I have been trading for a while but focused mostly on short term stuff. Now I want to try holding some stocks for a longer time.
There are so many stocks. How do I start to narrow it down as a beginner?
It feels overwhelming to see all the options.
Keep it to 3 stocks max - any more and you’ll lose track. Use a long-term perspective: only buy if you think the company will thrive over the next decade. Avoid trendy stocks and focus on established businesses that can weather any economy. Always review their cash flow statements; that is crucial for long-term success.
Big brand names saved my ass when I ditched day trading for long-term investing.
Blew $2,400 on random penny stocks my first month. Now I stick with boring giants like Microsoft and Apple - they actually turn a profit consistently.
Look for steady earnings growth over 3-5 years in their reports.
Start with companies you know and trust. Think about the apps you frequently use and the products you buy often.
Also, research their financial health. Look for consistent revenue growth over the years.
Limit your choices to about 5-10 stocks to make tracking easier.
Start with market cap - stick to large-caps over $10B for stability. • P/E under 25 • Debt-to-equity below 0.5 • Dividend yield 2-4% Run these through a screener and pick 3 sectors max.
Focus on sectors you know well first, then check their earnings reports every quarter.