How To Choose Stocks The Right Way

Have any good stock tips? Should I invest in “X Company”? What do you think about this new drug coming out?

If you ask this question you’re playing the game WRONG. I have received this question time and time again and see this even more when we experience market conditions like we have over the last 2 months. This is not the question we should be asking. Instead of asking what’s a good stock, maybe instead we should ask what is a good investment?

The answer can be so simple, yet so many fail to follow it.

96% of professional stock pickers overwhelmingly fail to beat the market and those who manage to do so rarely ever do it consistently. Average investors rarely get over 2% in their own “trading accounts”. Instead of trying to force the game, let the game come to you. Utilize a portfolio that allocates your capital across multiple industries and dozens of companies. This is called diversification. You’ll have peace of mind and will have less anxiety from seeing one of your favorite companies go up and down in value. Done right, and you will have many others to pick up the slack!

If you still want to play the stock picking game here’s how you do it and minimize risk:

1) Set up your core portfolio first and allocate around 10% of your money towards a “play account”

2) Choose 10-20 stocks with the intent of holding onto them over time.

3) DO NOT DAY TRADE. This is not investing. Instead, buy into your selections slowly over the next 3, 6, or 9 month periods.

With just a little amount of luck and patience, you just might come out on top.

Not sure where to start or need help getting started? Send an email to contact@hardycap.com or set up a call on my calendar.