It’s not too late to share with your friends. Send them your personalized link or have them join atbit.ly/2022slaywithstocks

If you missed some of the challenge and would like to review previous days, you can view the previous days –-> here.

This training/challenge is for educational and informational purposes only.  These materials do not constitute a recommendation to engage in any particular securities transactions.

Investment products are: Not FDIC Insured | Not Guaranteed by the bank | May lose value

Week 2: Make it Slay – Stock Trading

This week it’s time for some action as a new investor.  You’ll learn by doing when it comes to purchasing stocks and navigating the stock market to help you build a foundation for investing for years to come.  No need to fear – We got you!

Strategy

It is a way to methodically pursue a goal and reduce risk.  Selecting stocks carry risk, but with no risk there is no reward. Also, there is no foolproof method of selecting stocks that only go up and never go down. 

Day 10 – Stock Selection Strategies

There are several different ways to go about selecting stocks.  The primary reason you want to select some of your own stocks, as opposed to putting all of your money into mutual funds, is because it is through stocks that you will be able to increase your personal wealth, substantially.  However, with limited funds to invest, you will need to identify good companies to invest in.  For example, if you had invested $10,000 in Microsoft in 1986 or Priceline in 1999, you would be a multi-millionaire.  It’s because of companies like these and so many more, that investors are constantly on the look out for the next Amazon or Google.

What to Buy?

There are several strategies you can use to select stocks.  As a new investor, you should buy what you know and your stock selections may fit into one of three categories:

Value stocks – These are stocks that are trading below what they’re worth, with the potential to increase in price.  They are typically high quality companies, because they offer great products/services, but happen to have “cheap” stock prices.  Value stocks are most often found in industries that have recently been hit by hard times such as the auto or banking industry.

Growth stocks – These stocks are opposite of value stocks in that the market values the future potential of a company’s earnings.  The stock prices may reflect that these companies will experience rapid growth due to innovative products or services that have been introduced or will be introduce to the market (Think: self-driving cars).  Growth stocks require analysis combined with judgement, to decide if you are willing to invest in a fast growing company.  Growth stocks can be found in all industries, including Technology and Pharmaceuticals.

Income stocks – These are stocks that provide a steady stream of income.  As an income investor, you will often focus on older, more established companies.  The dividend yield is an important indicator in determining, if a stock is worth adding to your portfolio.  The more consistent and higher the dividend yield, the better.  Although there is still risk involved with income stocks, companies in industries such as Utilities, Energy, and Consumer Staples tend to provide great stock selection opportunities for income investors.

Today’s Investing Activity:  Today’s activity focuses on different types of stocks you can choose from.  By reviewing the cases in the activity, it is important to understand which stocks you will need to select in order to meet your financial objectives.

Using the Stock Selection Worksheet and review each case.  Indicate the type of account that each should open and the types of stocks (Value, Growth, and/or Income) you would select for each case.

You can download the “Stock Selection Worksheet“ to help you with today’s activity. Feel free to take a screen shot of your worksheet and share with the group or leave a comment below.

STEP ONE:

Review each scenario

Determine which type of account will meet their needs

STEP TWO:

Select the type(s) of stock(s) you would recommend for each case

STEP THREE:

Share a screenshot of your worksheet in The Stocks & Stilettos Society or let us know your results in the comments below.

Today’s activity focuses on different types of stocks you can choose from.  By reviewing the cases in the activity, it is important to understand which stocks you will need to select in order to meet your financial objectives.

Tomorrow: Day 11 – Placing Stock Orders

Follow me here:

Instagram: @StocksandStilettos | Facebook: @StocksandStilettos | X: @StocknStiletto

Group: bit.ly/stocksandstilettos

Happy Investing!

Cassandra