Decide Which
Stocks to Invest In
Choosing stocks can definitely be tricky. The company or product that seemed like a sure thing yesterday can go belly up tomorrow. However, if you have many years before you retire, you can invest your money in long-term ventures. Because you have time to bounce back from dips and fluctuations, the stock market is still one of your best choices. Do not go blindly into deciding where to put your hard-earned money. Learn to make informed decisions you can live with.
Instructions
1. Read everything you can find regarding the stock market and publicly traded organizations. Subscribe to reputable publications such as the Wall Street Journal. Peruse websites devoted to informing readers about the market. Visit TheDividendGuyBlog.com for an extensive list of websites devoted to investing (see Resources).
2. Start listing companies that seem to have potential for longevity and growth. Narrow down your list by choosing companies that you have been a loyal consumer of over the years, or those that offer a product or service that interests you. For instance, if you grew up using a brand of toothpaste and have raised your kids on it, too, the company might be one to consider.
3. Investigate the annual reports of these companies. Cross any companies off your list that have been involved in any questionable practices or do not subscribe to a similar belief system as yours. Most businesses list their mission statements on the "About" section of their website. You can also call the company's 800-number and request a copy of their annual report.
4. Check the stock performances of the companies on your list in recent months. See if you can spot any trends over the last 6 months, including an upward swing or a downward slide. This doesn't mean you should avoid them altogether; simply be aware and pay attention.
5. Seek out professional advice from a trusted, reputable financial advisor. These professionals are trained and experienced. Their job is to help you make the best decisions. Ask people you trust who they use to advise them, or check with your bank's branch.
