Markets have enjoyed a major boom period in recent years. Although the COVID-19 pandemic meant some stocks took a beating, the markets have still delivered terrific returns for investors. A quarter of the whole stock market is now made up purely of small retail investors.
We can thank many low-cost, no commission trading apps for widening access to investing, including Robinhood and Stake.
However, experts have called for caution. Although it’s great that the average American is thinking about their future, foolish investments will still lead to massive losses. As trading volume soars to a daily average of 14.7 billion in 2021, smart investors need to know how to pick the right stocks.
Thankfully, you don’t need to work on Wall Street to gain access to institutional investment data. Here are some of the top picks available to low-budget investors.
Why 2021 is the Best Time to Invest Your Money
It’s easy to look at the stock market and claim that the bubble is about to burst. After all, despite the pandemic, the Nasdaq index rose by an incredible 42%. But the general mood of the market doesn’t reflect what’s going on everywhere.
Many retail stocks, travel stocks, and defense stocks suffered massive declines throughout 2020, and have yet to recover as the pandemic rages on into 2021.
There are going to be opportunities for investors like never before. With many industries set to rebound, picking the right stocks could net you thousands of dollars.
1. Atom Finance
Atom Finance is a no-cost stock analysis solution aimed at opening up institutional level investment data to retail investors. It’s the affordable alternative to your very own Bloomberg terminal and is vital for beginners who want to start investing.
Most reviews on Atom Finance praise the platform for its customized news feeds, stock alerts, and in-depth company analysis.
One of the most interesting features is the ability to create your own financial models. This can help you forecast future performance, thus giving you the tools to start investing your money intelligently.
2. Benzinga Pro
Anyone who has been in the investing world for a while already knows about Benzinga. This is a brand dedicated to providing financial news. Benzinga Pro is their latest product; a real-time stock trading news feed.
We recommend it as the easiest way to save money on your investments because it not only reports the news it reports the rumors. It’s much faster to get in-depth fundamental analysis via this platform than waiting on Yahoo or MarketWatch to tell you what’s going on.
Regardless of what you invest in, speed is of the essence. If you can make your trades an hour before the competition, you’ve already got a massive advantage in the long term.
To find out more about how to use the platform, check out this Benzinga Pro review.
3. Trade Ideas
Do you want to become more of an active investor?
If you like the idea of studying the markets and maximizing your profitability, Trade Ideas is the next step up in stock screening. It’s an advanced stock scanning tool powered by artificial intelligence. You’ll gain access to the best insights through a combination of tried-and-tested institutional level stock scanning techniques plus the power of artificial intelligence.
It also includes a live chat room, enabling you to discuss tips and tricks with your fellow investors. This sense of community in what can be an extremely lonely profession can be invaluable in helping you to make the right decisions.
Most Trade Ideas analysis praises it for its cutting-edge approach to stock picking but beware that their fees are higher than average.
Top Tips for Choosing Stocks in 2021
Newer investors often want to manage their finances with the least work possible. Knowing what to look for in a stock can drastically cut down on the amount of research time required to uncover those diamonds in the rough.
Here are some tips for choosing stocks in 2021:
- Growing Industries – Stocks from growing industries, such as electronics and online shopping, are more likely to experience major growth in the long term. Other industries, like oil and gas, are set to decline.
- All About Quality – The pandemic has changed nothing when it comes to quality. Look for the companies with low debt and a strong balance sheet.
- Stick to Industry Leaders – Industry leaders are best placed to weather the storm. Although it might be boring, even industry leaders can experience hard and fast growth. See Tesla and Amazon’s 2020s for a perfect example of this.
Overall, investors should be looking to find companies with strong growth potential and a solid base to build from. The three tools described above all operate at different price points, so you’re bound to find the platform that fits you best.