how to pick good stocks

So how to pick good stocks for invest ment point of view? So always go for fundamentally strong companies, which you know since long, their business model should be good. Managemnt should be professional. And sector hould be doing well, reasonably valued should not have high PE ratio( its mntioned in the newspapers too,so chek it) 5-8 PE is good to invest, and it is more than 40 odd then stay away of the scrip and wait till correction.
When markets starts going up then you should enter, first decide which stocks you want to buy, write down on paper at which rate you want it. Check high and lows of the year, always try to buy 25% lower level of the 52week high. One must always carry 20% cash in his portfolio so when markets cracks o0r has correction you can buy your faviourite stocks or even averagfe your earlier scrips too.
Always try to invest in leaders of the sector, say in technology Infosys is the leader, so always try to buy infosys, no matter it is bit costly but it will give you very good and firm returns...so if you have Rs.5000/- to invest buy 2 infy instead of buying any low rate mid cap or small cap stocks cos it will not give you firm and good return in long term.
So first decide how much money you want to put in stocks, then make a paper work then go for leaders and your price, when it comes to that level, put your money, it should always be considered that markets may go dwon and the price at which you have bought the stock too might fall, but always think of longer prospective and then you will find that it gives you atleast 25-30% returns on your investment. So never scare or worry if your scrip goes down once the correction is over it too will move up....and if you the front line stocks then they move fast and first.
so where can you invest now when sensex is @12706 and nifty@ 3697..
so you can put your money in
BHARTI........around 720-740
INFOSYS.......2050
BHEL..........1950-2000
SAIL..........102-104
L&T...........1450-1550
ABB...........3250-3300
SIEMEN........1000-1050
M&M............720-730

dicloser: infosys,sail,siemens