It is popularly believed that investing in the stock market is by far the most effective way to build your portfolio.
However, picking the right stock is quite a daunting task. There are hundreds of stocks on the market for any investor.
Best Stocks To Trade – Top Picks
Investor’s Business Daily has published a list of the best stocks to trade now.
According to the list, these shares have been carefully handpicked by the publication’s stock experts across a range of sectors and have displayed exceptional performances in terms of growth potential and stability.
In this guide, we take a balanced view of these stocks by examining some of the pros and cons of each option.
Also, we will explore some best practices for your trading and why Finxo Capital is the best place to execute your trades.
1. Best Stocks To Trade for Growth: Alphabet Inc. (GOOGL)
Alphabet Inc. (owner of Google) is an excellent pick for growth, according to Investor’s Business Daily.
Over the past 12 months, the stock is up 14%, fueled by solid ad revenues and growth in its cloud computing segment. Alphabet’s trade in artificial intelligence and autonomous vehicles keeps the group well-positioned for future growth.
That said, traders should also note the potential risks to the stock from regulatory intervention as well as competition in the digital advertising space.
2. Microsoft Corporation (MSFT): A Tech Leader With Resilience
Microsoft is still a top-performing tech company and one of the best stocks to trade today. Over the past 12 months, the company’s stock price has climbed nearly 15%, on the strength of its cloud computing and software products, as well as the acquisition of Activision Blizzard (a major player in the gaming industry).
The challenge of keeping up with innovation in this industry is second to none. It’s also the industry most vulnerable to short-term change, with competition that can both invigorate and crush existing players.
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3. Best Stocks To Trade for Stability: Johnson & Johnson (JNJ)
Healthcare conglomerate Johnson & Johnson ranks among the best stocks to trade for safety, according to Investor’s Business Daily. Shares are up 10% over the past year and pay a solid dividend. But risk factors weigh on its outlook, including litigation and regulatory issues that may threaten growth and trading over time.
4. Tesla Inc. (TSLA): A Pioneer in Electric Vehicles
Tesla is the leading company to trade in the electric vehicle (EV) market, where Tesla’s stock has risen by 25% over the past year. The demand in the EV sector is growing rapidly, and Tesla’s latest innovation and global expansion to more locations have solidified its leading position in the EV market. However, the stock is quite volatile, and the EV sector is highly competitive, so there are risks that traders should take into account.
5. Best Stocks To Trade for Income: Procter & Gamble Co. (PG)
Procter & Gamble is a solid stock to trade for income. Over the long term, assume 10% total returns with PGE’s 2.9% dividend yield growing with inflation. The stock has appreciated 8% over the last year but delivered about 11% total returns in the previous two years. PGE’s consumer goods business has been solid for years due to strong sales.
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Over the years, this consumer goods company has shown the ability to maintain trading ability in slow and down economies. The risks with PGE include changing consumer trends and currency fluctuations.
6. Apple Inc. (AAPL): A Consumer Tech Powerhouse
Second on Investor’s Business Daily’s list of top stocks is Apple Inc. – it’s a Brand Leader with huge customer loyalty – and a stock that’s climbed 20% in the past 12 months on the strength of its iPhone and its services segment. Despite its blockbuster status, Apple remains a company with a few critical products and is reliant on a few key markets.
It runs the risk of becoming a victim of its own success, for example, with a smartphone that’s so dominant it lulls consumers into passivity. Apple could also fall victim to regulatory issues in its key markets around the world.
7. Best Stocks To Trade in Healthcare: Pfizer Inc. (PFE)
The third company on the list is Pfizer, another healthcare company, whose stock rose by 18% over the previous year. The high performance of Pfizer on the stock market was due to the success of its vaccine against COVID-19, which is now becoming a bestseller and remains one of the most successful drugs on the market.
As there are still potential developments in the pipeline that will improve the company’s financial performance, Pfizer is set for more significant growth in the future.
On the other hand, its official patents are about to expire, which will lead to competition with generic medicines, thus lowering the company’s position in the market.
8. NVIDIA Corporation (NVDA): Innovating in AI and Gaming
One of the best ways to gain exposure to the most advanced technology is to take a position in NVIDIA, one of the great technology stories of the past decade. The company makes both leading-edge graphics processing units (GPUs) and major advances in artificial intelligence (AI).
NVIDIA shares have surged 30% over the past 12 months, as an explosive combination of gaming and so-called cloud computing, or data centers, bought more GPUs. It might be tempting to conclude that NVIDIA’s recent run is set to continue, but traders should be wary of this particular sector’s volatile nature.
The semiconductor business tends to be cyclical, and stocks in the sector are prone to wild swings.
9. Amazon.com Inc. (AMZN): E-Commerce and Beyond
Amazon is a big name in e-commerce. It is one of the best stocks to trade for traders looking to ride the wave of continuing growth in online shopping. Its stock increased its value by 12% over the past year, as it did well both in peak shopping seasons and as it grew its business in new markets.
Amazon is set to expand into healthcare. The e-commerce behemoth is also eating into other industries.
At the same time, the costs associated with its business – it is a major spender on capital expenditures – are a risk.
There is also the risk that governments will intervene to limit the size of its operations, not to mention recent reports that its business is facilitating child labor.
10. Best Stocks To Trade for Financial Security: Berkshire Hathaway Inc. (BRK.B)
Berkshire Hathaway (BRK.A) Warren Buffett’s Berkshire Hathaway is the financial equivalent of your comfortable old armchair, which is why the share price is currently up a respectable 10% in the past year.
That’s thanks to soaring performance from its insurance and energy businesses, which dominate Berkshire’s portfolio. The conglomerate’s diversified spread of titles polishes this rock-solid group, but there’s a reason it has a cyclical bias: as demand ebbs and flows, Berkshire will follow the economic cycle.
Best Trading Practices and Risks Involved
Here are the main tips to consider when trading stocks: You should know the risks: The value of stocks fluctuates based on a variety of factors.
The most important aspect is the price-earnings ratio, or P/E ratio, which indicates whether a share price is considered reasonably priced, underpriced, or expensive. Another factor is the value of the company itself. If the company is valued more than the market expects it to be, its share price will likely grow. Keep in mind that stock prices can be highly unpredictable, especially in certain sectors and with certain companies.
- Diversification: Spreading your trades across a range of sectors and industries minimizes risk. If a single stock performs badly, it can’t necessarily drag your portfolio down. It can, however, have an impact. Diversification is not a foolproof way of eliminating all risks.
- Buy low and sell high: The price of a stock reflects the hopes people have for the company’s future. While it isn’t the sole determinant of trading success, buying shares for less on average than everyone earns, in the long run, is a surefire way to increase your wealth. To do this, you need to learn about the company, the industry it operates within, and the overall state of the market.
- Risk Control: Placing your order at a specific price with a stop-loss order can help limit loss potential: If you use a stop-loss order on a stock, when it reaches a specific price you have chosen, it sells automatically, thereby limiting the downside risk.
- Managing Your Expectations: The stock market is volatile by nature. Having realistic expectations and understanding that stock prices can fluctuate will help you manage yourself and avoid emotional decision‑making.
- Informed: Market news, economic indicators, and company reports should be monitored. It is important to follow long-term trends rather than short-term movements in the market, lest you make impulsive decisions.
While trading of shares can potentially yield big gains, it is also true that there are associated risks such as market volatility, economic ups and downs as well as company-specific problems. You should have a balanced view towards share trading and anticipate both the gains and risks.
Best Stocks To Trade – Why Trade with Finxo Capital?
Finxo Capital offers the perfect opportunity for trading. With its user-friendly interface and trader-friendly trading tools, Finxo Capital is a perfect platform for investing in the best stocks to trade. With its quick access to a wide range of stocks, Finxo Capital is the perfect destination for top stocks to trade.
The wide range of stocks offered by Finxo Capital is what makes it special for beginners and experts alike to invest. A wide range of stocks ensures quick and easy diversification and risk management.
But once you do decide it’s time to begin trading, Finxo Capital shares the resources and innovation you need to succeed.
These are the best stocks to buy if you’re focused on growth, aiming for income, or seeking stability – you can find something for every type of investor among the stocks highlighted here.
With Finxo Capital, you can make the most of stock trading and manage risk at the same time.
