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

Read More

How To Invest Post Archives

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 index symbol. When we’re… Read More

Should You Sell Stocks Now or Hold Them for a Longer Term?

Should You Sell Stocks Now or Hold Them for a Longer Term?

Whether an investor should sell stocks now or hold onto them is an important question to explore, especially because selling a stock too soon can greatly diminish returns—while in some cases, holding too long can lead to a loss of your investment
When you are learning… Read More

TD Science & Technology Fund $14.89

TD Science & Technology Fund $14.89

TD SCIENCE & TECHNOLOGY FUND $14.89 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W1P9. 1-800-461-38 63; Web site: www.tdcanadatrust.com. No load — deal directly with the company) invests mostly in U.S. firms engaged in the research, development, production or… 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

10 keys to finding undervalued stock picks

10 keys to finding undervalued stock picks

Here’s how to find undervalued stock picks — and maximize your long-term profits.
One of the key principles of successful investing is to buy high-quality “value stocks”: They’re stock picks that are reasonably priced, if not cheap, in relation to their sales, earnings and assets. Typically,… Read More

How to Begin Investing the Right Way for More Reliable Results

How to Begin Investing the Right Way for More Reliable Results

Some investors recognize that their investing strategy is failing and want to learn how to begin investing differently. We recommend that these investors diversify, look beyond financial factors, and stop trying to pick market tops and bottoms
More and more, I find that I cringe a.. Read More

How to profit from dual-class shares of Canadian stocks

How to profit from dual-class shares of Canadian stocks

When it comes to dual-class shares, voting shares have certain advantages over non-voting shares
Aside from specific investments (such as U.S. and Canadian stocks, income trusts or exchange-traded funds), our Inner Circle members ask us a wide range investment questions. For example, I’ve been asked in… Read More

Pendulum theory: An imperfect way of understanding the stock market

Pendulum theory: An imperfect way of understanding the stock market

The pendulum theory grew out of Sir Isaac Newton’s 17th-century studies of gravity and physics, particularly his second law of motion. Yet the theory turns up in discussions of all sorts of non-mechanical topics. This includes investors’ efforts at understanding the stock market.
You could sum… Read More