Blue chip stocks will definitely be of interest to you if you look, first of all, for reliable long-term investments, for example, in order to build a securities portfolio ‘for retirement’.
However, a shortcoming of this is that the following questions will arise, when you plan to buy stocks:
- Is the XYZ stock a blue chip or not?
- What stocks do I need to have in my portfolio?
- How to take dividends into account?
- How to diversify them by sectors and do I need to do it?
- How to rebalance my portfolio and do I need to do it?
If you want to invest in blue chips with ‘no questions asked’, you can consider investing in respective Exchange Traded Funds (ETF), for example, SPY, rather than buying individual stocks. This instrument, namely SPDR S&P 500 ETF Trust, tracks movements of S&P 500 index, which lists stocks of companies that could be called Blue Chips with different levels of confidence.
Another variant is to download the ATAS platform free of charge. It allows composing a blue chip stock watch list, while its powerful indicators and cluster charts, based on the tick data from US and European stock exchanges, will help you to find profitable entry points. This variant has a lot of pros, especially if you want to trade stocks more actively than just ‘bought and forgot’.
The example below shows it.