Canadian Stock Market

Finding the best Canadian stocks to buy is a very important part of investing in the Canadian stock market. For a beginner, it can be a very challenging endeavour but with our help (and your dedication), you should be able to navigate through it with ease.

The Toronto Stock Exchange (TSX) has been known for its lackluster returns when compared to the high performing stock exchanges of the American market such as the New York Stock Exchange (NYSE) and NASDAQ. In order to get a good amount of returns on your investment in the Canadian stock market, you need to look for the best Canadian stocks across a number of industries. The downturn in the stock market because of COVID-19 has changed the definition of what qualifies as a top stock in the Canadian stock market. When all is going well and the market has been bullish for a decade, it’s easy to have a risk appetite but the moment we hit the quickest stock market crash in history and your investment account is suddenly down 40% in a matter of weeks, your risk appetite might suddenly become very less. Stocks that have outperformed by a large margin during the bull run, have suffered massively. These stocks are also known as growth stocks. The stocks which paid lesser, but a reliable number of dividends have performed relatively better. Therefore, if you want to invest in the Canadian stock market, you must have a mixture of both in your portfolio.

How to Buy Stocks in Canada?

Choose where to buy stocks from

A lot of stock market investors prefer working with a full-service stockbroker or buy stocks directly from a public company. However, the easiest way to buy and trade stocks is online. It can be carried out through the investment account at an online stockbroker. but the easiest way to buy stocks is online, through an investment account at an online stockbroker. Once your account is funded, you can buy the stock on the online broker’s website in a matter of minutes.

Choose the right stocks

This isn’t as simple as just buying the stocks that seem to be the most profitable. Warren Buffett famously said, “Buy into a company because you want to own it, not because you want the stock to go up.” If Warren Buffet gives some investment advice, you better listen to it.

Start with the company’s annual report — specifically management’s annual letter to shareholders. This will give you a better insight into what’s happening with the business and provide context for the numbers in the report.

Consider starting small by purchasing just a single share to get a feel for what it’s like to own individual stocks and whether you have the courage to see some difficult and volatile stock market periods through without going on anti-depressants. You can add to your position over time as you become braver, bolder, and wiser

Think long term

If you want to succeed in the long run, always maintain your perspective and don’t get perturbed by things beyond your control. What you can do instead is:

  • Get the best tools for the job.
  • Be mindful of brokerage fees. These can significantly eat into your returns.