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How to pick stock market winners

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This guide will provide you with the five key things you need to know and do to successfully invest in stocks.
1: 
Do your own research. Don’t let anyone choose your stocks for you. The key to investing is developing your own skills. So always look into any idea in depth by researching. This isn’t hard because the internet is full of information about stocks. ADVFN.com for example has an ocean of facts and figures for you to look at for free. There is no rush; there are always plenty of share bargains to be had.
2: 
Know why you are buying and know why you are selling. Only buy or sell a share if you have a good reason. Fear or greed are not good reasons. If you don’t have good reasons you are guessing and guesses costs money.
3: 
Be diversified. Don’t put all your eggs in one basket. The more shares you have the more smooth your ride will be and the more representative day-to-day your progress will be. A portfolio will protect you from the thrills and spills of the markets which will make life difficult for anyone with all their money in a small number of shares. Aim to build up to a 30 share portfolio over two or three years.
4: 
Know the trend. Long-term investing is where the money is, not short term-ism. As such, you should step back and try and see the big picture. A strong market helps everyone, even the fool, and likewise a bad market hurts even the best. So in the long run you should focus on the next five years, not this week’s blip. Always have the broad view in mind when you invest and make sure you are in a benign long-term trend.
5: 
Use your common sense. Common sense is rare in general and rarer still in the market. Applying common sense thinking to the market will keep you safer than any other technique. Be as sensible with your money in the market as you would be in the grocery store and you will do just fine.
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