Clues to Stock Choices

1:  Buy what you know - One of the safest things you can do is concentrate your buying efforts on stocks whose names and products you already know.  Ford, Walmart, Anhueser-Busch are all easily identified examples.

2:  Diversify your holdings - Spread your money around through a variety of different industries.  Don't buy all Transportation companies.  It is too easy for all of your stocks to be negatively impacted by a small change in a single market.

3:  Beware of Technology Stocks - Tech stocks are big money makers if everything goes well, but can cost you everything if you are not lucky.  You should consider some of your money in this area, but don't gamble to much.

4:  Watch the news - Watch the financial reports on TV news broadcasts.  This will provide you with some background information and tips on stocks you might have never considered.

5:  Research, Research, Research - pay close attention to how prices have behaved over the last year and the last quarter.  Beware of stocks whose prices are near a 52 week High, they may peak soon and fall off.