INTRODUCTION charge and find out a lot more about what they’re doing when they conserve and invest their hard-earned money. Many financiers do not know where to turn, whom to trust, or what they must stop doing in order to attain real exceptional investment performance. You do not have to offer your cash to a Bernie Madoff, who’ll take it but won’t tell you precisely what he’s making with it.

At the minimum, you require to learn and comprehend well the sound concepts, proven guidelines and methods that can protect and build your financial investment portfolio with time. Half of all Americans conserve and invest; now it’s time to find out to do it intelligently with important knowledge. When I started investing, I made the majority of the same errors you’ve probably made.

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

Many don’t. You pay far less attention to a business’s book value, dividends, or PE ratiowhich for the last 100 years have had little predictive worth in spotting America’s most successful companiesand focus rather on important historically proven factors such as strong earnings and sales development, rate and volume action, and whether the company is the top revenue leader in its field with an exceptional new product.

All these smart actions are absolutely contrary to human nature! In truth, the stock exchange is humanity and crowd psychology on everyday display screen, plus the olden law of supply and demand at work. Since these 2 aspects remain the same in time, it is impressive but true that chart patterns are simply the very same today as they were 50 years ago or 100 years earlier.

All of these stocks had spellbinding price relocations. Charts plus incomes will help you tell the very best stocks and basic markets from the weaker, riskier stocks and markets that you must avoid altogether. That’s why I put all these outstanding chart examples in Chapter 1, with notes marked on each chart to assist you find out an ability that might just change your entire life and let you live better and far smarter.