. "Not all information is created equal," says John Nester, spokesman for the Office of Investor Education and Assistance at the Securities and Exchange Commission. Considering who’s giving the gossip is important in filtering stock tips. Tips through the Internet can be like getting rumors from that guy at school who claims to know every famous person you mention. Verifying sources through the Internet is tough, too, so who knows who really sent that deal of the century lead. "There’s no button on your keyboard that separates the good from the bad," says John.

Picking good investments takes some studying. So when going for buying into a company, it’s time to hit the books, and do some brain-pickin’ too. "Research is the key," says Mitch Slater, vice president financial consultant with Merrill Lynch, "it is important that before you do anything you research what you are going to invest in." Mitch gave YB some valuable suggestions for making some safe stock picks.

Go is straight to the company, do not pass Go, and maybe you’ll collect more cash. Hit their Website, call them, and dig up all you can on them. Just keep in mind that the company’s going to be talking themselves up, so you might get more good than bad. Still, knowing about the company is a mega-important piece of stock knowledge.

"You need to know what a company makes, who its competitors are, what its prospects are," says John, "if you can’t say what a company does off the top of your head, you’re probably over your head in investing in it." Remember, you’re buying a piece of a company when you buy stock, so make sure you’re happy with what your cash is going into.

Next, check with the financial analyst firms, or brokerages. These are companies like Merrill Lynch and Charles Schwab that provide accounts for investing money. They also provide information on stocks and the markets, so they’re a good source for finding out about investments. Getting to talk with someone in the industry is a good way to learn the ropes. A mentor is a great asset to a young investor, according to Mitch. "I have clients’ kids that call me on the phone and discuss different investments," says Mitch.

Another place to check is the TV. Financial news channels are all over these days. Check them out for some more up-to-date info on investing. Magazines are good as well, but the information can be a bit dated, so keep an eye out for current events.

Taking your time with investing is probably the best way to keep from getting stung. Making big bucks quick happens sometimes in the market, but going for the fast return can suck the cash right out of your pockets. "It’s not about gambling," Mitch says on investing, "the real way people make money in investing is long-term investment."

"The greatest thing young investors have on their side is time," says John. He added that time is a great protection against risk, and gives the advantage of gaining long-term benefits. One of the simplest ways to do this is through Direct purchase Stock Programs, or DSPs. Sites like ShareBuilder allow you to buy stock in dollar increments right from the companies, then let it build over time. To do this, you need to research the companies and make sure you’re choosing stable, steady companies.

Being a safe investor isn’t going to get you millions overnight, but if you play it right and make some smart moves, you can build up a great portfolio for the future. And you’re less likely to end up a victim of stock scamming.