We’ve covered a lot in this course so far, from investing styles, to dividends, to market myths, risks, and crashes.
Now it’s time to pull everything together and go find some stocks to buy!
This lesson is going to walk through a general framework for stock research. We provide you with a five step strategy for finding the best stocks and building a portfolio.
Included is a free handout “cheat sheet” to remind you of the stock research process (see below).
After we walk through a general framework for finding the best stocks in this lesson, we’ll dive into the specific winning formulas for finding the best small cap, large cap, blue chip, value, growth, and dividend stocks in the next six lessons.
We’ll also cover advanced strategies for how to profit during bear markets and recessions.
Now, let’s dig into how to find the best stocks.
5 Steps to Find the Best Stocks
There are nearly 9,000 stocks traded in the U.S. market – how are you supposed to narrow it down to a portfolio you can trade and profit from?
As we discussed in Lesson 16: How Many Stocks Should You Own?, most investors own between 10-30 stocks in their portfolio.
Less than 10 is too concentrated and risky, whereas more than 30 becomes a lot to manage.
So how are you supposed to pluck 10-30 sparkling gems from an ocean of 9,000 candidates?!
We suggest you use our five step process, which goes like this: