Select three stocks. It is recommended that your three stocks are from different industries to diversify your portfolio as a top-down portfolio management approach. Although this guide uses three stocks, you can apply the methodology explained here for many stocks. When you select the three stocks, think about the style of the stocks, specifically, whether they are growth stocks, value stocks or blend stocks (aka core stocks). From school library, you can use Morningstar and search companies to see their style.