Investing in stocks can be a simple process if your know what to look for.
First know where we are in the economic cycle.
This can determine how much of your portfolio you should have invested in stocks and also if you should be buying stocks or selling stocks.
Here are some articles on the economic cycle. When the economy doesn’t look so good, it’s smart to decrease your exposure to the stock market and keep more of your portfolio in cash then normal.
Second learn how to pick great stocks.
Use the Market Flavor portfolio to get help picking stocks!The best way to pick a stock is to find a company positioned to do very well. This can be due to a new product, new business, good management or smart expansion.
Also consider the
P/E ratio of the company. A P/E ratio under 20 is best but the P/E ratios of companies very by industry. That’s why it’s good to examine the
P/E chart of a company.
See more tips on investing in stocks.
