Stocks and shares to buy

There are a Plethroa of stocks and shares to buy on the Local Australian Stock Exchange ( ASX ), but Most Investors and Traders have limited knowlegde of how to pick a good solid growth company,  and more often then not, they are caught up buying shares on a whim, via Share Tips From Friends or From Financil Media such as newspapers or Magazines with little to no knowledge of the balance sheet or business activities of the company etc.

Now, the reality is  that all walks of life participate in the stock market, which means all kinds of emotions and end goals are present in financial market participants on a day to day basis. Smart individuals use this to their advantage, using market crashes as a time to lap up cheap stock, and using euphoric bull markets to sell out of positions for a profit.  In hindsight this is easy, but real time, this is extremely hard to achieve. Your task as investor is to become good at buying when their is blood on the street when everyone is panicking , and selling when there is glitters in everyones eyes at the peaks of bull market runs.

The most sound and trusted method to buy stocks and shares would b eto  initially diversify their portfolio into the top 50 stocks, this strategy has outperformed the broader market for many years.  This will keep you investing and trading in companies which have a solid business , good brand and large market capitalisation. Trying to pick just 1 stock and betting all your dollars on it will usually lead to poor returns. Its a known fact that picking individual stocks is a hard task, so its best to find a handfull of companies from the top ASX top 50 Index and start buying into these companies in planned installments over the long term.  This will not only improve your average entry price, it will lesson your initial capital outlay.

For the early stages of you investing career, try to stick to the well  known, liquid and well traded companies, this will avoid heartache and allow you to experience the emotions, fear and greed without losing your shirt, and hey, you may even make money, if you can tolerate the highs and lows of this beast we call the share market.