Also agreed with the above. Invest the money u will not touch in the long run (4-10yrs+) in the higher risk stock market. And have money put away in the less riskier no-load mutual fund category. Thats at least what I'ma do.

Also, check out this book: "The Only Investment Guide You Will Ever Need; Andrew Tobias" PACKED with tips and tricks and loads of info for the avid young investor. Since I'm just about to start investing, I cant speak from experience or tell u anything about risk per say.