Choosing Profitable Stocks

Stocks by GuestBlogger | No Comments »

If you’re one of the many that is looking to invest in the stock market, but feel that you don’t know enough to make profits, think again. Knowing how to pick stocks that will bring you the returns you’re looking for is not as hard as you might think.

First you need to look at the different companies out there that you know have a good solid name in their industry. Apple, Anadarko, Proctor & Gamble are leaders in their industry and those are just a few of the ones to start with. With so many different sectors and so many good companies in each one, making a preliminary selection won’t be difficult.

One of the best stock buying tips that I give to friends and clients is not to just buy into the company when you find that it’s a good investment. An investor has to wait until there is a healthy pull-back in the stock price to get into the stock. What I do is I take a small position in the company at first just in case the stock takes a jump up. If the stock price comes down the 8% after I buy into it, I’ll just buy more incrementally. If the stock goes up over 10% in a short amount of time, I’ll sell off shares and wait for the pull back. Many times I’ll miss an extra 5%-8% gain by doing this strategy, but as I always say… there will be another opportunity to make money.

Never chase a stock price no matter how popular the stock is at the time. You will see that many times people will see a lot of action in a stock and feel that they should be in it also. The problem there is by the time they get into the stock, all the smart money is in it and the average investor has missed out on the big gains.

Stock investing is not a difficult thing to do, it just take patience and research. Anyone can do it if they take their time.

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