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

The top tech stocks will have this hidden asset

The top tech stocks will have this hidden asset

Look for hidden assets and a strong base of operations to gain the most from your investments in the top tech stocks
It’s natural to think you profit best from technology by investing in shares of top tech favourites. But this can lead to disappointment. Tech… Read More

Use a Technical Analysis Education to help you Make Better Stock Picks

Use a Technical Analysis Education to help you Make Better Stock Picks

Support your investment decisions with a technical analysis education to make more profitable stock selections—but remember, it’s just one of many tools
Technical analysis is the process of analyzing a stock’s past and historical price movements to attempt to determine future prices.

Here’s how to use it… Read More

Follow these Investment Rules For More Profitable Investing

Follow these Investment Rules For More Profitable Investing

Follow these Successful investment rules to help you find winners like spinoffs—and avoid potential losers like new issues.
You might say there are two kinds of investment rules that can help you with investing decisions—soft and hard. Soft rules apply to things that can change such… Read More

Calculate Earnings Per Share for Stronger Market Understanding

Calculate Earnings Per Share for Stronger Market Understanding

Calculate earnings per share in conjunction with other financial ratios, like price-sales, and you’ll add to the depth of your stock researching capabilities
One key fact about life in today’s investment world is that it offers a multitude of choices. I mentioned a few weeks ago… Read More

Identify and Avoid a Costly Speculation Boom

Identify and Avoid a Costly Speculation Boom

Avoid costly mistakes in penny stock and venture capital investments by navigating speculation booms
In the 1990s and early 2000s, many Internet stocks rose to extraordinary heights based on the number of visits to their websites, rather than dollars in their bank accounts. Back then, lots… Read More

Real-return Bonds and How They Compare to Regular Bonds

Real-return Bonds and How They Compare to Regular Bonds

Real-return bonds pay a return adjusted for inflation. But when you buy a real-return bond, you are only protecting yourself against unanticipated rises in inflation.
Real-return bonds pay you a rate of return that’s adjusted for inflation, but that’s not always as promising as it seems.

When… 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 on how to buy stocks online and show you how to put them to work in 2019–without any need for practice.
Today’s tip: “Practice accounts that let you buy stocks online without real money may seem to be… Read More

7 ways Canadian stock options will cost you money

7 ways Canadian stock options will cost you money

Canadian stock options can generate a lot of money for your broker, but here’s seven ways they can cost you even more
Trading Canadian stock options can generate a lot of brokerage commissions, which is why some young, aggressive brokers recommend them for their clients. That’s despite… Read More