Best way to start investing with $1000

Buy two shares of AAPL....

I would go with 1-2 stocks. It will get you more involved with investing and following stocks, which is worth way more than whatever money you will make off of 1000 dollars.

I would choose one large cap and one smaller stock.

Start trading options. You can make 100k in less than a month.

buy tobacco stocks

The book selections are good. I would add that if you are just starting out it may not be a bad idea to set aside some small amount (a couple of thousand is fine) and actively trade it. Set aside a similar amount to invest in index funds.

Why? Because you'll eventually convince yourself that beating an index fund consistently isn't at all easy and exposes you to much more fluctuation. It's less expensive to learn this lesson now than when you're retired with a few hundred thousand and nothing better to do. I've seen guys in that position literally bet everything they have (leveraged even!) and have real roller-coaster rides with their life savings. Get this out of your system now while the tuition is cheap.

Before you start, know a couple of things:

1. Investing is long term. It's highly unlikely you'll make much money for a while. Don't get sucked into short selling for a quick dollar.
2. It takes a lot of time to be able to do it right. If you at any time have more money to invest, definitely look into getting someone to help you who can watch this stuff all day.
3. Normally a financial adviser would recommend having a minimum of six months' living expenses in savings before risking any of your money. Since you're starting out with a small amount I assume you're being conservative, but that's what I've always been told.

Good luck!