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Determining what stocks to buy relies solely and completely on what you are trying to achieve with your stock purchase. An example would be if you were looking for a quick bang for your buck, and are willing to take on an extremely high level of risk, the penny stocks may be an option. If you are looking for the most conservative investment and would like to receive some sort of dividend payment, then one of the Dow Jones Thirty may be the answer. There is no simple solution to any investment, but you must learn and understand exactly what it is you are trying to accomplish with your stock portfolio.
Diversification is one of the keys behind understanding what stocks to buy in any market
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