Bleu Finance - Discover Commodity Investing
Thursday, June 8, 2023
  • Bleu Finance
  • Accountant
  • Credit
  • Finance
  • Insurance
  • Investment
  • Loan
  • Trading
Subscribe
Bleu Finance - Discover Commodity Investing
  • Bleu Finance
  • Accountant
  • Credit
  • Finance
  • Insurance
  • Investment
  • Loan
  • Trading
No Result
View All Result
Bleu Finance - Discover Commodity Investing
No Result
View All Result
Home Finance

How Do First-Time Investors Pick Stocks For Their Financial Portfolio?

by Kasper Lee
2 years ago
in Finance
0
How Do First-Time Investors Pick Stocks For Their Financial Portfolio?
167
SHARES
2.1k
VIEWS
Share on FacebookShare on Twitter

Investment is a great practice that helps to secure your future.

If you are a first-time investor, picking a good financial portfolio can seem like a challenging task. But before we give you tips on selecting the right stocks, it is essential to know that generally, a low P/E ratio is better than a high P/E ratio. It means that it is better to invest in a company with a lot of cash on its balance sheet than those burdened with debt. A pro tip, if you are starting as an investor, your portfolio should be diversified across multiple sectors.

But with so many stocks, things can get confusing. You can ask questions like, “should I invest in amc stock?”

Analyzing the balance sheet of every company is a tedious and impossible task. But then you would need to select the right ones from the thousands of options available.

Wondering how to do that? Then keep reading this article.

Smart stock-picker

If you want to become a smart stock-picker, then keep the following things in mind:

  • You would have to be very determined about what you wish to achieve in your portfolio. And then ensure to stick with it.
  • You should be aware of the daily news, trends, and events that drive the economy and its companies.
  • You should use goals and knowledge to inform the decisions for buying/selling stocks.

Goal determination

As mentioned earlier, the first thing you should focus on is determining the goal of your portfolio. Of course, the primary motive behind investing is generating income, but different individuals have different financial goals. Some want to preserve wealth, while others wish to generate income in their retirement years. Depending on the goals you have in mind, you would have to use different strategies:

  • Wealth preserving investors have a low tolerance to risk, and thus they invest in stable blue-chip corporations.
  • Income-oriented investors are focused on buying stocks that will pay them good dividends regularly.
  • The investors who have capital appreciation in mind would be looking for companies performing great in their early growth years.

Portfolio diversification

An investor can use one or a combination of these strategies to create their perfect portfolio. This is the primary motive behind diversification. Depending on the type of investor you are, you can pick out the top-performing stocks that would fulfill your aims. This would potentially reduce the list of companies you would want to invest in.

Smart tips on picking up the right stocks

  • Always be updated with the market news and opinions. Keep yourself updated by reading the financial news and blogs by experienced writers, as that will work as passive research material for you.
  • Now that you know the basics, it is the right time to take your research a step further. Try to understand the market demand for a given product and the potential of the given company to prosper in the future. However, you should also critically analyze your assumptions and theories. With the right type of qualitative analysis, you will evaluate your choices for continued analysis.
  • The next step is to list down the companies that fit your requirements. There are three simple ways to do that:
  • find the Exchange Traded Funds that track the performance of your preferred industries and lists down the stocks they are interested in
  • screener, which helps to filter out stocks based on some criteria
  • Researching through reading by reading stock analysis articles, financial news releases, etc.
  • Once you are certain about the industry that you wish to invest in, this is the time to turn your attention to corporate presentation. These will contain all the major information that might prove to be helpful for you in the future.

Once you are thoroughly done with all the steps of your research, you will be left with only a few companies that would match up to your expectations. Quality research is important to stop you from making a bad investment move. Knowing when and where to say no is a crucial aspect of stock picking. You should dedicate a good amount of time to researching before you actually start investing in your favorite companies or industries.

Related Posts

Effect of BMI on Term Insurance Plan Premium
Finance

Effect of BMI on Term Insurance Plan Premium

May 24, 2023
Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks
Finance

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

April 26, 2023
  • Trending
  • Comments
  • Latest
Understanding the Difference Between an IRA Transfer and a Rollover

Understanding the Difference Between an IRA Transfer and a Rollover

July 13, 2020
Analysis paralysis in the investment business

Analysis paralysis in the investment business

September 17, 2020
5 Physical Investments to Prepare for a Barter Economy

5 Physical Investments to Prepare for a Barter Economy

January 18, 2022
How to Establish a Strong Pipeline of Investment Opportunities for a Small to Mid-Cap Investment Fund

How to Establish a Strong Pipeline of Investment Opportunities for a Small to Mid-Cap Investment Fund

June 6, 2022
Effect of BMI on Term Insurance Plan Premium

Effect of BMI on Term Insurance Plan Premium

0

HTML News Ticker

0

Why Business Is Grateful For Equipment Leasing and Financing and Asset Finance Solutions!

0

Benefits of Adding News to Your Website

0
Effect of BMI on Term Insurance Plan Premium

Effect of BMI on Term Insurance Plan Premium

May 24, 2023
Indices trading vs stock trading: What’s the difference?

Indices trading vs stock trading: What’s the difference?

May 15, 2023
Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

April 26, 2023
Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

April 29, 2023
Finance

Effect of BMI on Term Insurance Plan Premium

If the insured person passes away, a term insurance plan pays a one-time amount to the beneficiary stated in the ...

May 24, 2023
Trading

Indices trading vs stock trading: What’s the difference?

Indices trading and stock trading are two distinct types of financial investments, each with advantages and disadvantages. This article will ...

May 15, 2023
Finance

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

Cryptocurrency exchanges have become increasingly popular in recent years, providing investors and traders with easy access to a wide range ...

April 26, 2023
Finance

Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

Juggling multiple responsibilities, including bookkeeping, can be a daunting task for business owners. However, thanks to advancements in technology, remote ...

April 29, 2023
Loan

Best Way to Get Instant Loan Approval

A personal loan can be hugely advantageous in times of need or financial difficulty. Numerous lenders offer quick personal loan ...

March 31, 2023

Recent Posts

  • Effect of BMI on Term Insurance Plan Premium May 24, 2023
  • Indices trading vs stock trading: What’s the difference? May 15, 2023
  • Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks April 26, 2023
  • Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping April 8, 2023
  • Best Way to Get Instant Loan Approval March 31, 2023
  • How long can I keep a CFD? March 29, 2023

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • November 2019
  • October 2019
  • May 2019
  • May 2018
  • March 2018
  • US Markets
  • World Stock Market
  • Cryptocurrency
  • Economy

© 2020 Bleu Finance- All Rights Reserved.

No Result
View All Result
  • Bleu Finance
  • Let us help

© 2020 Bleu Finance- All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In