Canadian Stock Investing Strategy – Find, Track and Trade Canadian Stocks
This video covers ONE way to find stocks trading at an attractive price. This video covers the first step in the process: finding the stock. Once we have found a stock, we then want to look at its financial health (not covered in this video). Before buying anything we want to make sure earnings are stable, growing, or likely only seeing a temporary dip if earnings have been dropping. We want to make sure the company is typically profitable, can afford to pay any dividends and can also afford to pay their short-term obligations. While we may end up with 100 stocks on our list, maybe only 20 of those stocks will pass our financial/fundamental analysis, and then maybe only a handful of those will reach a price we are comfortable with.
Go through the process discussed in the video once every couple weeks (or once a month), screening for new stocks to add to your list, and analyzing stocks currently on your list. Only buy stocks below the “buy zone” price. Know the dividend yield and potential dividend yield of all stocks on your list, as well where you plan to exit each stock on your list. Put a stock of interest on your list even if it is a long way away from the entry price you want.
*Note: you put 1 share in the portfolio just so it tracks the stock, but it has nothing to with your actual position size on a trade. Position size will be discussed in a future video.
This video looks at how to screen for Canadian stocks which are trading at value prices and/or offering a nice dividend with great long-term upside potential. Unfortunately, I can’t go through the whole strategy in 30 mins, but this provides an overview of some things to look for and how to set up a list of potential investments. This way you always have list of Canadian stocks you want to buy if they reach the price you want to buy at (as determined by the strategy).