Stock Tips

How to pick a stock

Finding the right stocks is a challenge for even the most expert investors. Just because you find a stock that is projected to go up and everything, there is still not a 100% chance it will. However, there are some things to look out for that can help increase your chances of making money.

Some of these signs include:

  • Checking the news. The news can give you insight on whether a stock’s industry is succeeding or not. If the stock is well known enough, it may even have its own personal news suggesting how the stock is going to perform. You may also be able to get general market updates here that can inform your decisions and timing.

  • The second thing you can do is research the stock online using one of the many available & free websites such as Yahoo or Bloomberg. Not only should you be looking for financial clues about a stock’s future performance and value, but you will also be able to view other investors’ opinions on the stock.

  • Finally, you can look at the stocks charts to see whether there are any noticeable trends in the stocks performance. Optimizing your entry point by determining whether the stock is having a negative (bearish) trend or positive (bullish) trend is an important part of making money.

These signs can help increase your chances of success, but there is no guarantee that your investment will yield a return.

Having a strong portfolio is a key component to being able to have success in the stock market. Making a strong portfolio is not necessarily hard, but there are a few general rules of thumb to keeping a balanced investment profile.

These tips include:

  • Diversifying your stocks - make sure that you don’t put all your money into one stock or one industry, instead spread your money along a few different stocks and industries. Mutual funds and ETFs are an easy way to accomplish this.

  • Keeping some liquidity - It’s our personal recommendation that you keep some spare cash around in order to have financial flexibility and the freedom to pounce on attractive opportunities quickly.

Portfolio Tips

 

Disclaimer: I am not a professional stock advisor. All tips that are given above are not guaranteed to make you money, they are just to help give you basic help on investing in the stock market.