Finding the Best Stocks to Buy

I'm sorry folks, but as much as the financial media likes to claim that they were the heralds of the precipitous drop we've seen in the stock market in 2008, and the rise up again in 2009, all of their news is old news. Any headline that hits the paper is not going to shock or surprise any trader or major player on Wall Street. All of that information they knew yesterday or even last month.

No, the media isn't going to give you good advice. My advice to you: Kick off Cramer, shut down CNBC. Get some good books that explain how the stock market works, and how this boom and bust cycle that we're seeing is normal. Its happened before, it will happen again. Unfortunately, since it hasn't happened in 20 years, the large majority of investors were not ready for it. If this includes you, get over it. There's plenty of money to be made in this stock market, but only for rational investors.

Each boom/bust cycle gives the investor an opportunity to run the gamut of human emotions. First, there is distrust of the rising market. Then hope that the market may go up as it appears to be doing. At the top of the market you'll find euphoria and exhileration (remember the late 90's?). After the market peaks, you'll get denial as the market starts to go down, fear as it continues to go down, and finally disgust and disillusionment as the market finally bottoms.

The problem with this scenario is that when we feel the best about finding stocks to buy, its generally already at the peak of the market. When we finally get around to selling those stocks, we're so disgusted at the market we swear to never invest in it again. This scenario is usually when a market bottom occurs.

To seriously invest well, many people have to make it their full time job. The reason being, is that there already are many people out there making their living just off of trading the markets. Do you think you can compete in finding the best stocks to buy with your two hours a week and the advice of Chuck Schwab versus these serious professionals who spend 60 hours a week or more with the best resources? Get real.

Instead, what rational people do in your situation is to find a good stock picking service that has a proven track record and stick with it. You end up paying a pro for their advice, but you gain the peace of mind knowing that someone with the skills is going to give you the advice you need when you need it. If you really need to make more than the 2% APR you're currently getting sitting in CD's or a money market account, than I highly recommend you take this step.

I found a great resource created by stock traders to help share their experience and tools that helped them to make money in the stock markets. Check out their website below. I used one of their stock trading software picks and it helped me earn twice as much in the last year than I ever did picking stocks on my own - even in up markets!