INTRODUCTION charge and find out much more about what they're doing when they conserve and invest their hard-earned cash. Many financiers don't understand where to turn, whom to trust, or what they should stop doing in order to attain true superior financial investment efficiency. You don't need to give your money to a Bernie Madoff, who'll take it but won't inform you exactly what he's making with it.

At least, you need to discover and understand well the sound concepts, proven guidelines and techniques that can secure and develop your investment portfolio over time. Half of all Americans conserve and invest; now it's time to find out to do it smartly with vital knowledge. When I began investing, I made the majority of the exact same mistakes you've probably made.

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

Numerous do not. You pay far less attention to a company's book worth, dividends, or PE ratiowhich for the last 100 years have actually had little predictive worth in finding America's most effective companiesand focus rather on vital traditionally proven aspects such as strong revenues and sales development, price and volume action, and whether the company is the top earnings leader in its field with a superior new item.

All these sensible actions are completely contrary to human nature! In truth, the stock market is humanity and crowd psychology on daily screen, plus the age-old law of supply and demand at work. Since these 2 aspects stay the exact same with time, it is exceptional but real that chart patterns are simply the exact same today as they were 50 years ago or 100 years earlier.

All of these stocks had spellbinding price relocations. Charts plus earnings will assist you tell the very best stocks and general markets from the weaker, riskier stocks and markets that you should prevent entirely. That's why I put all these impressive chart examples in Chapter 1, with notes marked on each chart to help you find out a skill that could simply alter your whole life and let you live better and far smarter.