When it comes to investing $50,000 (which seems to be the average for a beginning investor), the man I look to is one of the nation's premier stock pickers, Louis Navellier. He is the one guy who can translate complicated Wall Street profit jargon into information you can actually use. Today, I'm going to share with you some of his tips for investing $50,000.

Step #1: Follow Your Gut

Before buying stocks, ask yourself this hard question: How much risk can I truly stomach in my portfolio? 

The recent ups and downs of the market have investors being very cautious and rightly so. Stomach-churning lows have been making everyone from Wall Street to Main Street sit up and assess their stock purchases. So first things first here. Before you start buying, think about how much risk you can stomach. Are you comfortable owning aggressive stocks with lots of potential but high volatility? Or, do you like to own more conservative stocks that may not give you explosive returns but are much more stable?  Keep in mind, everyone's risk tolerance is different, and only you can be the judge of how much risk you can stomach in your portfolio. How to effectively weight your portfolio with the right balance of stocks leads you to the next step: the 60/30/10 Solution.

Step #2: The 60/30/10 Solution

To find the right balance of stocks, Louis recommends that you allocate your portfolio using the 60/30/10 Solution. First, start by investing 60% of your portfolio in fairly conservative stocks to ride out market swings. Next, look to allocate 30% in more "moderate" stocks that will add a kick to your portfolio without the added worry of timing the market. Finally, be bullish by investing the remaining 10% in aggressive stocks. If you equally weight all the stocks on Louis's Blue Chip Growth Buy List, you will naturally fall within his recommended 60/30/10 mix. Of course, you can always adjust your portfolios to match your risk profile. You should do what's best for you.

Step #3: Start With 5 Top-Performing Stocks

The last secret is simple. For smart stock picking, start by looking at the 5 Top Performing stocks in each category. You will easily find those lucrative Top 5 stocks on Louis's Buy List.  As an added bonus for subscribing to Louis' Blue Chip Growth service, you'll have unlimited access to PortfolioGrader Pro. PortfolioGrader Pro makes it easy to research stocks and find those Top 5 performers you'll want in your portfolio. Right off the home page, investors can select one of the advanced search options and view top performers by industry sector, fundamentals or most widely held. 

Go ahead and see if your own stocks are making the grade!  There no confusing stats… no hard percentages to calculate… just the simple stock information you need to make smart investment decisions. In fact, each stock is given a Total Stock Grade of A, B, C, D or F so you'll know whether you should buy, sell or hold. It's that easy.

Oh—and here's another great tip from Louis that you will appreciate: If all Top 5 stocks in each category fall into the same industry (which has been known to happen on the Blue Chip Buy List…) diversify among similar industry groups. So, let's say the Top 5 conservative stocks are all utilities, look up the Top 5 stocks in energy. With PortfolioGrader Pro, it's easy to see who rates an "A" or who fails to make the grade with an "F" on Wall Street!

Look for stocks that rate an A and B for taxable accounts and long-term gains. Stay strictly with the A's for any retirement accounts. Shy away from stocks that only rate a C in PortfolioGrader Pro. These stocks are usually classified as "holds" and should only be added to your portfolio once their grade approves. 

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Step #4:  Don't Let Commissions Eat Away at Your Profits

As you invest you $50,000, keep in mind that you should never pay more than 1% commissions when buying and selling stocks.  For instance, if your average commission is $50 per trade, you should only buy 10 stocks; with $25 per trade, you should buy 20 stocks; with $10 per trade, you can buy all the stocks on the Blue Chip Growth Buy List you want. And if you have a Bank of America account, you might have noticed when you use their ATMs that they are offering "free trades" for accounts with at least $25,000. Full-service brokers also offer wrap accounts (i.e., fixed percentage fee accounts) with free trading.

To get Louis Navellier's current Top 5 Stock recommendations, sign up for his Blue Chip Growth Letter here where he and his team of analysts use PortfolioGrader Pro to pick stocks that have beaten the market by nearly $3-to-$1. When you sign up you will get full access to PortfolioGrader Pro! You simple can't beat this offer—especially when it comes with a full, 100% money-back guarantee.Try it out today!