From counting your savings to counting sheep.

Learning how to trade in stocks is a useful skill to have. While investing in stocks can provide opportunities to achieve good returns, there may be some risk involved. 

Here are a few simple steps to get you on your way to becoming a pro.

First, set your goals and understand why you’d like to invest. What do your short- and long-term goals look like and what does the timeframe look like? Next, get familiar with the basics like Charts to better understand when to buy and sell depending on whether the stock price is going up or down. You should also research the companies you plan to invest in. Analyze their balance sheets and cash flows to ensure they are a worthwhile investment. 

You’ll also want to understand how much you can comfortably afford to invest. Take some time to understand your time horizon and risk tolerance, such as how long you’re willing to invest to achieve your financial goal and how comfortable you are with the potential of losing money for a chance of higher rewards. 

Finally, you would need to open a brokerage account, whether that’s online with Scotia iTRADE or managed through one of our investment advisors.  

Remember to avoid emotional trading during market swings. There’s no such thing as a perfect investing record. Over time, you’ll get a better understanding of the market and trade with confidence.

Like a TFSA, an RRSP is an account that helps you save for retirement, whether through lump sum or automated pre-authorized contributions.

While there’s a limit to how much you can contribute, with an RRSP, you don’t have to pay taxes on the money you put in today or any investment income earned until you withdraw your money in retirement.

The upside to this is that when you’re retired, you could potentially be in a lower tax bracket and pay fewer taxes.

Another benefit is that you can use the funds in your RRSP to buy your first home or pay for education for you, your spouse, or your common-law partner. And there’s flexibility. You can use your RRSP as a vehicle for different investments, such as cash, mutual funds, and GICs.

A Tax-Free Savings Account (TFSA) is an all-purpose investment account that offers the flexibility to save for many goals in one account. 

With an annual contribution rate of $6,000 for 2022, your savings grow over time tax-free, and you can withdraw your money whenever you need it for any purpose. You can also put back the amount you withdrew into your TFSA.  

Mutual funds are a cost-effective and convenient way for you to spread your money across different investments and provide you with the peace of mind that it will be handled by a professional portfolio manager. 

Mutual funds pool money from different investors to invest in stocks and bonds. Supported by a team of analysts, the portfolio manager’s primary goal is to identify investment opportunities that help achieve the fund’s investment objectives, such as long-term growth, regular income, or a combination of the two. 

It’s a great option for those who don’t have the time or expertise to micro-manage their investments.

As we get older, our lives get more complex. We find ourselves planning for a life’s different milestones, such as the purchase of a home, a child’s education, a parent’s elder care, or a possible career change.

Additional complexities, such as a second marriage, unique living arrangements, a changing job market, or even a global pandemic, can make it harder to manage your finances.

The key to successful investing is being informed and having a well-constructed plan combined with expert advice. A financial advisor can help you evaluate your overall financial situation and build a financial plan tailored to your goals and risk tolerance.

With an advisor, you’ll better understand the potential risks and benefits of products, develop a greater savings discipline, stay on track with your goals, and gain deeper insights into how your investments have performed. You’ll work together to determine which investments work best for your portfolio.

And advice pays off overtime. Research shows that households that received financial advice for 15 years or more could increase their assets by 290% compared to those without a financial advisor. They also accumulate 3.9x more assets than non-advised households after 15 years.