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How to Find the Best Stocks to Invest In

Whether you’re new to investing or you’ve been in the game for a while, it’s normal to spend hours agonizing…

By editor , in The Public Markets , at August 8, 2018

Whether you’re new to investing or you’ve been in the game for a while, it’s normal to spend hours agonizing over what “the right stock” is. Here are a few simple tips to help you find the best stocks to invest in.

  1. Check out a trading screener

Trading screeners are great for filtering out the garbage. Finviz works a bit like a hotel search site; set your filters according to your preferences and then get results that you can change the order of, depending if you’re interested in performance over time or something else. If you want to get a bit more technical with your analysis and identification of possible bull trends, check out StockRover. You can set up a bunch of mathematical parameters and equations, although as with all screeners, live data and advanced calculation features are only available with a paid subscription.

  1. Look for growth

Check out the top and bottom lines for companies you’re thinking of investing in but look at it over a period of time. You’re looking for an increased distance between revenue and cost as a sign that a company is being well-run financially and is in good health.

  1. Have a go at fundamental analysis

If you want to dig a little deeper into the data, then read up on fundamental analysis. It’s not as difficult as you may think and relies entirely on public data, which means that you can do it from home. It’ll also teach you the concept of going short or long on different investments, depending on your predictions.

  1. Try a mutual fund

If you’re nervous about finding the best stocks to invest in yourself, then a mutual fund might be worth a try. Obviously, the disadvantage of getting someone to invest your money for you is that it’ll cost you, but the advantage is that you’ll get a diversified portfolio without putting in a ton of effort. And at the end of the day, diversity is key in the world of investing; you don’t want to be left completely bankrupt because you only invested in one stock and it crashed!