Applying Our Three Keys for Profit

Article Excerpt

Our three-pronged approach to investment success is particularly well-suited to times like the present, when one particular group of investments (in this case, Resources & Commodities stocks) is making great gains and leading the market higher. Here are our three keys to successful investing: #1. Invest mainly in well-established companies. If you buy well-established or high-quality investments and hang on to them, it eventually pays off. High-quality stocks sometimes run into deep trouble and go through lengthy struggles, just like lesser investments. Eventually, though, most solve their problems and go on to thrive anew. #2. Invest mainly in companies that are currently outside the glare of the broker/media limelight. This does not mean you need to concentrate on little-known or obscure stocks. It simply means you should avoid buying what you might call the ‘flavour-of-the-month’ stock — the one that is on every front page, cable TV program or broker’s buy list. That degree of popularity often coincides with a temporary peak in the price…

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