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How to choose which stocks to buy/short.

So you’ve got yourself a share trading account. How to choose which stocks to buy/short. This is the eternal question as if you chose all winning stocks you’d be making a lot of money – perhaps quickly. So how do we work out when and what to buy?

I thought I’d share some of my personal views.

  • I don’t like copy trading. This is not really your own portfolio. You’re copying another trader, they may lose or win so I’m nervous about copying them. I would prefer to have my portfolio that I can monitor.
  • I like to have long term stock buys/sells and some short terms which I am holding only for a week or two.
  • I monitor my stocks every day and research them. If I see a sudden rally I move the stops to trap the profit. It’s easy to have a browser open with the stocks on my system and flip to it every now and then.
  • I like to invest in things I know about and like. So I love computers so any Information Technology stocks are of interest, I also like stocks like Netflix/Amazon that I’m holding for the longer term.
  • I like ethical trades I’m particularly interested in social powered trading. So I’m watching Reddit’s @wallstreetbets channel like a hawk. I’m holding $GME and it’s rising nicely although I bought it at $90 and it is at $65. It was much lower and is now recovering after its big move. I have generally found that a fast rally followed by a fast fall over a day or two is normally an indication of a slower rally to the original high.
  • I do not put more money into one device over another. So I am gradually building up my portfolio. I have started from pretty much zero with nothing to put in.

stocksMaking Stocks, Shares, and Forex a priority.

I was talking to a friend of mine the other day about some of the stocks I had, he told me how he could not afford not to invest. Which to be honest was my attitude. But I’ve come to the point where I realized that I can not afford *NOT* to invest. That cutting back on small luxuries to fund my trading accounts is well worth it. Since you can invest a minimum £50 in each stock, building a large portfolio over time even for someone on a low income is possible, then re-investing profits. (I use eToro which is ideal for the smaller investor).

I’m excited for the next trading week to see what happens and perhaps make some new investments.

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