Intro charge and find out far more about what they're doing when they save and invest their hard-earned cash. Lots of investors don't understand where to turn, whom to trust, or what they need to stop doing in order to achieve real exceptional investment performance. You don't need to give your cash 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 find out and understand well the sound principles, proven guidelines and methods that can protect and build your investment portfolio with time. Half of all Americans save and invest; now it's time to discover to do it smartly with critical knowledge. When I began investing, I made most of the exact same mistakes you've probably made.

And when you purchase more, you do it only after the stock has increased from your purchase price, 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 cheap. You buy higher-priced, much better quality stocks rather than the lowest-priced stocks.

Many do not. You pay far less attention to a business'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 rather on crucial traditionally tested elements such as strong earnings and sales growth, price and volume action, and whether the business is the number one profit leader in its field with a superior brand-new product.

All these sensible actions are totally contrary to human nature! In truth, the stock exchange is humanity and crowd psychology on daily display 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 back.

All of these stocks had spellbinding cost relocations. Charts plus revenues will help you tell the best stocks and basic markets from the weaker, riskier stocks and markets that you need to prevent entirely. That's why I put all these impressive chart examples in Chapter 1, with notes marked on each chart to assist you find out a skill that might just change your whole life and let you live much better and far smarter.