MarketWatch.com suggests reliable sources of stock purchase recommendations on its website. Its recommended resources avoid data interpretation, which is subject to error, in favor of summarizing or publishing data directly from the banks that produce it. Investors can evaluate these recommended stocks according to accepted quality standards, Forbes states.Continue Reading
Stocks for companies that offer straightforward products and services and have reached the pinnacles of their markets are safer bets than emerging companies with difficult-to-understand business models, Forbes notes.
Stocks with long records of solid performance, especially those for mid- and large-cap companies, are also good bets, according to Forbes. Although small-cap companies often grow quickly, that growth can be risky for companies, CNN notes.
Choosing recommended stocks based on value rather than growth is also a good strategy, as recommended by CNN. Whereas growth stocks can tumble quickly as the companies' growth slows, value stock prices hit temporary valleys due to conditions the companies can reverse, affording investors the opportunity to purchase at low prices.
Diversifying a portfolio by purchasing 15 to 20 stocks in at least seven industries also helps safeguard an individual's investments, CNN Money notes. Investors should compare the price-to-earnings ratio against the expert total return estimates.Learn more about Investing