help needed

[ALawPoker]

Hey guys,

I'm an online poker player. I send half of my profits every month to savings, and am about to start investing in the stock market, and I could use a little help. I had planned to invest mostly in mutual funds, but upon reading a post on here it sounds like index funds are much better? What exactly is an "index fund?" It sounds like it is an investment in the S&P, or the DJIA, or the NASDAQ, etc.... is that correct? Could someone please explain to me what exactly an index fund is?

I am starting with about 4K in savings, and my plan is to put 1000 in a regular savings account or a CD, 1000 in something fairly risky - like an individual stock or two, and 2000 in funds. Does this sound like a good starting plan? And, are index funds the way to go as opposed to mutual funds?

Any and all help is appreciated, I am trying to learn the ropes here -- thanks in advance.