If you were to conduct a survey of 50 different people and you asked them what the top best stocks to buy were, you would certainly receive 50 totally different responses. It's a fact that what constitutes a great stock for one person might not be the best choice for another person. Finding more than one person with the same top stock choice is very hard.
So, how then do you create a list of the best stocks to buy? Since there are literally thousands of stocks available, how do you shorten the list to just a few? It can seem like a difficult task. You will first need to analyze the market as a whole to see which sectors are hot right at the moment. Once you have narrowed your search down to a particular sector, you can then proceed with technical analysis on the sector to see which stocks are ready to make a major move. You will also need to consider how much you can afford. Is your trading account big enough to handle blue chips or do you need to focus on penny stocks? As you can see, coming up with a list of best stocks is a personal decision for each individual.
When you begin to put together your list of best stocks, market research is not optional. Perhaps the easiest way to accomplish this is by utilizing stock analysis software. This software will give you the ability to rapidly sort through the thousands of stocks to see which ones are worth pursuing. Taking the time to manually go through all of the stocks that are out there is simply not possible. You can just let the analysis software do the heavy lifting for you. You can set the software to scan for stocks that are trading withing a range or perhaps all stocks that have just broken through a 50 day moving average. From there, you can narrow the results even further by only showing the stocks that are in your price range. It typically only takes a few minutes for the analysis software to do all of this.
When you are working on your list you will definitely need to think about how much you can afford. Most people who trade stocks don't have very large trading accounts. Considering this, you may have to forgo buying the more expensive stocks and instead buy penny stocks of different companies in order to spread your risk around a bit. Putting all of your eggs in one basket is never a good thing anyway. You will need to think about how much risk you can handle.
Clearly, there are many factors to think about when you are putting together your own list of stocks to buy. You will definitely want to consider many different variables before spending money on any of these stocks.
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