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

Tax shelters in Canada: 3 choices you need to know about

Tax shelters in Canada: 3 choices you need to know about

Tax shelters in Canada that can help you save money when you use them correctly
Tax shelters in Canada aim to reduce or eliminate your tax liability.

Tax shelters are legal investment vehicles that let investors pay less tax. Some are risky and should be avoided, like… Read More

How to get the most capital gains tax benefits from your RRSP

How to get the most capital gains tax benefits from your RRSP

Investors sometimes ask us whether they should hold certain investments inside or outside an RRSP to get the most tax benefits. Historically, there were certain investments that could increase your capital gains tax if you held them in your RRSP. In September 2019, that remains the case.
Holding… Read More

QUIZ: Test your knowledge on the different industry sectors

QUIZ: Test your knowledge on the different industry sectors

Learn what role the different investment sectors play in helping you build a diversified portfolio by testing your knowledge with this quiz
One key part of our three-part investing program is to diversify by spreading your money out across most, if not all, of the five… Read More

Learn about Bitcoin investment risk—and its false narrative—to protect yourself and your portfolio

Learn about Bitcoin investment risk—and its false narrative—to protect yourself and your portfolio

Avoid bitcoin investment risk and the false narratives that surrounds it. This is important to know to keep your overall investment portfolio on the right path
Bitcoin investment risk is real and we think it needs to be well understood by all investors.

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

Discover how a beginning… Read More

Investing in stocks: The hidden drawbacks of split-share corporations

Investing in stocks: The hidden drawbacks of split-share corporations

Split-share corporations come with inherent drawbacks that can hand investors unexpected and unwelcomed costs before they’d planned
Split-share corporations: they’re just one of the areas that Pat McKeough’s Inner Circle can tap into our investment research. Members also get to ask investment questions of Pat and his… Read More

QUIZ: Learning about stocks for fun—and profit

QUIZ: Learning about stocks for fun—and profit

Successfully learning about stocks means discovering how to do insightful research—but above all, investigating widely, rather than focusing on a narrow range of information
When they’re just starting out, investors learning about stocks need to look at a wide range of information before deciding whether to… Read More

The hidden dangers of online trading

The hidden dangers of online trading

It doesn’t get as much play in the media as it did a decade ago, but even in the volatile market of 2019, online trading carries hidden dangers that aren’t always evident at first.
The main risk comes from the fact that online trading may seem deceptively easy. The… Read More

QUIZ: Do you know the RRIF rules that lead to greater profit?

QUIZ: Do you know the RRIF rules that lead to greater profit?

Discover how much you already know (or don’t know!) about RRIF rules and how this great tax-deferral opportunity can help you plan for your retirement
Like a Registered Retirement Savings Plan (RRSP), a Registered Retirement Income Fund (RRIF) can hold a range of investments. You don’t… Read More