In most areas of life we think more choices are better. But with investing that's not the case. Don't get

How To Pick Stocks

How To Pick Stocks: First Limit Your Choices

Stock investing is hard. Make it easier by limiting the choices you have. So that it's simpler for you to make a decision when you invest.

In most areas of life we think more choices are better. But with investing that's not the case.

Don't get "analysis paralysis" when you pick stock investments.

Watch this short video to learn how to improve your investing by limiting your choices. And which lists of choices to use:

Almost all the stocks I use for client accounts come from two lists of stocks. These are the same lists you should use when picking stocks.

The S&P 100 stocks

The S&P 100 list of stocks are the "who's who" of big (mostly) U.S. based companies. This is a good place to start.

They've all proven themselves and are unlikely to have any "fly by night" risk of disappearing.

There are also some decent dividend payers in this list.

All of the S&P 100 stocks are frequently traded and are considered very liquid. That means they are easy to buy or sell at a moment's notice. That is a good thing as a stock investor.

The Nasdaq 100 stocks

The other list I use most is the Nasdaq 100 stocks.

While there is some overlap with the S&P 100, the Nasdaq 100 stocks are considered more growth oriented. That also means they can be more volatile and prone to wild swings.

There are no financial stocks in the Nasdaq, so if that's something you want, look to the S&P 100.

All of the so called FAANG stocks are in both the S&P 100 and the Nasdaq 100: Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google/Alphabet (GOOGL).

Keep it simple

Rather than looking for a random, never-heard-of-before-stock, stock with these two lists and keep it simple.

There are plenty of high returns possible in these stocks. And you don't need to worry so much about one of them disappearing overnight.

What was new to you?

Look through the S&P 100 and the Nasdaq 100. Then tell me one stock that was completely new to you. One that you had never heard of before.

Leave it in the comments below.



About the Author Tommy Sikes

Tommy is the founder of Wealthific. He's passionate about helping middle class Americans master their money and finances. When not helping people build wealth, Tommy can be found playing soccer, traveling and cheering on the Tar Heels. โšฝ๏ธ๐Ÿงณ๐Ÿ๐Ÿ˜€

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