Monthly Archives: November 2013

How Do You Trade Stocks Online in Canada?

Trade stocks online in CanadaHow do you trade stocks online in Canada?” It’s a question my friends (and blog readers) often ask me. The only reason trading stocks online in Canada is tricky is because you don’t learn it in school.

So consider this your crash course for trading stocks online in Canada.

Trading Stocks Online in Canada — Need To Know Info:

Trading stocks online in Canada isn’t talked about much on the day-to-day. Maybe it’s because we are all too polite (and awkward) to talk about money. But you needn’t worry any longer! Because trading stocks online in Canada is very easy. And there’s definitely something for everyone (no matter what your income or risk tolerance is). That’s what you need to know.

But if you’re just getting started:

And if you don’t know anything at all about trading stocks online in Canada, the single best investment you can make is by reading the Money Sense Guide To The Perfect Portfolio. It is a really short book that is easy to understand and highly illustrated. You can read it in an afternoon and it will give you a really digestible look at your investing options as a Canadian.

If you’re ready to get going a little more actively, here are some starting points…

3 Ways To Trade Stocks Online in Canada:

Here are three ways you can quickly get stated trading stocks online in Canada. They are presented from easiest to most complicated. If you have TFSA contribution room I recommend you start there. If you’re young I think the TFSA especially makes sense because you can defer your RRSP contributions to when they tax benefit will be higher.

So once you open a TFSA at your bank, here are your options for trading stocks online in Canada:

  1. Buy Index Funds/Mutual Funds Through Your Bank: If you already bank at a major Canadian financial institution you will be able to easily open a TFSA. You can access this account through your regular online banking and you can transfer money in any time to buy your designated funds. I think the best case scenario is to open a TFSA with TD and buy their e-series funds which are the lowest fee mutual fund in Canada (and note – you can only buy them online). If you’re feeling a little more feisty about your stock trading options…
  2. Buy ETFs in a Brokerage Account: If you want to be a little more hands on with your asset allocation then opening a brokerage account and buying ETFs is an easy next step. You can choose a discount Canadian online stock broker and then buy ETFs each month by transferring in money from your bank account via online bill payment. It’s really quite easy. If you sign up with Questrade (see below) they will let you buy the ETFs commission free, which is a hard value proposition to argue with. This is still a buy and hold approach but gives you a bit more selection on what you want to invest in and you aren’t paying any fees to an adviser.  Note that you usually need at least $1,000 to open a brokerage account.
  3. Use a Canadian Online Broker to Trade Stocks: Trading stocks in Canada is easy because there are a number of discount brokerages you can use. From the research I’ve done Questrade, has the cheapest fees. They also have a mobile app and a pretty good trading platform. You can also open a practice stock trading account to get familiar with the ins-and-outs of trading stocks online in Canada. Once you’re ready: You can open a TFSA with Questrade and then just transfer money in from your bank account. It’s easy. And then you can buy and sell stocks at will. Just one word of warning: Questrade is a discount broker so although they are cheap they don’t give you much service. Much of the negative reviews on the internet about Questrade are from people who are in over their head and needed more hand-holding. In my experience they have good support you just need to be proactive about it and give them a call/live-chat. I can also give you 10 free trades (more below) so that can ease the growing pains.

So there you have it…

I know that’s a lot of information, but does it all make sense? You can take it slow. No pressure. And hey…

If you want to see a little more about trading stocks online in Canada, check out this short video I made…

Trading Stocks Online in Canada [VIDEO]

Trade Stocks Online in Canada Free

If you are interested in getting started trading online, specifically by opening a brokerage account, then please contact me. You can use the Stock Ideas Contact Form to send me a short message. Then I can give you a special link that entitles both of us to 10 free trades. This is worth $50 and can go a long way in helping your online stock trading get started on a profitable foot.

So send me a note, will ya? If you’re in Canada, why not get more proactive with your money and trade your own stocks online.

And by the way: If you find yourself short on stock ideas, sign up for email updates below to get exclusive trading ideas available only through email.

Mock Stock Trading — Save Your Money

Mock Stock Trading Online

Investopedia is a great place to practice mock stock trading.

Mock Stock Trading (as in stock market simulations and stock games) are a great way to hone your stock trading strategy… without blowing your bank.

Mock stock trading is especially good for beginners who are just starting out. That’s because mock stock trading allows you to practice your approach to investing and asset management, without risking any of your real money. You can test drive your investment approach and it doesn’t matter if you crash!

If you have never heard of mock stock trading, or don’t know where you can find the best free stock trading games online, watch the video below:

Mock Stock Trading Video:

So you see mock stock trading plays an important role. And…

When you are still refining your approach to selecting and trading stocks, then having a practice brokerage account keeps you honest. If you track your stock picks on your own, outside of a stock picking game (like in an excel spreadsheet), you are likely to make mistakes in your record keeping.

One of the great things about mock stock trading games are that they keep track of your P and L for you… so you just have to worry about your stock ideas!

Who Can Benefit From Mock Stock Trading:

If you’re relatively young and still saving up money to trade stocks, then a mock stock trading game can definitely be of value to you. You are still able to test out your ideas while you build up your nest egg. It is also likely to keep you interested in working towards your savings goals. Plus if you’ve never been through the stock trading process, placing orders online in a mock stock trading simulator is a great way to learn how to trade stocks online.

Mock stock trading isn’t just for beginner investors though. If you are testing out a new strategy or asset class (like options or forex) then mock stock trading games can be a great way to iron out your approach without risking your hard-earned capital. When I started dabbling in options trading I did it first in a mock stock trading account (which saved me a lot of money).

Of course, mock stock trading simulators aren’t perfect…

A Mock Stock Trading Drawback

Of course mock stock trading isn’t perfect. One drawback of mock stock trading is that it’s not ever as emotionally intense as investing with real money. In the latter circumstance you are likely to be much more involved with your positions because you have real money on the line… and you probably don’t want to lose it.

On the other hand, when you are trading stocks in simulation (even though you obviously want to win) it’ still not as intense as putting your real money on the line. That said, if you take mock stock trading seriously and set some performance goals you can get a lot out of the experience.

So now I’m curious to ask you…

Have you ever benefited from mock stock trading?

Let me know in the comments below about your mock stock trading experiences…

And By The WayIf you find yourself short on stock ideas, sign up for email updates below to get exclusive trading ideas available only through email.

Security Analysis (Book Review)

Security Analysis Book Review

Security Analysis is an investing classic…

Security Analysis by Benjamin Graham and David Dodd is the pre-eminent text on assessing the fundamental value of any equity or debt instrument. So let me just say…

If you’re interested in learning about fundamental analysis, then Security Analysis should be your go to reference book. It’s all about understanding the intrinsic value of a business…

And more importantly: If that means you should invest in the business. In this book review I will tell you lots more about this classic investing book. For example:

The breadth and depth of Graham and Dodd‘s Security Analysis is so encompassing that whether you’re looking at obscure convertible debt instruments or common stocks, there is sure to be advice you can use to guide your decisions. And by the way…

If you’ve never heard of Security Analysis before:

A few years ago, Warren Buffett said he’s read Security Analysis four times. And actually…

Graham and Dodd were both Professors of Finance at Columbia University who taught Warren Buffett at the outset of his investing career. Buffett was so enthralled with what he learned from Graham and Dodd that he eventually went to work for them at their investment company.

Additionally, you may have already read the best selling Intelligent Investor, which is a watered down version of this seminal text. But with Security Analysis, you’re getting the gory details…

Why You Should Read Security Analysis:

Security Analysis is a fascinating read. And if you’re obsessed with investing, or contemplating a career in finance, then it is absolutely a book you can’t miss. It was originally published in 1934 and has stood the test of time (including the scrutiny of Efficient Market Theorists). The newest editions of this classic investing book also have contemporary commentary from modern day investing legends. It’s really helpful how the expert advice is applied to today’s markets.

And I mean all markets. Security Analysis coves all types of securities, debt instruments and asset classes. In fact, when I started reading Security Analysis I was a little bored because the first couple hundred pages are all about investing and valuing various types of bonds. Security Analysis was definitely instructive, but it wasn’t totally applicable to what I was doing. Luckily…

Security Analysis spends hundreds of pages focusing on the different tricks and tactics management can use to deceive investors. It’s really insightful to see these financial sleights of hand called out. And learning how to avoid them makes you a much better investor. But before I get too carried, away, there’s something you should know.

Security Analysis isn’t for everyone…

Who Should NOT Read Security Analysis:

Security Analysis is an amazingly in-depth look at equity, debt and almost any other investment you can think of. But if you’re just getting started out in your investing, this book might discourage you. This is a professional-level discussion about how to figure out what securities are worth, so there is a lot of detail that might bog you down if you’re just getting started.

So what do I recommend?

Beginners might want to avoid this 950 page textbook-style book. Instead: If you’re just starting out with your investing, or you have a more passive interest in picking your stocks, then you would probably be better off reading The Intelligent Investor. This book was published by Ben Graham to make the lessons of Security Analysis a little more digestible for the average person.

The Intelligent Investor is the book I read before Security Analysis and highly recommend starting there if you’re not familiar with Benjamin Graham. So let me just say one more thing:

If your main focus is day trading stocks, or using technical analysis to guide your decision-making, then Security Analysis is not for you. Security Analysis is entirely fundamental in scope. And that’s because it is a veritable bible of Fundamental Analysis. It’s an in-depth reference book that serves as a college textbook at some of the world’s best business schools.

The Best Part About Security Analysis:

Security Analysis is an incredibly instructive read. And since it is so old you can tell it’s stood the test of time. There is a long list of successful investors who have attributed their huge portfolios to the school of value investing (See: The Superinvestors of Graham-and-Doddsville – an essay by Warren Buffett).

The evidence is pretty overwhelming. Which leads me to say: My favourite part about Security Analysis is that you know the information is trustworthy. Now I know that sounds simple… But, it’s especially important in today’s day and age.

Think about it:

More and more people are learning to trade their own stocks online. And there are tons of internet newsletters promoting pump and dump stock schemes… so having good information goes a long way. Since Security Analysis is a 90 year old textbook written by brilliant business professors and fund managers, you know you can trust it… (And use it to make money).

Now some people say…

“If this kind of fundamental analysis works so well why isn’t everyone a value investor?”  And the truth is, value investing is almost always emotionally difficult. Fundamental analysis can be safe in the long term, but it might be dangerous from the perspective of a short term technical trader. So inherently, there is a lot of volatility involved. And that can be tough to stomach.

For people who are actively managing their investments and looking to trade their stocks every couple of days, this fundamental approach just doesn’t make sense, (at least not on it’s own). You day-traders quickly exploit short term intra-day inefficiencies. The value investing methodology is concerned with the fundamental underpinnings of the longer-term trend. But…

At the end of the day, that’s a pretty good thing to know too!

Security Analysis – The Final Word

Security Analysis by Benjamin Graham and David Dodd is a book like no other. It gives an object view on investing intelligently in all sorts of asset classes. After reading this book, I understood why it was so important to Warren Buffet. I use the methodology described every day, in every investing decision I make.

So if you’re seriously interested in investing and are pursuing a career in finance then I really recommend you buy Security Analysis on Amazon right now.

Security Analysis Video Book Review:

You Might Be Interested In Reading:

How To Find Stocks To Buy Right Now

How To Find Stocks To Buy Right Now

Learn How To Zoom in on Stocks To Buy Right Now

Knowing How to Find Stocks To Buy Right Now is one of the most important skills in stock trading.

If you are a day trader or swing trader you are almost certainly focused on finding stocks that are breaking out right now… and… by the way…

Learning how to find stocks to buy right now is actually pretty easy. It takes practice and patience, (don’t get me wrong). But there aren’t any deep and dark secrets to finding the best stocks to buy right now.

So Keep reading this blog post to understand how you can find high profit potential stocks on a consistent basis.

How To Find Stocks To Buy Right Now:

Knowing how to find stocks to buy right now means knowing how to find stocks that are moving. That’s because if a stock is standing still, you cannot make any money trading it. So a good place to start is always to find stocks that are advancing. But wait…

When you’re looking for stocks to buy right now, you want to be careful. You don’t want to buy stocks that have already moved too far. And that’s because if you show up to the game too late, you’re going to be left holding the bag. That last thing you want to do is buy a stock just when it has run out of gas.

So goldilocks, how do you find the stocks that are “just right” to buy now? It’s a good question. And hopefully this video below can show you one of my favourite tricks for finding stocks to buy right now…

How to Use Finviz To Find Stocks To Buy Right Now [VIDEO]:

Technical Analysis For Finding Stocks To Buy Right Now:

Technical analysis is a key factor in figuring out how to find stocks to buy right now. The whole point of technical analysis is to study price patterns to try and forecast where a potential stock might breakout (or down). If you can get good at using technical analysis to find stocks to buy right now you can have a chance of making money in the market every single day. But let me warn you…

While it sounds simple in theory, using technical analysis to figure out which stocks to buy right now takes a lot of practice. You need to spend your evenings finding promising potential profit opportunities (mostly by looking at charts). Then you need to go in the next day, watch what happens, and jump in if you get your “trigger.” Finally, you’ll need practice cutting your losers and letting your winners run. Nothing is guaranteed in technical analysis – it can help you figure out how to find out which stocks to buy right now, but profiting from it will come over time as a you learn, ex.

So how do you get good at technical analysis when you’re looking to buy stocks?

The key goal for me when I’m using technical analysis is: “Come up with a trading plan, execute the trading plan, and then sit tight while it unfolds.” This requires patience, patience and more patience. To further put a spin on it for you: Each moment in the stock market is unique, so even the ideal chart pattern or “buy now indicator” might only be right a small % of the time.

And once you do figure out your simple stock trading system you will need emotional fortitude to stick to it and see your plans through. The hardest part of trading is often controlling your own emotions – this is especially true in the day-trading-world of technical analysis.

But truthfully, (just between you and me) I find technical analysis to be a bit of a one-dimensional approach to stock trading. So when you’re considering how to find stocks to buy right now, fundamentals should be a factor too (especially if you’re a longer term investor).

Fundamental Factors Influencing Stocks To Buy Right Now:

When you’re learning how to find stocks to buy right now, fundamental analysis should not be forgotten. While you will find fundamentals often take longer to exert themselves, they are powerful and can overcome the “technical factors” — like a hot knife through butter.

So here are the two main things I keep in mind when considering fundamental analysis as a way to find stocks to buy right now:

I like to find stocks that are well-valued and that have a shareholder friendly management. In the most basic terms, well-valued usually means the stock is trading below book value and at a low P/E ratio. It also means management has performed over the last few quarters, they are making money and they are feeling optimistic in their outlook going forward.

The reason all these fundamental factors are important to me is because they can help sustain your profits when you find a stock that’s ready to buy now. Call me old-fashioned, but I hate the idea of buying technical breakouts when the stock in question is an unprofitable company trading at a crazy valuation. There is no long-term opportunity there. When you buy stocks that are cheaply valued you can have some conviction in your decision and you might even find yourself not just playing a nice breakout, but at the start of a whole new uptrend.

Second and most importantly, fundamentals can really serve as a catalyst anytime a company announces an earnings report. Earnings often shoot a stock up or down, so they can be a great place to find stocks to buy right now. If you have a stock that you like and you are watching the price action, a positive earnings announcement can be just the catalyst you need to see your stock shoot higher. And the great thing about earnings events is that you can prepare for them with some predictability (even if it’s planning for what you will do after the announcement)

So in summary, fundamental analysis takes longer to materialize but it can really provide fuel to the fire and keep your stock moving higher for a sustained period of time. Plus you can buy or sell in anticipation and reaction to earnings announcements to try and play for some extra volatility. Does that make sense?

Wait, it gets better. Let me tie it all together for you…

The Hybrid Approach To Finding Stocks To Buy Right Now:

You might have seen this coming: But my favourite way to find stocks to buy right now is using a hybrid technical and fundamental approach. Basically, I look for fundamentally solid situations (like companies that are trading at low P/E ratios and have improving operating cash-flow) and then wait for the technical situate to shape up. Why do I do this?

My approach to finding stocks to buy right now might be a little slower, but it gives me the full pictures. And this holistic understanding is important for me if I want to have conviction in the trade. It helps me understand both the “growth story” of the company, and gives me context for any technical breakouts. If I think management is doing a good job growing the company and they are re-investing earnings effectively, then I am likely to hold more of the stock when it has a technical breakout. Pretty cool, right?

So there you have it! Those are most of my tricks for how to find stocks to buy right now. You’ll always want to do lots of your own research whenever you’re finding a stock to buy. But hey, let me ask you…

How Do You Find Stocks To Buy Right Now?

If you find yourself short on stock ideas, sign up for email updates below to get exclusive trading ideas available only through email.

Why You Should Learn How to Trade Stocks Online

learn how to trade stocks online

Reading can help you learn how to trade stocks online…

Learn how to trade stocks online and you can change the way you live. If you think about it, trading stocks online is also the responsible thing to do.  Let me show you what I mean.

Learning how to trade stocks online is not something that’s commonly taught in our society. But learning how to take care of your money (so that it can start taking care of you) is one of the most important skills you can learn. That’s why buying and selling your own stocks is a great way to take the management of your money into your own hands.

Just think about this for a second:

Learning How To Trade Stocks Online — What’s The Buzz?

Think about how hard you work for your money. Think about the discipline it takes to save each month. And think about what would happen if your bank account leaked (read: inflation).

Don’t you want to learn the skills necessary to ensure your hard-earned capital is safe?

Well… when you learn how to trade stocks online,  you start down this road.

Now hear me out. I’m not saying you need to learn how to day-trade stocks online. But trading stocks online can be as simple as buying mutual funds through your online banking. In the latter case, a lot of banks and online stock brokers have commission-free buying of mutual funds and ETFs. And since there is no middle man, the fees you pay are much lower. Plus, you are completely in control of when your funds or invested or re-balanced.

So you have to admit… It sounds pretty good, right?

Without learning how to trade stocks online, you won’t be able access your own money in an affordable way. And hey, buying stocks online doesn’t have to be scary.  For example if you have a lower risk profile you can work with a no-fee financial advisor to come up with a plan. They’ll tell you exactly what to do to ensure you have 7-8 figures forty years from now. They tell you what stocks to buy and how often you need to trade them online.

But when you learn how to trade stocks online for yourself, you pay less in fees and you have more control of your capital. You can see your money all the time and you can move it to cash at a moment’s notice. And if you are particularly interested in exploiting possible stock ideas, then learning how to trade stocks online can be a gold mine for you. So you’re probably wondering…

“How Do You Actually Learn How To Trade Stocks Online?”

You can learn how to trade stocks online with hard work, focus and dedication. If you have never traded stocks before, you may want to consider starting off with an online stock market simulator that you can use to practice with while you refine your methodology and approach.

If you want to successfully learn how to trade stocks online you’ll need a straightforward framework you can use for your investment decision-making. There are a thousand questions you will have to ask yourself to make it through the often emotional journey of learning how to trade stocks online.

You’ll also need an online stock broker. Luckily the good folks over at Reviews.com have teamed up with some respected investment advisors to thoroughly analyze online stock trading platforms. Check out their website to find the right online stock trading platform for you.

Question & Answer For Learning To Trade Stocks Online…

  • How much money can you commit to learning to trade stocks online? How often can you contribute more money to buy stocks?
  • What’s your investment (or trading) time-frame? How long can you afford to have your capital tied up?
  • What role does fundamental analysis play in your approach to trading stocks online? What investing books do you need to read?
  • What role does technical analysis play in your approach to trading stocks online?
  • How will you refine your stock investing methodology into a trading system?
  • Where will you get your stock ideas?
  • What online broker will you use to trade stocks?

Of course these questions are only a starting point for learning to trade stocks online. And as you experiment to come up with the answers, you will inevitably have to go deeper into different facets of online stock trading. If you are going to be actively buying and selling shares in a company (or scarier yet, options) then you are probably going to have a bit of a learning curve experimenting how to profitably trade stocks online.

Is Learning How to Trade Stocks Online Easy?

If you want to learn how to trade stocks online, you will have to be committed. Learning how to trade stocks online profitably takes a lot of time. While money and skill are important, the basic fact is that there is a lot for you to learn if you want to trade stocks online and you are starting from scratch. Here’s why…

You need to familiarize yourself with many different approaches to stock market trading. Once you know your approach, you’ll need to find your online stock trading broker. You should budget a few weeks for getting your account setup and funded. But the good news is, once your brokerage account is set up you can easily buy and sell stocks online.

While you’re developing and refining your trading methodology you can read blogs like Stockideas.org to learn from the mistakes and lessons of others. Learning how others started trading stock online can save you a lot of time and money. Check out my YouTube channel for more free content on learning how to trade stocks online.

But aggressively trading stocks online isn’t all sunshine and lollipops you know…

It’s Hard To Learn How To (Day)-Trade Stocks Online

The hardest part about learning how to trade stocks online is controlling yourself. Because buying and selling stocks online is so easy, you can be tempted to make irrational decisions in the heat of the moment. To be honest, it’s very likely you’ll have a lot of these expensive mistakes at home. Which brings me to my next point…

Another thing to keep in mind about learning how to trade stocks online is that you’re often alone. Trading stocks online can be pretty intense. And if you’re learning by yourself it’s not like you are at a brokerage firm with some colleagues around to keep an eye on you. Often you’re at home or on the go and you’re trying to digest the swings of the market as you move. This can make it harder not to over-react, and another reason having a stock trading plan will make learning how to trade stocks online easier.

So once you find (1) an online stock trading (or investing) system that fits your risk profile and current position in life… and… (2) learn to implement

Now that you’ve read so much about learning to trade stocks online, you should get started! Read some stock trading book, learn to make a stock trading watchlist or watch stock ideas research videos.

What Questions Do You Have About Learning To Trade Stocks Online?

If you find yourself short on stock ideas, sign up for email updates below to get exclusive trading ideas available only through email.

Common Stocks and Uncommon Profits (Book Review)

Common Stocks and Uncommon Profits Book Review

Common Stocks and Uncommon Profits

Common Stocks and Uncommon Profits by Philip A. Fisher was accepted as gospel when it was first published in 1958, and it remains incredibly influential today…

Common Stocks and Uncommon Profits caught my attention when I saw it mentioned on an Amazon Review of The Intelligent Investor.

And here’s the interesting part:

The commenter said that while Ben Graham was responsible for 85% of Warren Buffett’s stock-picking approach, Phil Fisher’s Common Stocks and Uncommon Profits was what guides the other 15%.

Pretty cool, right?

So is Common Stocks and Uncommon Profits really a Warren Buffet-worthy book? Well, since I just finished reading this book I feel qualified to tell you, the answer is… yes! Common Stocks and Uncommon Profits is a terrific investing book and in this book review I will tell you why.

Why Read Common Stocks and Uncommon Profits?

Common Stocks and Uncommon Profits is very different from a lot of the investing books I read. The book is focused on soon-to-explode growth stocks, and the approach is quite a bit different from anything I’ve seen.  Here’s what I mean…

A lot of finance books deal with hard facts, like balance sheets and P/E ratios, Common Stocks and Uncommon Profits looks at a much more qualitative set of investment criteria.  Fisher doesn’t worry too much about traditional fundamental valuation metrics. Instead, he wants to find out for himself if the company is actually good or not.

And I’ll admit: It sounds simple at first. But once you start to dig into Common Stocks and Uncommon Profits you quickly discover a fascinating framework you can use to figure out if company’s have what it takes for years and years of earnings growth. Yup…

So here’s the best part:

The Best Part About Common Stocks and Uncommon Profits:

The best part about Common Stocks and Uncommon Profits are the first two chapters. The book wastes no time in cutting to the chase. The first chapter is about “Scuttlebutt” which is Fisher’s method for researching a company’s operations, sales prospects and management. the Scuttlebutt chapter is only 3 pages. But it’s incredibly valuable and sets the tone for the rest of the book.

Because the wisdom doesn’t stop there: Chapter 2 of Common Stocks and Uncommon Profits is made up of 15 questions that you should ask every company you’re evaluating for investment. It’s very actionable and you can start using this information immediately. You’ll be surprised at how much information is covered by the 15 questions. And you’ll almost automatically be a better investment analyst. To be honest…

Fisher even sounds like he  surprised himself with the accuracy of analysis he could conduct, just by calling a few customers, suppliers and vendors to see how they were influenced by management’s prospects. You will find the approach to security analysis outlined in Common Stocks and Uncommon Profits is surprisingly refreshing.

But it’s not like Fisher’s knowledge just dries up after the first two chapters…

Common Stocks and Uncommon Profits continues to deliver incredibly valuable information throughout. The middle section of the book goes into more detail on the most important of the 15 questions. It also addresses a lot of questions you might have, like, “When do I buy and sell growth stocks?

The last part of Common Stocks and Uncommon Profits is also very interesting because it’s focused on Fisher’s life. It’s like a mini-biography starting at the outset of Fisher’s career and explains how he came to manage such a large and successful firm.

I always find stock investor biographies to be fascinating. And discovering how Fisher learned his own stock picking theory helped me better understand his lessons.

I just have one word of warning.

One Thing You Should Know About Common Stocks and Uncommon Profits…

If you’re going to buy Common Stocks and Uncommon Profits to try and find stock ideas, there’s something you should know. Buying a book for the wrong reason sucks, so let me make this clear for you:

While this book provides all the questions you need to figure out if a company is positioned for decades of growth, you’ll have to actually do the work yourself. Fisher’s method is based on getting out there and seeing for yourself. He’s interested in asking the hard questions, and watching how management behaves when things are tough.

So while the lessons outlined in Common Stocks and Uncommon Profits are not as fast as pulling up financial statements. Fisher’s “Scuttlebutt” doesn’t require a PhD. It’s pretty straightforward. And you know you’re getting public information that most of the public doesn’t really know about. So should you buy Common Stocks and Uncommon Profits?

Common Stocks and Uncommon Profits – The Final Word?

Common Stocks and Uncommon Profits is a fantastic read that is different from a lot of the financial books you’ll find being published today. I found Fisher’s writing to be surprisingly refreshing. His approach is something that’s easy to forget in this day and age of technical analysis and high frequency trading, so I think it’s worth learning.

And hey, if it’s good enough for Warren Buffett it’s definitely of interest to me. That’s why I recommend you buy Common Stocks and Uncommon Profits on Amazon today.

Common Stocks and Uncommon Profits Details and Video Book Review

Author: Philip A. Fisher
Publisher: Wiley Investment Classics
Pages: 320

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Free Momentum Stock Trading Videos

Check out these free momentum stock trading videos to get ideas for how you can effectively find momentum stocks using free online research tools like Finviz.

In the videos below you’ll see how to set up a variety of stock screens to help you find the best momentum stock trading opportunities. The stock screeners below are designed to find you the best momentum trading ideas. And you can make these momentum stock screens for yourselves, free at finviz.com – just watch the videos below first!

Free Momentum Stock Trading Videos:

  1. FinViz Pattern Screen To Buy The Dip
  2. Use FinViz Signal To Find Stock Ideas
  3. FinViz Stock Screen For Safe Momentum Stocks
  4. FinViz Stock Screen For Fundamental Value
  5. Best Free Stock Screeners Online

What Are Momentum Stocks?

FinViz Stock Screens For Safe Momentum Stocks

Find Momentum Stocks Using Moving Averages

How To Find Momentum Stocks To Short-Sell

Best Momentum Penny Stocks

What Are Your Favorite Momentum Stocks?

As you know, momentum stock trading ideas can lead to all sorts of profitable investment opportunities. I’ve tried to cover a large variety of momentum stock trading ideas in the videos above. If you liked what you saw you can bookmark the Momentum Stock Trading Playlist.

But now let me ask you, what’s your favorite way to find momentum stock trading ideas?

If you find yourself short on stock ideas, sign up for email updates below to get exclusive trading ideas available only through email.

The Intelligent Investor (Book Review)

The Intelligent Investor (Book Review)

The Intelligent Investor is a must-read…

The Intelligent Investor, by Benjamin Graham is “The Definitive Book on Value Investing.”

The Intelligent Investor is one of my favorite stock investment books. And Warren Buffett also described The Intelligent Investor as the most influential investing book he has ever read. It actually prompted Buffett to seek out Benjamin Graham, take his course at Columbia Business School, and work for him at Graham-Newman Corporation. Pretty cool, right?

So is The Intelligent Investor the best investment book for you? Read this book review to get an in-depth book at all aspects of The Intelligent Investor and why it has stood the test of time.

Why The Intelligent Investor is a Must-Read:

The Intelligent Investor is an incredibly educational book that describes the concept of value investing. Value investing is the process of finding securities (stocks, bonds, preferred shares) that are trading below their intrinsic value – and it’s an investment approach that has proven to be very profitable over the years.

But The Intelligent Investor doesn’t just describe value investing…

The first section of The Intelligent Investor describes why common stocks generally make for a good investment over the long term, especially compared with “conservative” investments like corporate bonds and treasuries. Then Graham explains in detail how the passive intelligent investor can use indexing strategies to limit their risk and build wealth throughout their life. But The Intelligent Investor doesn’t stop there:

The next part of The Intelligent Investor describes the “enterprising” Intelligent Investor, who uses security analysis to find investments that are trading at a discount to the net asset value of the business. The Intelligent Investor lays out an in-depth framework for analyzing all types of investment opportunities so you can find stocks that fit the value investing criteria and are likely to provide you a long term return. Graham spares no detail in this section of The Intelligent Investor – and for that reason, this book marked a turning point in my own development as an investor.

By the way, The Intelligent Investor isn’t just some flashy new investment trend…

The Intelligent Investor was first published in 1949. And if you’re worried the book is a little out of date, you should know that a number of updates and new editions have come out. The 2006 edition of the book has a lot of additional commentary and explanatory notes from Wall Street Journal reporter Jason Zweig. So even though the fundamental lessons of The Intelligent Investor have stood the test of time on their own, this updated version makes the information even more topical for investing in today’s financial markets.

But let me tell you a little bit more…

The Best Part of The Intelligent Investor Book:

The Intelligent Investor covers a lot of ground – so it’s hard for me to touch on everything in this book review. The sections on security analysis are incredibly informative and filled with great examples and case studies. But that’s just the tip of the iceberg because…

In addition to the clear and focused value investment methodology The Intelligent Investor describes, Graham also provides a number of allegories and anecdotes that can help improve your internal investment decision making – and really boost your returns.

Let me tell you what I mean:

One of of my favorite parts of The Intelligent Investor is the story of Mr. Market. This is a simple allegory that describes stock market as an eccentric business partner who is always quoting you wildly fluctuating prices. Instead of being a servant to Mr. Market, you should aim to take advantage of his erratic fluctuations in security prices.

Along the same lines:

Graham recommends thinking of your stock market purchases as investments in private companies that you make for the long term because you see the value in the company. Like most of the advice in the book, Graham’s thoughts are simple but profound. They aren’t always easy to implement though – but it’s a good reminder that the hardest part of investing intelligently is maintaining our emotional composure.

It’s these easy to understand mental models that help make the quantitative lessons of The Intelligent Investor much more actionable and applicable for managing your own investment portfolio. There’s just one other thing I want to get out of the way…

The Intelligent Investor: One Word of Warning

The Intelligent Investor is not a day trading or swing trading book. This book is focused on tried and true investing and has nothing to do with technical analysis. So if you’re looking for a book that will help you find the next hot momentum stock, or a new tactic to play break-outs, you’re in for a sad surprise.

The Intelligent Investor is written for the fundamental investor who is interested in buying good companies at a discount to their tangible asset value. On the other hand, this Intelligent Investor framework can still work for longer term position traders. But it will help you focus only on trading those stocks that have a “margin of safety” and could also make sense as longer term holds.

The Intelligent Investor introduces you to an investment decision-making framework that can really make all the difference in your portfolio returns.

The Intelligent Investor – The Final Word:

The Intelligent Investor is a book that really stands out above most other stock trading books I’ve read. Graham was something of a revolutionary, and even though his book was published over 60 years ago, it has definitely stood the test of time. For example…

Although the Intelligent Investor methodology has been the focus of much criticism over the years, The Superinvestors of Graham & Doddsville continue to outperform any other investment approach. For this reason alone, I think The Intelligent Investor is worth buying on Amazon.

The Intelligent Investor Details and Video Book Review:

Author: Benjamin Graham
Pages: 640
Publisher: Harper Business

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