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

What do playing the stock market and chess have in common?

What do playing the stock market and chess have in common?

Successfully playing the stock market — like chess—is never about going for broke.
Many investors like to use analogies from sports or the military to describe their investment approach, so they’ll often use the phrase playing the stock market. But if I had to compare our… Read More

The best choices for BCE and Bell Aliant shareholders

The best choices for BCE and Bell Aliant shareholders

This special edition of “Best Canadian Stocks”  was posted in 2014 and focused a key acquisition for BCE at the time – the remaining shares of Bell Aliant Inc.
BCE INC. (Toronto symbol BCE; www.bce.ca) has agreed to pay $3.95 billion in cash and stock for the 56%… Read More

5 powerful long-term investment strategies for higher returns

These long-term investment strategies will accelerate your long-term investment results.
Here are five long-term investment strategies that we are certain will enhance your long-term investment results. They’ve long been part of the advice we give in our investment services and newsletters, including Canadian Wealth Advisor, our… 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
In assessing the differences between a penny stock vs. regular stock, it’s important to define the two. Many of the best “regular stocks” are blue chip stocks. Blue chip companies can give investors an additional… 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 2018, 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

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

Capital gains tax: Canada makes this the cheapest tax you’ll ever pay

Capital gains tax: Canada makes this the cheapest tax you’ll ever pay

A hot U.S. stock market has spurred questions about capital gains tax. Canada has seen similar stock market gains, sparking the questions
There are three forms of investment income in Canada: interest, dividends and capital gains. Each is taxed differently. Here’s a reminder of how smart investors use their knowledge… Read More