There are hundreds of stocks on the Toronto Stock Exchange (TSX). No one has the time to research and read up on all of them individually. Even the experts use newsletters and reports to learn about investments. So can you. How?
- Look for high-quality reports and websites
- Some of this information will be free. In other cases, you may have to pay a fee.
Five tips to help you research investments
- Some of the advice you read will be sound. Some of it won't. How do you tell?
- Know your sources: Who is the author? Are they trying to hide their identity? You should know about the source and their expertise.
- Check their track record: Has the source ever been in trouble with your provincial securities commission? Have they ever been paid to recommend a stock? Do they work for a company that sells investments? Think twice about using sources that hide this information or put it in tiny, hard-to-read print.
- Don't believe everything you read: Avoid hot tips. For example, if a report or website is boasting about annual returns over 25%, watch out. The results you see may have been produced over a very short period of time. They may not continue.
- Stay away from high-risk advice: Beware of anyone who tells that you're guaranteed to make a lot of money with no risk. All investments have some risk. Also, avoid smaller stocks that don't trade often and aren't well known. It may be harder to sell and get your money back out.
Keep what you read in perspective: Many newsletters and websites promote a certain investment approach. They won't tell you about other options. Related contentLearn how to spot a hidden bias.
Where can I learn more about stocks, mutual funds and the stock market?
: The TSX site provides up-to-the-minute information about stocks and companies listed on the TSX, plus historical market data. - Free.
: Lets you browse Canadian and US stock information and business news headlines. For a fee, you can sign up for real-time stock quotes. - Free and fee.
Remember: Information is an investor's best friend
Make sure you make use of all the great sources that are available to you.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.