How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.

If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)

If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.

Stop worrying and invest with confidence when you read this FREE Special Report, How to invest in stocks: Canada investor advice on building a balanced stock portfolio

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How To Invest Post Archives

How to calculate your capital gains tax

How to calculate your capital gains tax

Do you have to pay capital gains tax for the 2017 tax year? Here’s the general path to figuring that out
When you sell any stock outside of an RRSP or RRIF, you must pay capital gains tax if you’ve made a profit on the sale. Determining your capital gains… Read More

Savvy Stock Pickers Like Investing In Spinoffs

Savvy Stock Pickers Like Investing In Spinoffs

Investing in spinoffs can boost your long-term portfolio returns
When a spinoff begins trading, it stands to reason that investors might well put a low price on it. After all, the spinoff hits the market with a large number of neutral, if not reluctant, stockholders who… Read More

How to Start Investing in Stocks: 7 Key Tips For Beginning Investors

How to Start Investing in Stocks: 7 Key Tips For Beginning Investors

Diversification, investment quality, and a focus on dividends are key when you’re learning how to start investing in stocks
We continue to think investors will profit most—and with the least risk—by buying shares of well-established companies with strong business prospects and strong positions in healthy industries.

Investors… Read More

Tips for picking stocks from the TSX index

Tips for picking stocks from the TSX index

Financial, safety, and survival factors are important to consider while looking for stocks on the TSX index
The TSX is the abbreviated name for the Toronto Stock Exchange. You will often see our stock recommendations on TSI Network accompanied by a TSX symbol. When we’re looking… Read More

Is Buying Stock Options Ever a Good Idea?

Is Buying Stock Options Ever a Good Idea?

Buying stock options is rarely a good idea for investors, but it can be profitable for your broker
From time to time, you may hear favourable opinions on stock options from brokers or the media. Frequently, those opinions stress the relative safety of certain options as… Read More

Penny Stock vs. Regular Stock: What’s the Difference?

Penny Stock vs. Regular Stock: What’s the Difference?

There are big differences in penny stock vs. regular stock investing—mostly centered around risk
Many of the best “regular stocks” are blue chip stocks. Blue chip companies can give investors an additional measure of safety in volatile markets. And the best ones offer an attractive combination… Read More

Is it Too Late to Invest in Canadian Marijuana Stocks?

Is it Too Late to Invest in Canadian Marijuana Stocks?

Canadian marijuana stocks may move higher on momentum—but they need significant revenue growth to justify their huge market caps
Share prices for many Canadian marijuana stocks have soared since mid-2016. The speculative appeal of marijuana stocks continues to attract investors looking for a “ground-floor opportunity.” However,… Read More

Trading vs investing—which strategy has the biggest payoff?

Trading vs investing—which strategy has the biggest payoff?

What will make me the most money—trading vs investing? That’s a question many investors ask. The answers may surprise you.

Long-term wealth-building strategies aren’t built by aiming for outsized returns. They are built over time, and most importantly, by learning how not to repeat the market… Read More

Why We Like Spinoff Investing—and How to Profit from It

Why We Like Spinoff Investing—and How to Profit from It

5 tips from our TSI Takeover Target Rating system for even better results with spinoff investing
We can say without reservation that spinoff investing is the closest thing you can find to a sure thing. It all comes down to the incentives.

Companies do spinoffs when they… Read More

Capital gains in Canada: How to do smart tax-loss selling

Capital gains in Canada: How to do smart tax-loss selling

Use tax-loss selling to offset your taxable capital gains in Canada.
Tax-loss selling (or tax-loss harvesting) occurs when you deliberately sell a security at a loss in order to offset capital gains in Canada.  You can then use these losses to offset your taxable capital gains.

In… Read More

How Do You Invest Your Money For Maximum Gains?

How Do You Invest Your Money For Maximum Gains?

How do you invest your money for the best returns? Here’s a successful strategy that takes a conservative approach to long-term investment decisions.

We’ve been asked many times, “How do you invest your money for maximum growth?”

In our view, your goal as an investor, particularly if… Read More

The real costs of using practice accounts to buy stocks online

The real costs of using practice accounts to buy stocks online

Whether you’re a beginner or an experienced investor, these tips give you fundamentally sound advice and show you how to put it to work in 2018–without any need for practice.

Today’s tip: “Practice accounts that let you buy stocks online without real money may seem to be a convenient way to learn investing… Read More

Renaissance Global Health Care Fund (Formerly Talvest Global Health Care Fund)

RENAISSANCE GLOBAL HEALTH CARE FUND $49.93 (Renaissance Investments, 1500 Robert Bourassa Blvd., Suite 800, Montreal, PQ. H3A 3S6. 1-800-268-8258; Web site: www.renaisanceinvestments.ca. Available from brokers) invests primarily in U.S. companies and global companies with U.S. operations or exposure to U.S. markets or whose securities are traded… Read More