How to Find Quality Stocks to Buy
You can find quality stocks using this easy step-by-step guide. Stock investing was once complex, but with a little bit of engagement and some patience, beginners can find great investment opportunities. The key is knowing what investments are right for you.
Choose Your Strategy
Income investing focuses on earning regular income on your investments. When you invest in income strategies, you trade-off asset growth. This strategy earns income using stock dividends or bond interest.
Buy the index
Stock indices use standards to group stocks together. The S&P 500 and the Dow Jones Industrial Average are two of the most well known indices. Investors have been using these indices for a long time, with the Dow Jones Industrial Average first published in 1896. Having a large market capitalization is one key criteria for both indices.
You can buy a basket of stocks representing an index using ETFs. The SPDR S&P 500 Trust ETF (SPY) is a popular ETF for purchasing a basket of stocks in the S&P 500 index.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) can be used to buy a basket of stocks representing the Dow Jones Industrial average.
Buying index ETFs is a great way to start investing if you're a new investor.
Focus on investing for the long-term
For new investors, it's best to buy for the long-term. Try to invest with a 2 to 5 year time frame. When you buy a stock or ETF, its best to "set it and forget it". Other strategies like day trading and swing trading can be lucrative. However, these strategies take intensive time to setup and execute.
Dollar-cost averaging is when you buy company shares at the same amounts periodically. For example, you could buy Ford stock every month. This strategy takes advantage of short term falls in a stock's price. The strategy allocates more money to "cheaper" stocks and less to "expensive" stocks in your portfolio.
Find Investment Ideas
Articles are a great resource to understand the capabilities of a company and determine if they are a great investment. Below are some great articles for you to get started:
Investment Clubs and Groups
Investment groups are a great resource to share and receive investment ideas. There are many ways to get involved with Investment Clubs and groups.
- Better Investing is a non-profit organization that is a resource for investment clubs. They help clubs organize and research investment ideas. Their signature research tool is the stock selection guide (SSG). Better investing is a great resource for new investors to get involved in a local chapter near them.
- ClimbUsa helps students learn about investing.
- Join an online investment group. StockBossUp has many active groups you can join to get investment ideas.
Generate 10 Stock Picks from Crowd Sourced Ideas
You can be a successful investor, all you need is knowledge. Taking time to understand stocks you invest in will help you grow your wealth. But where to begin? First, use the StockBossUp draft system to receive 10 stock picks from our network today. To get these stocks picks:
- Join StockBossUp.com
- Select "help me build a portfolio"
- Follow the step-by-step instructions to build your investor network
- Draft investors to help you build your portfolio
Once you've built a draft team on StockBossUp, you'll receive 10 stock picks from the team you built. Use this as your starting point to build your research.
Markets go up and down which will play with your emotions. We recommend not buying or selling stocks off of these emotions. But we do recommend taking your emotions out on your StockBossUp draft team!
Bench poor performing investors and draft better investors. Nudge bad investors so they do better, and tip good investors with BossCoin which helps them broaden their audience.
Do Your Own Research
Read our guide on assessing stocks. This guide walks through how to analyze a stock with simple examples.
Finding stocks is just the beginning! Once you've discovered a list of great stocks, be sure to do your own assessment of the investment.
Part of a Series for Beginner Investors