Top 3 Tips for Successful Investing

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The beginning of the new year is a great time to plan for the future. Plan on how you will be able to earn more passive income this year than last year. Here are 3 tips to help you earn more:

1. Remain Focused Ignore all the media noise about debt, high unemployment, and downturns. Do not jump from one strategy to the next. Stay focused on investing in quality dividend paying companies when they are undervalued (priced low).

2. Patience Investing requires patience, in the short term stock prices go up and down, in the long-term history has shown that value stocks perform very well. This is what I teach in the Simply Investing course: any money you require in less than 5 years (to buy a house, car, or go on a trip) should not be invested in stocks. Investing in stocks requires a long-term outlook.

3. Buy Low Remember the saying "buy low, sell high"? Buy quality stocks when they are priced low (undervalued), this way you can maximize your profit. There is no point in buying any investment (mutual fund, stock, index fund, real estate) when it is priced high, you will never make any money on it or it will take decades to realize a small profit. How do you know when a stock is undervalued? Watch my video where I explain how to determine when a stock is priced low.

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10 comments

Miss T @ Prairie Eco-Thrifter Feb 7, 2012 04:22am

I think patience is so important. In fact to me it is fundamental to various aspects of our lives. Investing like everything else is a long term project that takes time to build. We shouldn't be looking for the quick fix when it comes to investing our money.

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Kanwal Sarai Feb 7, 2012 04:42pm

Thanks for visiting Miss T!

You are absolutely right, patience is key, in fact I should have put it first on my list. :)

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American Debt Project Feb 10, 2012 12:32pm

Tell me 'bout it! I have a hard time staying focused on anything. I'm becoming much more diligent in my finances though. This was a good review!

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Kanwal Sarai Feb 11, 2012 07:46am

Thanks for the kind words American Debt Project! It is a challenge to remain focused and have the patience to let your investment s grow over time.

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My Own Advisor Feb 19, 2012 08:12am

Patience is absolutely critical, in my opinion, the most important factor of an investor above all.

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Kanwal Sarai Feb 19, 2012 12:24pm

Thanks for dropping by MOA!

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Kanwal Sarai Jul 11, 2019 05:22am
Anytime you take money out of your RRSP it is considered income and you will be taxed on that income based on your income tax rate. To avoid this tax, it is preferable to open an RRSP Trading account, then you can transfer money from your traditional RRSP and move it into your RRSP Trading account tax free (since the transfer is from one RRSP account to another RRSP account). From your RRSP Trading account you can then buy/sell stocks.
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Dina Konstantopoulos Mar 1, 2019 09:12am
Will you be penalized for taking money from your RRSP and putting it into a stock? If you arent taking the money out I am assuming no right?>
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Hi Kanwal, my company allow me to contribute 10% of my biweekly salary into RRSP or stock option so what should i do whether to go for 50- 50 or contribute all into RRSP Please assit
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Kanwal Sarai Nov 22, 2018 11:17am
Amanpreet, Everyone's personal financial situation is different, and without knowing your details, it is hard for me to suggest the best course of action. However the company matching contribution is basically free money, therefore it would be wise to contribute enough in order to get the maximum company contribution.
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