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

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

Theme Investing: Trendy stocks will often lead you into losses

Theme investing, particularly when snatched from the latest headlines, may seem appealing—but more often than not will lead to poor returns
Theme investors zero in on something that’s going on in the world—in business, politics, technology or society as a whole—and try to cash in… Read More

Practice stock trading accounts: A training tool or a distraction?

Model portfolios and practice stock trading have a lot in common. They both serve to distract investors from long-term investing goals.
The online brokerage industry is winning a lot of attention and goodwill for itself by offering “practice accounts.” These accounts are supposed to be identical… Read More

Planning Ahead: How to execute a tax-loss selling strategy.

Planning Ahead: How to execute a tax-loss selling strategy.

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 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 of investment questions. For example, I’ve been asked… Read More

How to Buy International Stocks to Enhance and Diversify Your Portfolio

How to Buy International Stocks to Enhance and Diversify Your Portfolio

For Canadian investors wondering how to buy international stocks, ADRs, and international ETFs may be a safer option than picking individual overseas stocks
We believe most investors could benefit from holding some foreign and international investments in their portfolios for added diversification. And growing markets like… 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