How to Pick Your First 5 Stocks

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Buying stocks for the first time can be overwhelming. But the sooner you get comfortable with the idea, the easier it’ll be to build a portfolio that serves you well for the long haul. Here’s a quick guide to choosing your first five companies to invest in.

The stocks you buy should align with an overall strategy you set for yourself. Your strategy might be based on:

Of course, you don’t need to choose growth potential over current value — you can assemble a portfolio that’s a mix of both. Furthermore, your risk tolerance should play a role in the stocks you buy. Some growth stocks can be volatile, and if you buy companies whose share prices are already high, there’s a chance they could drop.

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