INTRODUCTION charge and find out a lot more about what they're doing when they save and invest their hard-earned money. However, many investors do not know where to turn, whom to trust, or what they must stop carrying out in order to attain real superior financial investment efficiency. You do not need to provide your cash to a Bernie Madoff, who'll take it however won't inform you exactly what he's doing with it.

At the minimum, you require to learn and comprehend well the sound concepts, proven guidelines and techniques that can secure and build your investment portfolio in time. Half of all Americans save and invest; now it's time to discover to do it wisely with critical know-how. When I started investing, I made the majority of the exact same errors you have actually probably made.

And when you buy more, you do it only after the stock has actually risen from your purchase cost, not after it has fallen listed below it. You buy stocks when they're nearer to their highs for the year, not when they have actually sunk lower and look low-cost. You buy higher-priced, much better quality stocks rather than the lowest-priced stocks.

Numerous don't. You pay far less attention to a company's book value, dividends, or PE ratiowhich for the last 100 years have had little predictive value in finding America's most effective companiesand focus instead on important traditionally proven elements such as strong profits and sales growth, price and volume action, and whether the company is the number one earnings leader in its field with a superior new product.

All these sensible actions are completely contrary to human nature! In reality, the stock market is human nature and crowd psychology on everyday screen, plus the age-old law of supply and demand at work. Due to the fact that these 2 elements remain the exact same gradually, it is remarkable but true that chart patterns are just the same today as they were 50 years ago or 100 years earlier.

All of these stocks had spellbinding price relocations. Charts plus revenues will help you tell the very best stocks and basic markets from the weaker, riskier stocks and markets that you should avoid altogether. That's why I put all these outstanding chart examples in Chapter 1, with notes marked on each chart to help you find out an ability that could simply change your whole life and let you live much better and far smarter.