How To Invest

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

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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.

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How To Invest Library Archives
Here’s a question we’ve received in various forms from a number of clients and readers. Even those who haven’t asked may wonder about the subject:

Q: A lot of the stocks you’ve recommended, and I’ve purchased, are now at or near highs (thanks!). I’m wondering if it might be time to move into cash to wait for a market downturn....
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CANADIAN NATIONAL RAILWAY CO., $156.04, Toronto symbol CNR, is a buy.

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The company is rewarding investors with a 19.1% dividend increase....
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The company’s customers are spread across the resources, construction, manufacturing and transportation industries.

Wajax is now buying the assets of Thunder Bay, Ontario-based Process Flow Systems Ltd....
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