How do you find the best stocks to invest in now? If you take advice from the wrong people, you could end up burning a hole in your investing portfolio; listen to people who have no sense of long-term investing and you could end up making the biggest investing faux pas ever. The assumption here is that you have no intention of making such a mess of things so this short piece will hopefully help you in your search for the best stocks to invest in now.
Best Stocks to Invest In Now – Why Strategy Is King
A lot of investors go into investing without much method or a crafted, well-structured way of doing things. These are the investors that chase stocks once they’ve been milked. These are the sort of investors that pick the wrong stocks then wonder why the measly 2% return they get seems a bit off. The key to avoiding these pitfalls is to think strategy, all the time.
Having a strategy allows you to invest with purpose and some clarity. A good strategy should by default, allow you to avoid making systematic mistakes in the stocks you pick. It should also give you a clear, structured path to selling the stocks that accumulate profits. Believe it or not, a good deal of investors hold onto stocks that have no sensible justification for being in a portfolio; these investors believe in some faint hope that at some point a long-term bet that has gone sour, will somehow have a miraculous turnaround. Strategy helps you unload the duds quickly, without any sort of emotional discomfort.
Best Stocks to Invest In Now – One Sure-fire Strategy for Picking Great Stocks
Unless you are a super-rich investor, pickling up stocks in companies like Apple and Google might not be the best idea. What the typical investor has to do then, is have a workable way to pick stocks. There are many ways you can do this, but think these two strategies are immediately useful.
The first strategy involves keeping abreast of new technologies and trends. You can do this by industry or by sector; it really doesn’t matter so long as you pick one defined area with a strict set of parameters and stick to them. For example, you could narrow your monitoring to technology stocks that are in the alternative energy space.
Best Stocks to Invest In Now – A Concrete Example
So let’s say you decide to watch companies in the electric vehicles space, you could for instance pick a company that makes batteries for electric vehicles. Such a stock, by virtue of it being a nascent enterprise, wouldn’t be too expensive, and it would give a clear sense of upside. A more concrete example of this strategy would be picking Tesla Inc. (NASDAQ: TSLA) back in 2012 when it traded under $50. A $10,000 investment then at $40, would be worth $78,250 today. That’s the sort of insane growth you can get picking the right technology stock. So long as you take a long hard look and ask the right questions, returns can be quite handsome when it is all done correctly.
Of course monitoring stocks for long-term growth is one part art and one party science. It takes a lot of time and resources. This is why the second strategy for finding the best stocks to invest in now involves leverage. Specifically, it involves leveraging the efforts of other people or organizations that do all the heavy lifting for you. One way to use this kind of leverage is to monitor the stock picks on prominent websites like CNBC, CNN Money. You can even watch the picks as they unfold from specialist financial websites. Having multiple sources fed into your strategy is not a bad idea too; so long as you don’t go too crazy with these big websites because they can inundate you at times with information.
The TSLA example above is a very firm grounding in a decisive strategy for picking the best stocks to invest in now. You can do this for any sector you want. Outside of technology stocks there a solid business models that have strong growth potential – some are even evergreen, like food and clothing. The key is to narrow your focus so you can maximize your chances of hitting winners.
And speaking of winners, this is a good way to close out this piece. We pick long term stocks from time to time and share them with our subscribers. If you want you can check out our email list, sign up and receive alerts. You can sign up here.