So, how to avoid the risks of investing in the stock market? Here is the strategy that I apply. I only invest in big name companies that I strongly believe are not going to disappear (Facebook, Google, Enbridge, Royal Bank, Exxon, Tesla, Ford, GM, etc…). I have fair goals that I try to stick to without being greedy. So I watch these big name companies, and I wait for the stock price to drop for whatever reason. I don’t really care what the reason is because there is always a reason that makes the stock price drop and another reason that makes the stock price go up. It has always been like that, up and down, up and down. Sometimes, stock price drops without a reason, or a justifiable reason, and the media tries very hard to give a reason, but in reality we all know doesn’t make any sense. At the end of the day, if you look at the chart of a stock, you will see that it goes up then it goes down, goes up then goes down. So why not buy the stock when it goes down and sell it when it goes up? So this is the strategy I TRY to apply as best as I can. This is what allows me to make between 10% and 20% per year on my invested money.
So I’ll watch the charts of these companies and whenever the stock price drops significantly, I’ll put an order to buy. Then, two things can happen, the stock can either go back up or continue to go down. If it goes up, then great, I’ll try to sell at a 7% return or more. This usually takes me less than 3 months, and since I pick stocks that pay dividends, well while I am waiting for the stock price to go up, I am collecting dividends. The other scenario is the stock price can continue to go down, lower than what I bought it at. That is normal since it is impossible to guess the lowest price point possible of a stock, but I try to come close, by estimating and looking at the charts and past performance. If the stock goes lower than my purchase price by 10%, I’ll buy more of that stock. I’ll keep doing that if it continues to go down by more than 10%. Eventually, the stock will rebound go back up and that’s when I profit and sell. Then, I just keep repeating the process throughout the year, which leads to a 10% to 20% a year return. On my individual trades, I try to make at least 7% return. Also, per individual trade, I don’t put more than $2,000. So if my whole portfolio is $20,000, I won’t buy one stock with all my portfolio. I’ll break it up to diversify and to give myself opportunities to buy other stocks or the same stock at a better price.
How to trade on the stock market using questrade
Make 100k a year tax free
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How to open a Questrade account
how to place a trade
compare different brokerage accounts
watch proof of my my trades for the past 12 months -
Here are my stock tips and orders for the day
WATCH MY FIRST VIDEO ON QUESTRADE - https://youtu.be/q_72k1_Z6xw
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