Advice for Picking Stocks

By Richard Kronstadt

At first, picking stocks can feel like a daunting process: With so many options, how can you

be sure that you're picking a winner? Selecting stocks doesn't need to be intimidating if you

just follow a few rules of thumb.

Identify your GoalsWhat are you hoping to achieve by investing: Do you want to supplement your income? Do

you want to save for your retirement or for your children's education? The answer to these

questions will influence the type of stocks you should pursue.

Invest in

What You

Know

Rather than relying

on popularity or

hype alone,

investing in firms

and industries that

you're familiar with

will allow you to

make educated

decisions about the

stocks in your

portfolio, such as

when to hold, when

to sell, and so on.

Keep an Eye on "Best in Breed" CompaniesFocusing on the "best in breed"--stocks with established high-performance track records or

promising prospects--will ensure that you're always placing yourself in the top tier of the stock

market.

Consider Prices

A cheap stock isn't

always a great pick,

and on the other

hand, an expensive

stock isn't necessarily

a bad choice. Take a

look at how a stock's

price has changed

over the course of the

long term before you

make any decisions.

Whittle Down

Your Options

There are myriad

options to help you

keep track of stocks

and provide you with

information about

stocks, like screeners

or ETF trackers. And

don't forget about

financial journalism,

either!

For More Information, visit

RichardKronstadt.org!