Kip 25 Mutual Funds (Best 25 Mutual Funds to Own)
If you want to invest in individual stocks, I recommend James Glassman’s column. He mentions several stocks or ETFs to invest in and covers a different investing theme each month.
As always, research each pick before you buy to determine if it’s a good fit for you.
You won’t find the same level of deep analysis as some of the other recommendations on this list, but Kiplinger’s ranks as one of the best financial magazines.
Best known for their magazine, Kiplinger’s offers articles where columnists share investment ideas, and other investment insights.
CNBC is the most watched investing news channel. To save time (and the cost of a cable TV subscription), you can visit their website to read their numerous articles for free.
You’re going to find bullish and bearish sentiment like Seeking Alpha. Consequently, CNBC may be used as a research tool to understand the strengths and weaknesses of potential investments.
As you track your investment portfolio, the CNBC articles can help you quickly see if a stock remains a good investment.
Because CNBC is mostly news articles, make sure you read the bull and bear-side opinions for your potential investments.
Only reading bearish articles can cause you to panic sell. Likewise, only reading positive articles can cause you to buy stocks that might be too risky.
Investment news channel offering in-depth stories. Stay up to date with real time news impacting the markets.
Are Investment Sites Worth It?
Investment sites may make buying individual stocks and sector ETFs simpler. The top sites can highlight some of the best (and worst) potential investments.
Nonetheless, you will still need to perform your own research to decide if their recommendations fit your investment strategy.
For example, investing in a fast-growing tech stock probably isn’t a good idea when you want a blue-chip dividend stock.
If the investment site charges a fee, you must decide if the quality of research is worth the cost. When the answer is “yes,” you must decide if you will buy enough stocks to justify the fee.
The Right Way to Buy Individual Stocks
Many online brokers make it easy to buy stocks without fees. Unfortunately, brokers won’t provide individual advice, so it can be easy to make a risky portfolio. These suggestions may help you as you start investing.
Diversify Your Portfolio
Buying stocks that have the most exciting headlines or investing in brands that you use can make things simple.
However, some brokers and investing sites may recommend a model portfolio of domestic and international stock and bond sectors.
You can use this recommendation to find stocks and funds that fit the recommended sectors and asset allocation.
If you have yet to invest your first dollar, consider investing in index funds and target date retirement funds first.
These funds give you exposure to most publicly traded stocks and instant diversification with low fees. As a result, you can minimize your portfolio risk.
How Much Stock to Buy
When buying stocks, it’s important to pay attention to asset allocation. You don’t want one stock to be too large of a position in your portfolio.
For instance, if a single stock is 50% of your portfolio value and the share price goes to zero, you lose half of your money.
To limit your downside risk, you may consider only having a maximum 5% portfolio allocation for each stock you buy. This means that if you have $10,000 in your brokerage account, each stock position might only be $500.
Other investors might invest as much as 15% of their portfolio in one stock. Make sure you are comfortable with the amount of stock you buy. With each purchase, make sure you maintain a diversified portfolio.
When you invest small amounts of money, you may assign a 1% or 2% allocation per stock. If the stock fails and it’s just a 2% allocation, you will only lose a small amount of cash.
Assigning a small allocation can also be good when you invest in risky stocks with a volatile share price.
Avoid Common Investing Mistakes
It’s not uncommon for new investors to have some blunders when they first get started. Investment sites may help you minimize the number of missteps you make.
Using investment sites to purchase stocks can help you avoid these common mistakes:
Investing in company stock just because you work there
Only buying stock for brands you use
Trading stocks on headlines
Investing in stocks without understanding the company’s business model
Having a single position that’s too large for your risk tolerance
Not performing your own due diligence
Always remember that stock investing isn’t a “get rich quick” scheme.
Do Your Research
You have many options when it comes to investing. You can use robo-advisors, mobile apps, personal retirement accounts such as IRAs, or investment management companies such as Charles Schwab or Fidelity to manage your investments.
Investment sites help educate you on the best trading platforms, exchange-traded funds, cryptocurrency and other investing platforms.
Although there are successful day traders and momentum traders, most successful investors follow the “buy and hold” approach and ignore the periodic share price dips.
This is why it’s so important to get investment advice from a third-party resource. Investing in stocks and ETFs can be easy if you use the proper resources and information to manage your investment accounts.
Site Annual Base Price Rating
Motley Fool Stock Advisor $99 4.5
Stock Rover $79.99 4.0
Investopedia 0 4.0
Zacks $249 3.5
Seeking Alpha $359 4.0
AAII $49 4.0
Barrons $179 3.5
Kiplinger $29.95 4.0
CNBC $299.99 4.0
Professional investors rely on many of the resources mentioned above to research potential investments. You can access the same information without paying hefty advisory fees or subscribing to a $1,000+ investing newsletter.
When you’re ready to start investing in stocks and ETFs as a DIY investor, using these investment sites can help you with your research.