the stock market
The appeal of trying to “time” the market—predict when it will reverse course—is never greater than during periods of heightened global conflict. That’s understandable.
But it always pays to remember that market timing tends to work sporadically at best, and then only with the help of beginner’s luck. Worse, beginner’s luck can evaporate just when you need it the most. Market timers may earn 10% each on three trades in a row, then lose 50% on their fourth one. This leaves you with a loss of more than one third of your initial stake, without even counting trading costs.
To succeed as an investor, you need to understand that your decision-making ability comes with an all-too-human limitation: in deciding when to buy and sell, nobody gets it right every time. That’s why successful investors build an investment portfolio, rather than a collection of stocks or, worse, a series of short-term trades.
But it always pays to remember that market timing tends to work sporadically at best, and then only with the help of beginner’s luck. Worse, beginner’s luck can evaporate just when you need it the most. Market timers may earn 10% each on three trades in a row, then lose 50% on their fourth one. This leaves you with a loss of more than one third of your initial stake, without even counting trading costs.
To succeed as an investor, you need to understand that your decision-making ability comes with an all-too-human limitation: in deciding when to buy and sell, nobody gets it right every time. That’s why successful investors build an investment portfolio, rather than a collection of stocks or, worse, a series of short-term trades.
Borrowing to invest in dividend stocks may be a good decision if you meet these six criteria, like using a lower-risk investing strategy
Retirement investments to avoid include everything from bonds down to stock options. Here’s why.
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.
ADRs (American Depository Receipts) provide exposure to European and Japanese stocks, but what are the fees charged to investors?
To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.
There is a randomness to stock market growth that can lead investors to make poor decisions if they don’t keep diversification and long-term goals in mind
Build a retirement investment plan more successfully when you focus on tried and true ways of saving, like using an RRSP and a RRIF, among other strategies
Invest in spinoffs and avoid IPOs when you look for new companies on the stock market. This should boost your long-term portfolio returns
Canadian REITs are a good option for those wanting real estate representation in their portfolio