BMO InvestorLine: Avoid Common Investing Errors by Planning Carefully
TORONTO, ONTARIO -- (Marketwire) -- 01/21/13 -- According to BMO
InvestorLine, the New Year is a perfect time for Canadians to review
their investing habits to ensure they are avoiding common mistakes
when building their portfolios.
"People often get caught up in the idea of playing the market instead
of taking the time to educate themselves on the appropriate
strategies that match their investment objectives", said Viki
Lazaris, President & CEO, BMO InvestorLine. "Avoid major investing
errors by planning carefully and knowing where and how you will
invest throughout the year. This will keep your portfolio well
balanced and can help you build towards saving for your short- and
long-term financial goals."
BMO InvestorLine encourages investors to consider the following:
-- Goals and Objectives: Different goals require different types of
investments. Identify your objectives before choosing your asset mix.
More liquid investments can help save for short-term goals such as
buying a car, while growth-oriented investments that have the potential
to appreciate over a long period of time are more appropriate for long-
term goals such as retirement.
-- Be Selective: Choose investments that strategically build upon your
existing portfolio and balance risk and return. Consider holding more
than one of each investment type and having a mix of both conservative
and aggressive investments. For example, for your stock holdings, select
10 to 30 stocks that cover a range of industries, such as financials,
utilities, technology and healthcare. Diversification will make your
portfolio less susceptible to market fluctuations.
-- Avoid the Hype: Do not fall prey to one of the most common investing
mistakes by chasing performance and rumours. There is no guarantee a
stock will continue to appreciate; by the time you buy into a "hot"
sector, stock values may have already reached their peak. Read below the
headlines and be sure to do your research beforehand to help ensure your
investment choices are being made for the right reasons.
-- Foresight is Key: Having a plan for selling investments is jus
important as having a plan for buying them. Consider setting up specific
criteria ahead of time to avoid selling at an inopportune time. For
example, decide that you will sell an investment if it loses or gains a
certain percentage, after a designated period of time or if an
investment's performance falls below a benchmark.
-- Timing Matters: Although it is wise to have criteria for selling an
investment when it is not performing as expected, it is also important
to avoid overreacting when the overall markets experience a downturn.
Re-evaluate your investments periodically to make sure that they are on
track to meet your short- and long-term goals and best suited for you
and the market conditions. If you have a long investing time horizon,
waiting for the market to rebound instead of selling could be beneficial
over the long run.
To help investors address some of the factors above, BMO InvestorLine
recently introduced adviceDirect., the first service of its kind in
Canada that puts investors in control by providing specific
investment recommendations to help them manage their portfolios.
adviceDirect is designed for those who want to invest independently
through an online brokerage, but require advice when making
"The New Year is an ideal time to review your portfolio and
adviceDirect is a great tool to help you do so", said Ms. Lazaris.
"What's truly unique about adviceDirect is that it provides
continuous portfolio monitoring and notifications. It will advise you
when your portfolio requires attention related to your asset
allocation, level of diversification, poorly rated equities and if
your portfolio has more risk then your investor profile allows. It is
like having your own virtual investment advisor. Not only do we alert
you, but we provide recommendations and advice on where to correct
these issues so your portfolio is aligned to your investment
For more information about online investing and adviceDirect, please
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About BMO InvestorLine
BMO InvestorLine is an online investing service that provides clients
with two ways to invest online. Clients can choose from BMO
InvestorLine's top ranked Self-Directed service that provides tools
to help investors make independent decisions on how to invest. BMO
InvestorLine's other service, adviceDirect(TM) provides investors
with online advice and investment recommendations for their
portfolios. Clients have access to trading, quotes and account
information 24 hours a day through a website or Automated Telephone
Trading. BMO InvestorLine also provides users with third party
research, along with leading edge tools that are informative and easy
to use. As an all-in-one investment source, it is a constantly
evolving, cost-efficient platform that is fully compatible with
BMO InvestorLine Inc. and BMO Ligne D'action Inc. provide this
commentary to clients for informational purposes only. The
information contained herein is based on sources that we believe to
be reliable, but is not guaranteed by us, may be incomplete or may
change without notice. The comments included in this document are
general in nature, and professional advice regarding an individual's
particular position should be obtained.
An adviceDirect account is a non-discretionary fee based account
which offers investment recommendations. adviceDirect does not
provide portfolio management by a portfolio manager. The client makes
their own investment decisions and manages their own investment
portfolio. adviceDirect does not offer discretionary, managed
BMO InvestorLine Inc. is a member of BMO Financial Group.
(R) Registered trade-mark of Bank of Montreal, used under licence.
BMO InvestorLine Inc. is a wholly owned subsidiary of Bank of
Montreal Holdings Inc. Member - Canadian Investor Protection Fund and
Rachael McKay, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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