Intro charge and discover a lot more about what they're doing when they conserve and invest their hard-earned cash. However, numerous investors don't know where to turn, whom to trust, or what they must stop carrying out in order to accomplish real superior investment efficiency. You don't have to offer your money to a Bernie Madoff, who'll take it but will not tell you exactly what he's doing with it.

At the minimum, you need to discover and comprehend well the sound principles, tested rules and techniques that can safeguard and construct your investment portfolio with time. Half of all Americans save and invest; now it's time to find out to do it wisely with vital knowledge. When I started investing, I made many of the same mistakes you've probably made.

And when you buy more, you do it only after the stock has increased from your purchase cost, not after it has fallen below it. You purchase stocks when they're nearer to their highs for the year, not when they've sunk lower and look low-cost. You buy higher-priced, better quality stocks instead of the lowest-priced stocks.

Many don't. You pay far less attention to a company's book worth, dividends, or PE ratiowhich for the last 100 years have had little predictive value in spotting America's most successful companiesand focus instead on essential traditionally proven aspects such as strong profits and sales growth, rate and volume action, and whether the company is the top profit leader in its field with a superior new product.

All these sensible actions are totally contrary to humanity! In truth, the stock market is humanity and crowd psychology on everyday screen, plus the age-old law of supply and need at work. Because these 2 elements stay the same over time, it is impressive but real that chart patterns are just the exact same today as they were 50 years ago or 100 years ago.

All of these stocks had spellbinding rate relocations. Charts plus revenues will help you tell the finest stocks and general markets from the weaker, riskier stocks and markets that you need to avoid entirely. That's why I put all these impressive chart examples in Chapter 1, with notes marked on each chart to help you learn a skill that might simply alter your entire life and let you live better and far smarter.