Top 5 Stocks For Beginners To Buy in 2022by@arazohrabian
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Top 5 Stocks For Beginners To Buy in 2022

by Ara ZohrabianMay 22nd, 2022
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Trading stocks can be a challenge for many beginners. It is important to follow our four tips for stock trading before we discuss which stocks to keep an eye on. Be sure to choose the right broker; always continue educating yourself; learn to control your emotions, and have a trading plan. Once you manage these strategies, consider trading Amazon, Google, Disney, Apple and Netflix. Why? Read to find out!

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Investing is a good way to set aside money that will work for you while you go about your daily business. Basically, the goal of investing is to make your money work in one or more types of investment instruments with the hope of it growing over time. 

Now choosing which stock to invest in is a question every beginner should be asking. So, to make it easier for you, we did some research on the best stocks to buy in 2022.
Here in this article, we will present the top 10 best stocks beginners should be looking to buy now. But before that, let’s share with you 4 tips that stock trading beginners should know about.     

4 Tips for Stock Trading Beginners Should Know About 

Finding the best stock trading website for beginners or best brokers for beginners is quite a task, especially when you are just starting out. 

We suggest making it a habit of following these 4 tips:  

1. Choosing the Right Broker

Before starting to choose an online broker, you will need to answer a few questions about your investing goals, i.e. what are your investment goals. Only after you know what types of investments you are interested in, you can proceed to evaluate brokers by broker reviews based on several factors, including:

Commissions - You should take a look at commissions and what investment options brokers offer. Some of the brokers will offer access to cryptocurrencies, futures, and options trading.

Reliability - You should always choose to work with a reliable broker, i.e. the broker has to be regulated.  So make sure your broker is properly licensed and regulated. The security of your deposit is always a top priority.

Account minimum - For many mutual funds even if you can open a brokerage account with a small amount of money, you may find it difficult to invest it.

Account fees - Most brokers are charging a fee for transferring out investments or cash, or for closing an account.

Tools, education, and features - If you are a beginner in investing, you should look at a brokerage company that offers free educational resources, such as live webinars, detailed how-tos, video tutorials, glossaries, and more. Be sure to find out how well the broker supports their clients by helping them understand the risks associated with such strategies. This could mean guidance from the customer support team on duty, a live chat feature, or clear and detailed instructions on how to use these investment products responsibly.

Promotions - To entice new customers, online brokers run promotions, such as a cash bonus on certain deposit amounts. It isn’t wise to choose a broker solely on its promotions, but if you’re stuck between two options, a promotion may sway you one way or the other.

2. Don’t Skip The Learning Curve 

Never stop learning. Check out online webinars, read educational articles, research new trading strategies, and watch video lessons.  

3. Learn to Control Your Emotions  

Emotional traders find it difficult to adhere to trading rules and strategies. Overly stubborn traders may not get out of losing trades fast enough because they expect the market to turn in their favor. When a trader realizes his mistake, he should leave the market with the least possible loss. Waiting too long can result in a significant loss of capital. After exiting a trade, traders should be patient and re-enter the market when the opportunity arises.

4. Have a Trading Plan 

The main reason you need to develop your own trading plan template is to be able to replicate our good trades. The trading plan should include all the necessary trading rules:

  • Consider the preferred time frame you wish to trade. It comes down to the commitment to work and personal preference. 
  • Do you want to trade in the direction of the trend, i.e. a trend following strategy, or do you want to be a countertrend trader and trade reversal patterns? 
  • It would help to look for an entry signal. You can use price action, support and resistance, indicators, or a combination of those. 
  • Consider your risk management strategy and your position size per trade. We recommend a maximum risk of 1% or 2% of the total account value per trade. When you are just starting out and learning a new trading system, do you trade much lower than this one?

The Best Stocks You Should Consider Buying Right Now

One of the most time-intensive aspects of investing is finding the best stocks to buy that fit your investment strategy. After all, there are a huge number of different stocks to choose from. With so many choices, finding the answer to "what is the best stock to buy” is tough. 

The list below outlines the top stocks to buy this month. 

1. Amazon

Amazon (AMZN) stock is currently trading near 3133.94, but with a share split that will take place in June or so, and the split kicks in, the share price will drop, some predict, around $166. 

Amazon has said the goal is to make its shares more accessible for retail traders. It also gives employees more flexibility in how they manage their equity. 

Share split might be a signal of the company’s intentions for the future. For example, it could expand the shareholder base to reduce other shareholders' influence, which can be beneficial for, as mentioned earlier, retail traders, who buy shares while the price is relatively low.

Overall, Amazon has done well during the pandemic, and the company is one of a handful with over a $1 trillion valuation. That swell already had many investors wondering whether they should buy Amazon stock, so with the company's announcement of a 20-for-1 stock split, the interest picked up.

2. Google

Alphabet’s Google controls nearly 92% of the online search market share. That's a one. Google search is not the only place where Alphabet makes money from advertising. Alphabet controls over 31% of all online advertising by revenue and is the world's largest online advertising network, according to Statista.

Alphabet has had a stellar run over the past year. However, early 2022 declines have brought the stock to a more reasonable valuation, setting the stage for a strong rebound ahead. It's a good time to invest.

3. Disney

The pandemic really hurt Disney's theme parks and movie business but helped their streaming service, Disney+, which has grown into a powerhouse a few years earlier than Disney expected. In 2022, the demand for Disney theme parks and movies will rise again like never before. Disney+ is focused on expanding its platform. In fact, Disney could be the perfect combination of a re-opening game and a booming business fueled by the pandemic. The amazing stability makes it arguably the safest stock on this list. However, it has huge growth potential as it develops new lines of business.

4. Apple

With a market capitalization of over $2.6 trillion, the tech giant is one of the largest companies in the world and is the largest company listed on the Dow Jones Industrial Average. Apple's revenue and earnings growth remain strong, and it is these numbers that underlie the highly favorable opinion of analysts about the stock. Of the 27 analysts covering AAPL stock, 22 recommend it as a buy, four as a hold, and one as a sell, with an average target price of $181.40 per share, representing more than 12% upside potential, according to TipRanks. Despite the recent volatility, the stock is currently trading at a relatively high valuation compared to the industry average. However, similar to the other big tech companies on this list, the high equity-related valuation is offset by strong revenue and earnings growth that many believe will continue for the foreseeable future. 

5. Netflix

There are many competitors in the field, but it's hard to bet against a first mover, especially with a long history of investing in content, technology, and marketing strategies that have paid off. The current slowdown in subscriber numbers is likely nothing more than a bump in the road, though it's worth noting that Netflix may not be able to achieve a sharp increase in subscribers again. Perhaps further declines are ahead.

This is probably why many analysts have abandoned their optimistic views on the stock. However, the average price target is overwhelmingly bullish at $521.04, representing more than 40% upside potential. Netflix is ​​a great investment for the right investor. While there is a risk that the company will not be able to stem the growth in subscribers, if it does, the stock could rise significantly. So if you have a strong appetite for risk and believe in the pioneer of streaming entertainment, it's time to take the plunge.

Whether you are looking to invest in the stock market for the first time or looking to balance your portfolio to take advantage of the hottest trends on Wall Street, the stocks we listed above are worth your consideration.