Resolve this New Year to trade smarter, to pick better, to stay in it for the long haul. And resolve, as the New Year rolls around, to make investments that, unlike the volatile market, will remains strong in an unpredictable world economy. If you’re not sure what you’re getting into moving toward January 2010, take heart—plenty of investors are in the same boat! However, there are near certainties in the market, as touch and go as it may seem, that you can bank on. Don’t break your resolution early due to a lack of preparation! Here’s a list of our tips and picks for 2010.
TIP 1—RESEARCH! Oftentimes, individuals who are new to trading will make picks on the basis of what the guy on TV says, a friend’s recommendation, or a prominent website’s position. The fact is, market veterans do the same. Don’t fall into the trap. Research your picks for 2010, and learn about the investment history of companies that you’re on the fence about.
TIP 2—TREND TRACKING. The stocks simply do not change overnight. A series of highs and lows, investment decisions, company history, and unexpected news can make or break a company poised for success. Look closely at where market confidence lies over a period of time, and choose wisely on the basis of trends you’ve followed for a time.
TIP 3—GET ORGANIZED. If your investments are not laid out in a way that you understand, and if they’re not easy to manage, you stand to lose money in the New Year. Use a tax manager to ensure that you’re not making costly mistakes, keep your trades in a spreadsheet, and make sure that you update your positions daily or weekly. Don’t let a lack of organization cause you to make poor decisions.
PICK 1—GENERAL ELECTRIC (GE). GE is a safe bet for any person looking toward the long term. While it had a substantial downturn in March (like most stocks), it has remained steady over the last few months of 2009 and is poised for growth.
PICK 2—GOOGLE (GOOG). Google is another market standard that, after severe losses following the downturn, will pick up as it introduces more technology, courts a worldwide user base, and innovates the way the web is viewed. Don’t expect Google to go away any time soon.
PICK 3—BEST BUY (BBY). Who says technology isn’t going anywhere? The past half decade has separated the wheat from the chaff where tech retailers are concerned, and Best Buy has proven its dominance on the consumer end.
PICK 4—NUANCE COMMUNICATIONS (NUAN). In 2010, Nuance will be hot. This communications company has a stake in voice recognition tech which, believe it or not, will become more important over the next couple of years. A great long-term choice.
PICK 5—FLIR SYSTEMS (FLIR). Flir is coming back up! After a dramatic downturn, this company involved in infrared technology and thermal imaging looks to make 2010 a banner year. Rising orders make Flir a decent gamble for the New Year.
