Finding Your Own Top 10 Stocks to Buy

Finding Your Own Top 10 Stocks to Buy

Posted on 12. Jul, 2010 by in Stocks

If you ask 100 different people what the best stocks to buy are, you will certainly get 100 different answers.  There’s no way one single person can have all the answers.  There’s not one person who has the ability to know exactly which stocks are going to make the next big moves.  It simply can’t be predicted.  So how do you make your own list of hot stocks to buy?  How do you know which ones to choose?

It’s not easy.  It will take a combination of market research, technical indicator analysis and you also have to evaluate how much risk you’re willing to take on.  What kind of budget do you have?  Can your brokerage account handle an investment in high-dollar stocks or would penny stocks make more sense?  As you can see, developing your own top 10 stocks to buy list is a very personal matter.

In the development of your top 10 stocks to buy list, you are going to want to conduct thorough market research.  There are several ways to do this.  You can watch CNBC all day long, seven days a week, or you can purchase a good stock trading software package.

The stock trading software helps you sort through the thousands upon thousands of stocks that are out there to find the ones that are about to make major moves.  This is accomplished primarily through technical analysis.  For example, a stock could be making a new high or a new low.  Or a stock could be making a candlestick pattern that indicates a trend reversal.  Whatever the indicators show, always remember that the indicators only show part of the story.  Before entering any trade, be sure to research the company to see what’s going on that’s making its stock price move.

Another thing to consider when you are putting together your own personal top 10 stocks to buy list is your ability to purchase stocks.  In other words, the size of your trading account.  If your trading account is worth many thousands of dollars, you can probably afford to purchase some of the higher priced stocks.  However, if your brokerage account is missing a few zeros, you may want to consider lower priced stocks such as penny stocks.  Penny stocks, contrary to the name, are not stocks that are valued below $1.  Penny stocks are any stock that is valued at $5 or less.

Before you commit to buy and sell stock, you’ll definitely want to narrow down your stock picks.  Be sure to conduct a thorough market analysis, use technical indicators and definitely consider the size of your trading account.

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