Stock Investing for Dummies Quotes

“Emotional risk also occurs when investors are drawn to bad investment choices just because they sound good, are popular, or are pushed by family or friends.”
― Paul Mladjenovic, Stock Investing For Dummies

“Lack of knowledge constitutes the greatest risk for new investors, so diminishing that risk starts with gaining knowledge.”
― Paul Mladjenovic, Stock Investing For Dummies

“When figuring out what to do in the investment world, most professionals use one of two basic approaches: fundamental analysis and technical analysis (many use some combination of the two).”
― Paul Mladjenovic, Stock Investing for Dummies

“Monitor your stocks. Hold on to stocks that continue to have growth potential, and sell those stocks with declining prospects.”
― Paul Mladjenovic, Stock Investing for Dummies

“another indicator of how well the company is doing is to see whether management is buying stock in the company as well.”
― Paul Mladjenovic, Stock Investing for Dummies

“The bottom line is that growth is much easier to achieve when you seek solid, value-oriented companies in growing industries.”
― Paul Mladjenovic, Stock Investing for Dummies

“If you’re the type of investor who has enough time to let somewhat risky stocks trend upward or who has enough money so that a loss won’t devastate you financially, then growth stocks are definitely for you.”
― Paul Mladjenovic, Stock Investing for Dummies

“Good investment selection means looking at several sources before you decide on a stock.”
― Paul Mladjenovic, Stock Investing for Dummies

“As a general rule, the P/E should be 10 to 20 for large cap or income stocks. For growth stocks, a P/E no greater than 30 to 40 is preferable.”
― Paul Mladjenovic, Stock Investing for Dummies

“Check out what’s happening when you hear about heavier-than-usual volume (especially if you already own the stock).”
― Paul Mladjenovic, Stock Investing for Dummies

“To stay in business, companies had to do the logical thing — cut expenses. What’s usually the biggest expense for companies? People! Many companies started laying off employees. As a result, consumer spending dropped further because more people were either laid off or had second thoughts about their own job security.”
― Paul Mladjenovic, Stock Investing for Dummies

“nothing (and I mean nothing!) has a greater effect on investing and economics than government.”
― Paul Mladjenovic, Stock Investing for Dummies

“Before you buy, you need to know that the company you’re investing in is Financially sound and growing Offering products and/or services that are in demand by consumers In a strong and growing industry (and general economy)”
― Paul Mladjenovic, Stock Investing for Dummies

“Some ETFs cover industries such as food and beverage, water, energy, and other things that people will keep buying no matter how good or bad the economy is.”
― Paul Mladjenovic, Stock Investing for Dummies

“For investors who are comfortable with their own choices and do their due diligence, a winning stock is a better (albeit more aggressive) way to go. For those investors who want to make their own choices but aren’t that confident about picking winning stocks, an ETF is definitely a better way to go.”
― Paul Mladjenovic, Stock Investing for Dummies

“conservative investors are better off at 5 percent or less.”
― Paul Mladjenovic, Stock Investing for Dummies

“Beta is a statistical measure that attempts to give the investor a clue as to how volatile a stock may be.”
― Paul Mladjenovic, Stock Investing for Dummies

“If international investing interests you and you see it as a good way to be more diversified (beyond the U.S. stock market), then consider exchange-traded funds (ETFs) as a convenient way to do it.”
― Paul Mladjenovic, Stock Investing for Dummies

“Supply and demand is the nature of market risk.”
― Paul Mladjenovic, Stock Investing for Dummies

“A healthy bottom line means that a company is making money. And if a company is making money, then you can make money by investing in its stock.”
― Paul Mladjenovic, Stock Investing for Dummies

“If your purpose for investing in stocks is to create income, you need to choose stocks that pay dividends.”
― Paul Mladjenovic, Stock Investing for Dummies

“In fact, if you examine any ten-year period over the past 50 years, you see that stocks beat out other financial investments (such as bonds or bank investments) in almost every period when measured by total return”
― Paul Mladjenovic, Stock Investing for Dummies

“Every person has short-term goals. Some are modest, such as setting aside money for a vacation next month or paying for medical bills. Other short-term goals are more ambitious, such as accruing funds for a down payment to purchase a new home within six months. Whatever the expense or purchase, you need a predictable accumulation of cash soon. If this sounds like your situation, stay away from the stock market!”
― Paul Mladjenovic, Stock Investing for Dummies

“What should you do? Become an investor with a time horizon greater than one year (the emphasis is on “greater”). Give your investments time to grow.”
― Paul Mladjenovic, Stock Investing for Dummies

“Stocks generally aren’t suitable for short-term investing goals because stock prices can behave irrationally in a short period of time.”
― Paul Mladjenovic, Stock Investing for Dummies

“Long-term goals refer to projects or financial goals that need funding five or more years from now. Intermediate-term goals refer to financial goals that need funding two to five years from now. Short-term goals need funding less than two years from now.”
― Paul Mladjenovic, Stock Investing for Dummies

“A cash flow statement is simple to calculate because you can easily track what goes in and what goes out. Income statements are a little different (especially for businesses) because they take into account things that aren’t technically cash flow (such as depreciation or amortization).”
― Paul Mladjenovic, Stock Investing for Dummies

“Maintaining a positive cash flow (more money coming in than going out) helps you increase your net worth.”
― Paul Mladjenovic, Stock Investing for Dummies

“Make a diligent effort to control and reduce your debt; otherwise, the debt can become too burdensome.”
― Paul Mladjenovic, Stock Investing for Dummies

“A balance sheet is simply a list of your assets, your liabilities, and what each item is currently worth so you can arrive at your net worth. Your net worth is total assets minus total liabilities.”
― Paul Mladjenovic, Stock Investing for Dummies