Picking stocks can feel intimidating. There are 11 stock market sectors, 69 distinct industries and thousands of publicly-traded companies across the major U.S. exchanges. For a beginner, it can be hard to know how to choose stocks that are positioned to perform well.
The first thing to understand is that no foolproof algorithm or formula guarantees success. With so many stocks available, there are even more investing philosophies, strategies, and mindsets that people use to approach the market.
For newer investors, and even experienced investors rethinking their approach, it helps to focus on a few key principles. Five important things to know before picking stocks are…
This post originally appeared at U.S. News & World Report.