Friday, October 14, 2016

Money Show 2016 - Charles White

Charles White's talk was entitled "Understanding How Markets Function and Having your own Investment Plan is the Best Investment Strategy". Charles White is a Business Development Advisor for Desjardins Online Brokerage.

The who, what, why in investing is not like in the movies of Wall Street, Wall Street Wolfe or the Big Short. However, there is some truth in these movies. If you want to invest, first know thyself. Do you have the time, interest and knowledge to invest? You have to like the market. Knowledge is big. The markets are open between 9:30 am and 4:00 pm. When you trade stay within these times ass there are more market participants.

The market is a meeting place between companies and individuals who want to invest and companies that need money. The market fluctuates, usually because of specific events. What makes a good day trader is a person who does not try to outsmart the market. Why invest? You do it to get some better returns. This would be investing in Real Estate, stocks, commodities, gold and silver.

Have a plan to win. Have a strategy. Write out your plan. You need diversification. The objective of a plan is to state where you stand. Analyze your objectives. Draw up a budget. Invest your money. Analyze how you do. Adjust your objectives. Know where you stand. Have an emergency fund. Plan for retirement and how you will handle debt.

Determine your risk profile. If you are conservative you might want a portfolio with 70 to 75% in fixed income, 15 to 20% in equities and 5 to 15% in cash. If you are aggressive, you might want a portfolio with 80 to 100% in equities, 0 to 10% in cash and 0 to 10% in fixed income.

What you want to avoid is investing in one stock or one type of investment. Diversification depends on the individual. For a stock portfolio you need 10 to 12 stocks. Love your parents, not your investments. Time is on your side. Keep your head above water. It is bad for example to investment your rent money in stock.

You can find investing information from the internet, family and friends, books, articles, recordings (like BNN) and Webinars. Build a portfolio using stocks, ETFs, Mutual Funds, Bonds and GICs. You do not have to stop investing when you retire.

Build a watch list. Have a stock portfolio of 10 to 12 stocks. Do not micromanage your portfolio. Diversify your stock portfolio with stocks of different skill sets. Today some 40% of all stock trades are by smart phones.

On my other blog I wrote today about HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more. The next stock I will write about will be Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more on Monday, October 17, 2016 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.

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