General Investing Advice


Collection of classic Cabot investing tips to help you become a wiser and wealthier investor.

Listen to Your Stocks  4/23/08
A big earnings gap lower, especially after a stock has enjoyed a huge advance, often spells the end for a stock's up cycle.

Three Phases of a Growth Stock: Romance, Transition and Reality  3/31/08
Timothy Lutts uses Crocs (CROX) to illustrate the concept of a growth stock's three phases.

Practice Patience Early in a New Bull Market  3/29/08
Considering the risk that you might buy at a false bottom, we don't think the risk is worth the reward.

Tips on Handling Market Stress  3/15/08
Having a system will help you manage market stress especially when the market's most volatile.

The Market Wants to Take Your Money Away; You Need a System to Prevent It  3/10/08
Here are three ways the market is actively trying to take your money and what you can do about it.

While You're Waiting for the Market to Turn  2/21/08
Here's a couple of things you can do while you're waiting for the market to make up its mind which way to hop.

How to Invest During a Recession 1/17/08
Timothy Lutts is watching charts and finding bargains.

On Improving Your Personal Side of the Investing Equation
Eight ideas to help you improve your personal moneymaking habits from "New Market Wizard" by Jack Schwager.

Factors for Successful Trading
Two key factors—hard work, and staying focused on what can be controlled—are key to making big money in the market.

SNaC to Keep Your Portfolio in Shape
SNaC stands for Story, Numbers and Chart, and it's the method Paul Goodwin uses to pick stocks for the Cabot China & Emerging Markets Report.

Plan for Risk...Don't Avoid It
Successful investors always consider risk when analyzing their portfolio, adhering to rules like cutting losses short and diversification.

Be Ready to Buy when Market Leading Stocks are on Sale
The worse the economic chaos gets…and the lower the market goes…the better you like it.

On Selling Big Winners
What feels good to most investors is holding on to a big winner...and what feels bad is selling a big winner—but there are times when that's exactly what you should do.

Managing Risk during Bear Markets
The secret to surviving the bear market, of course, is adapting.

What to do when Sellers are in Control of the Market
When the sellers remain in control, this Q&A will help you decide what to do.

Why Recession Really Doesn't Matter to Investors
Should you wait until the recession ends before you invest? No—because all stocks trade on expectations of the future.

Free Yourself from Why
The best investors generally free themselves from the question of why a stock or the market is going up or down.

Keeping Your Balance during Market Turbulence
If you're an investor, you're worried. That's what you get paid for. Here's something to keep in mind during turbulent times.

Year-End Review helps Set Goals for Next Year
Opening your eyes to some of your investing strengths and weaknesses will help you make more money next year.

On Keeping Watch Over Your Stocks
Checking your stocks often probably doesn't do any harm, but it does reveal something about you as an investor.

Investing Basics: Keep Your Eye on the Ball
There’s a reason that the same old rules are still the rules. Keep it simple. Keep your eye on the ball. And you’ll come up a winner.

Growth or Value Investor? Depends on your Investing Temperament
Which strategies are best for you? It’s all a matter of temperament.

Are you a Growth Investor or Value Investor?
The most important thing for you to understand about investing in stocks is yourself.

Know Thyself. Match your Investing System to your Personality
What really matters is matching the system's pros and cons with your own personality.

Portfolio Management: Quality over Quantity
When managing your portfolio of growth stocks, it pays to be concentrated in the market's leaders.

Just Sit Tight during Corrections
Sit tight. Hold onto your winners. Sell your losers.

Stock Prices: Important and Nothing
It's value and opportunity, not the price of the stock. And then there's December...

Follow Your System
Your first task is to clearly identify your system; your second, and most difficult, is to follow that system.

Averaging up
Like any tool, averaging up can be dangerous if misused.

Fundamental or Technical Analysis: The Perils of Purity
Following either of these investing styles exclusively can be risky for your total portfolio.

Wise Words from Warren’s Wife: Don’t get too attached to the outcome
People have been trying to follow Warren Buffett’s investing advice for years but maybe his wife’s advice can also be helpful. 

A Stock, Like Love, Thrives on Romance and Dies on Statistics
If the RP line falters over a period of weeks, you’ll know the romance has ended.

Markets Are Never Wrong; Opinions Are
A rewarding strategy is to identify the current trend and stay with it as long as it persists.

Do You Want to Feel Right or Make Money?
If you really want to make money, you have to discard your desire to feel right all of the time.

Run, Sheep, Run
By watching investor sentiment and adjusting your investments accordingly, your investment results are sure to improve.

Three Changes for Improved Investing
A successful small change is much better for you (both financially and emotionally) than a big change that you can't make happen.
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