Handbook

Congratulations to you now, why? According to statistics, you are included in 3% of people reading instructions on the site. So then you will succeed.

Do you already have a brokerage account and now you need to determine how much you want to invest?
The following things need to be kept in mind:
1. When deciding how much money to invest, remember it shouldn’t be substantial amounts of money, and you shouldn’t spend all you got.
2. Start with a smaller amount at first, you can always allocate more.
3. Remember that the key to successful investments is time. Be prepared to invest for at least 5-10 years, and the longer, the better.
4. You are an investor, not a trader. It’s different people with a different psychology, and being an investor requires a different approach.

Read it? Get +10 to your karma.

So, you’ve decided how much you’re willing to invest. Great, what’s next?
1. Start getting to know your company. Get acquainted with the products or services it provides and read the latest news about it.
2. You are interested in the company, and you have an idea of how it works and would like to lead this company, or maybe you even have ideas for improving its business. Great, you’re ready to buy a part of this company, but take your time and write down its name or ticker symbol on a piece of paper.
3. Start choosing and researching the next company.
4. Write down on a piece of paper only those companies whose business model you understand or whose products (services) you use in your life.
5. At the first stage, you need to select at least 20 companies from 5 different sectors (industries), i.e. four companies in each sector.

All done? Get +10 to your karma.

Now you have a list of at least 20 companies, and you would like to own some of them:
1. Start full-scale research on the company. Our service will guide you through the process, step by step.

2. Look closely at the data in the following charts:

2.1. Whether revenue is growing or staying the same (deviations of up to +/- 5% are possible)

2.2. Whether the net profit is growing or staying the same

2.3. Look at operating cash flow and free cash flow     

2.4. Look at the company assets chart and most importantly its debt ratio

2.5. Etc…

We tried to make the charts intuitive, but the main point is that you should pay attention to those companies that show growth for at least the last three years. It’s even better when it shows positive dynamics over five years, and the perfect outcome is the continued growth for ten years

3. Compare the multiples of the company to the sector

4. Look at whether the company pays dividends and whether the dividend yield is high or not. Pay particular attention to it and keep an eye on those companies whose yield is greater than 3% over ten years, and the dividend has been growing for five years

5. Look at third-party analyst recommendations and the overall portfolio valuation from our analysts

6. Look at the fair value and identify at what level it currently is. Remember, you need to look for undervalued companies with dividend income

7. Select at least 10 of what you consider to be the best performing companies from 5 different sectors

For this job you get +10 to your karma.

You have selected at least 10 excellent companies from 5 different sectors:

1. You know the price of each share, and you know your budget, now it is easy to calculate the number of shares for each company you’re going to buy.

Remember, you allocate no more than 10% of your budget on each purchase.

2. Now you can open your broker’s trading terminal and start buying the shares on your list.

Don’t forget about possible commissions from your broker when making transactions.

Is done. Now we congratulate you, you have become an investor and the owner of a part of these 10 companies, keep +10 more to your karma.

Well, you did it, but now we want to add the following:

1. After buying shares, you need to keep an eye on the company, its development and performance. Remember that you have already bought a part of this company at your price, now you can’t influence the share price. Now it’s time for other people to buy and sell.

2. Be patient and do not panic, if the stock price suddenly dropped. It’s OK because the market always goes up and down. Besides, there is a lot of noise in the financial market that usually affects the stock price in the short term.

The only thing that matters is financial statements!

3. Track your stock portfolio. Try to review the portfolio when the share price has reached its fair value (at the time of the financial report release, we will recalculate and define a new fair value).

4. Try to benefit from companies’ dividends and buy shares of the same company or invest in new ones.

5. Remember that having 30 companies from different sectors is enough to diversify your portfolio. You increase risk when the number of companies is small and decrease it when you grow your portfolio. But remember, it affects the portfolio’s overall profitability.

6. Don’t invest in stocks of companies you don’t know.

Remember, unless you desire to buy the whole company, you don’t need to buy even a small part of it.

Well, for reading this, you still have +10 in karma.

1. Invest wisely and do not panic.
2. Don’t invest, if you expect to need your money in a month or a year.
3. Only buy shares in a company of which you want to become a part owner and that you already know from your experiences.
4. There is no perfect investment strategy.
5. You must be prepared for any stock market decline.
6. The stock market constantly goes up and down.
7. Always reinvest the profits you make.
8. Never take out a loan to invest.
9. Always keep a small amount of money in your account.
10. Try to choose undervalued companies, it will increase your chances.