Investing Truths: An Inside Look at How 5 Investors Research

We turned to five RBC Direct Investing clients to share their views on research when it comes to making investing decisions. Here's what they had to say:

Antonio (Toni) G. "Do the market research"

About: 30 years old, father of four

Occupation: CEO of a firm that manufactures steel enclosures and other security-related equipment

How do you research?

"I would say I do some technical research and I'll look at company websites and a few blogs. I'll compose the data and look for the right opportunity to get in. I'll read news articles as well."

What do you wish you had known starting out that you know now?

"I'd tell myself to do a little more market research. Just to do more due diligence on certain stocks before I got into them."

Do your friends ever come to you for ideas or advice about investing?

"They ask, but I generally don't give anything. It's important to do your own research and I don't want to be blamed at the end of the day!"

Cyrus W. "Understand the why"

About: Married father of two from Edmonton

Occupation: Information Technology

How do you research?

"I get research through articles, friends and my community. I would always say do the research. If you don't know the financials, try and get some help. I read analyst reports. I find them relevant, but some don't say a whole lot of anything. Some analysts will go through and give a lot of analysis, but they won't draw a conclusion at the end. I find that challenging."

"If I have a stock that's not doing well, I'll turn to the media. If it's something happening with the company, I might cut ties right away, but if it's the economy I probably tend to hold on longer than I should. But I'm a believer in the companies that I buy into."

"If a stock is going up, that's great. But I want to understand the 'why.' Same thing if it's going down. Knowing the 'why' keeps me from having a gut reaction and potentially making a wrong decision."

Myan P. "Keep it simple"

About: 31 years old

Occupation: Data coordinator

How do you research?

"I like to use the screeners on Direct Investing. I'll look at the stock quote and the performance, specifically over the last five to 10 years. I'll also compare it to other stocks in the same industry to see how they compare. I prefer to see it on the rise, with proven performance. I'll also look for a recent dip with the hopes that it will be working itself back up. I find parsing through the news is too much; I like to keep my research relatively simple." Find out more about MyAn's Investing Truths here.

Luke Van V. "My gut is always telling me the way to go"

About: 29 years old

Occupation: Electrician

How do you research?

"There are so many great tools and resources out there, even if you're just starting with a passion or a desire to learn more. I look at MoneySense and Financial Times. On the Direct Investing site, I like the Daily Commentary, Quarterly Outlook and other research tools. It gives you a sense of what the professionals are saying."

What do you follow more: research or gut?

"They kind of go hand in hand. A lot of it now for me is about asset allocation. I'm looking for, and following, a plan. So I think that's the research side. But my gut is always telling me the way to go, too."

Do you ever talk with friends and family about investing?

"I have a couple friends from school and we'll talk about strategies and things like that. I wouldn't say it's advice, but more just general conversation."

Alex W. "Stick with it and invest rationally"

About: 27 years old

Occupation: Medical Research

When you were starting out, how did you research?

"I did a lot of research on my own and then would jump in. I talked with my dad and used a bunch of internet resources to figure out what I wanted to do. My dad worked in banking, so I trust his opinions when it comes to finance and investing. I did a lot of my own research using books and other resources."

Do you ever question your strategy or choices?

"I think it's always important to understand the risks and commit to a plan, which I acknowledge is easier said than done. As long as you always understand that you could potentially lose some money. But always I think stick with it and invest rationally, rather than emotionally."

Any go-to resources?

"I'll read blogs — especially ones that have a community with diverse investing opinions — and articles about personal finance. Everyone has heard investment advice from someone, but I think it's important for people to research for themselves."

Any lessons you'd pass on to newer investors?

"Stay rational, don't make emotional decisions when investing. Be well-educated. Seek out resources and be confident in your decisions. Understand why you're making them and why they're the right choice for you."

All individuals mentioned are RBC Direct Investing clients and have been compensated for sharing their story.