Everyone wants to know what stocks to buy now.  However, it is important to realize the balance you should have when selecting stocks.  When analyzing which stocks to buy right now, take a few things into account:

1)      Look from all angles – There are many factors that affect the profitability of a stock.  Don’t be a fool and think that one certain statistic or piece of information about a company guarantees its success.  The success of a stock is determined by a variety of factors.  One of which, is luck.

2)      Determine your risk tolerance – Many people are in a position where they cannot afford huge losses.  Some people don’t mind the risk, and they are willing to risk for huge reward.  Determine your personal risk tolerance before you decide which stocks to buy.  If you can’t afford to be risky, select stocks with low betas.  If you like to risk it for the chance of high rewards, pick stocks with higher betas.

3)      Consider the portfolio as a whole, not just a single stock – A mistake of many beginning investors is to concentrate too heavily on individual stock selections.  It is important to realize that the key to successful investing is to focus on your portfolio as a whole.  So whenever you select a new stock, keep your overall portfolio in mind.

4)      Realize that much of the value of a stock is not in the numbers – While certain technical measures can be great indicators to the health of a company, and it’s growth prospects, they do not necessarily tell the whole story.  Many famous stock investors agree that picking companies to invest in relies heavily on intuition.  Think about products you use, and companies you like to do business with.  Chances are, these are great options for investment.  The greatest tool most people have for stock market investing is their own intuition.

These are some basic guidelines to consider when choosing which stocks to buy now.  Follow these rules and you will be on your way to a having a healthy and profitable portfolio.