Stock Trading Coaches
Billionaire Warren Buffet once said, "Watching paint dry isn't as exciting as watching a stock that's going nowhere." If you're looking for an investment that will provide a steadier return, get educated about the markets.
There are many trader coaches available to help you through this process, and we've found five of the best for you:
- Dan Zanger
- Wade Cook
- Jason Barrack
- Martin Forde
- Rick Fenton. Their blog posts cover topics such as how to invest in stocks, how to find investing mentors, and even how investors can lose money.
These coaches provide insight on a variety of investment topics including share trading, options trading, and dividend investing.
The YouTube channels address many issues facing investors. Here are some videos that may be helpful:
- How to Financial Plans for Dummies - Stock Trading: Investing for Beginners - What is the Stock Market? Part 1: The Basics - Day Trader Mistakes Part 3 - Fundamentals of Dividend Investing
Summary: The learning curve in investing could potentially have a big impact on your wealth. So, before you start buying stocks or making money in the stock market, check out all things stock dependent.
Diversification is a way to reduce your risk by spreading your wealth over a number of different stocks.
There are three main types of diversification: behavioral, economic, and market diversification.
Behavioral diversification occurs when the investor buys various stocks in different industries and will usually avoid the temptation to "trade from the hip" when an industry rebound occurs. Economic diversification means that you're looking for companies in various sectors such as technology, healthcare, and retail. This means that one sector's poor performance won't affect you significantly if another sector is doing well. Market diversification means that you avoid investing in a single sector or a few sectors, such as technology or energy.
When it comes to companies, analyze the company's financial statements. Compare the price-to-earnings ratio (P/E ratio) with other companies in the same industry. Analyze revenue and income, interest and dividend, and profit margins.
If you're looking for companies that have both recurring revenue (revenue that is generated over time) and free cash flow (cash received by the company each year), look at companies like Facebook (FB) or Google (GOOG).
Investors can get ideas for stocks to purchase from the many websites and blogs available. All this information is available online for free. For example, Yahoo Finance provides a variety of information including price quotes, news, portfolio tracking, and more. The Motley Fool is another good website providing stock market information free of charge.
Once you've decided to purchase a stock, check out SeekingAlpha.com or ValueInvestorsClub.com which are both great sources of up-to-date information on stocks. Both sites provide expert analysis from the perspective of both the short-term and long-term investor.
There are many different websites that provide stock information, even free. These websites may be helpful:
- Wall Street Oasis -
Summary: There are dozens of different types of stocks to consider when starting out on your own journey as an investor. A little time spent researching these stocks will help you find ones which align with your investing strategy.
Self-education is a good start, but if you'd like a more formal education, there are several ways to do this: Attending seminars and conferences on financial markets and stock trading or obtaining training from an independent trader coach .
Seminars provide an in-depth experience for the investor, if you choose to attend. For example, the online trading academy offered by the Canadian Securities Institute provides investors with training on how to trade stocks. The cost is $7,500 CAD and includes lectures, workshops, booklets, and many other resources.
Coaches are another good option if you want to learn more about investing. Many coaches provide training at an hourly rate or through coaching packages.
Regardless of which option you choose, remember that getting educated on this topic will put you ahead of the game when it comes to investing success.
Summary: Getting a formal education can be very helpful for anyone considering investing as a career or just as a hobby.
Learn about the risks involved in investing by familiarizing yourself with the three main types of risks: market risk, company risk, and interest rate risk.
Market Risk is the risk of an investment to lose value due to overall market fluctuations. It is also known as systematic or undiversifiable risk. In order to minimize this type of risk, you must diversify your portfolio.
Company Risk results from a certain company's failure to live up to its expected performance. You can mitigate this type of risk by diversifying your portfolio and investing in companies within various sectors (e.g., technology, healthcare, and retail). Interest Rate Risk occurs when you have borrowed money for a period of time at a certain interest rate (i.e., a CD) and then later decide to invest that money into another investment, but the interest rates are higher.
There are a few ways you can minimize risk when investing:
- Beneficiary Designation: set up beneficiary designations for your investments. This allows your named beneficiaries to receive the value of your investments in the event of your death. - Tax Loss Selling: sell stocks with losses in order to offset capital gains that may have occurred during the same year. - Keep an Emergency Fund: you never know when an emergency situation may occur where you have to pull out all of your investments in a rush.
Summary: Determining the right investing strategy for you is a big part of investing success. Choosing the right financial instrument and finding a good, risk-free investment can make all the difference.
Choosing a Financial Instrument
There are two main types of investments: bonds and stocks. Both have their own unique characteristics. Here are some tips to help you decide which investment type to choose when starting out:
Bond Investing is an ideal way to earn interest on your money. This provides long-term growth, but also comes with some risks. Interest rates tend to remain flat when compared to stocks when they're at their highs and lows in value throughout the market cycle.
Conclusion: If you're looking for more secure, steady growth with some risk of loss, bonds might be a good choice.
Prospective investors should consider the following factors when choosing a stock:
- Sector: Choose a sector that aligns with your interests. For example, if you like technology then invest in technology companies. - Price-to-Earnings (PE): The PE is used to compare stocks. A low PE means that the stock is relatively less expensive than others in the same industry. This may be an indication of undervaluation or overvaluation for your particular stock.
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Stock Trading Coaches