Aman: It all depends on how much money you have and what type of risk are you willing to take. If you have less than $10,000 to invest, then go with QQQQ, IWM, SPY or DIA. These are exchange traded products, more like a mutual fund that trades throughout the day. Usually there is less volatility with these. If you want to do individual stocks, those are a bit more risky. They can go up or down a lot. Here is how I came up with the stocks. I looked for stocks that have been down recently but still managed to stay above their 50 day moving average. Then I looked for stocks with a price gain and an increase in volume. The other way to do is to look at the sector that is showing strength and buy the strongest stocks in the sector. So if you want to buy financial stocks then go with GS. Please read Secrets of Profiting in Bull and Bear Markets by Stan W. That will help.