If there is one term over-used when talking about making investments in the stock market I would think that term would be: buy low, sell high.
Buy low? Sell high? How low is low and how high is high? I like the term buy low, sell dear, much better! But better still are the terms buy and hold, and dollar-cost-averaging (buying the same stock at different prices through the years). For within those two stock market terms, in my opinion, lies the path for successful stock market investments.
For me, if a buy and hold strategy is used, then I want to be paid for using it, and if a dollar-cost-averaging strategy is used, I don't want to be charged commission fees for the future dollar-cost-averaging purchases.
Therefore, in order to be paid for the buy and hold strategy the companies purchased must pay me every 3 months. If a company cannot pay me every 3 months for buying and holding their stock, then I don't want to buy and hold their stock. The payment is called a dividend, and the dividend varies with each buy and hold company owned. This buy and hold strategy co-exist with dollar-cost-averaging. The monies paid by the company every quarter through the buy and hold strategy is used to purchase more shares of their company. The company does this commission-free, and is automatic every quarter through the years of ownership.
The brokerage houses of today, to compete with most dividend paying companies, now offer the same commission-free service when having dividends rolled back into a company's stock. Only you are going to have to tell them you want the dividends rolled back into the stock (sometimes you have to tell them twice, since it is not one of their high priorities; after all, they are in the commission business).
To read the PREFACE from the book 'The Stockopoly Plan - Investing for Retirement.' Visit: www.thestockopolyplan.com
Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan ? Investing for Retirement; published by American-Book Publishing. You can invest in the book at www.thestockopolyplan.com
You have permission to publish this article either electronically or in print, free of charge, as long as the author bylines are included. A courtesy copy of your publication would be appreciated. Please email to mailto:charles@thestockopolyplan.com
house refresh service Lincolnshire ..∙ Make every investment in the stock market a long-term... Read More
As an investor you will want to check out any... Read More
When purchasing mutual funds we are cautioned to read the... Read More
With the stock market stubbornly refusing to settle down and... Read More
One of the great "secrets" of successful people is discipline... Read More
If you don't know where you are going any road... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
It has often been said that there is only two... Read More
What can I expect to make my first year of... Read More
I know there are a lot of you out there... Read More
Before we get into all the good news out there,... Read More
The trading method you employ to approach the stock market... Read More
I read a comment by a forum member on another... Read More
There are so many kinds of work that needs to... Read More
Because you don't feel too sure about which stock or... Read More
Now where have I heard that before? I know. It... Read More
Economists know more about how the fragments of society work... Read More
If you haven't heard of the technical indicator with the... Read More
When an individual investor wants to roll up his sleeves... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
Picture one of those clubs where only the real heavyweights... Read More
If there is one term over-used when talking about making... Read More
That sounds like good advice doesn't it? Don't lose all... Read More
I am taking the time to help others learn the... Read More
I often hear from people, "I don't trade. I invest.... Read More
licensed cleaning services Lake Forest ..At some time in your life you have been on... Read More
You probably have been told that options are risky. Even... Read More
Refuse is a serious issue in any society, about as... Read More
Even if you don't own any of their stock or... Read More
I read a comment by a forum member on another... Read More
The bear market that showed up at the end of... Read More
Invest in the stock market for the RIGHT reason, using... Read More
This is the continuing story of our two imaginary traders,... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
For weeks, no, months we have been bombarded with nothing... Read More
Well, not really. What I mean is I don't mind... Read More
We need a rabbit!This was a pretty horrible week for... Read More
When purchasing mutual funds we are cautioned to read the... Read More
In a previously written article, we expanded the use of... Read More
1. Do not spread your money too thin.My friend has... Read More
∙ Make every investment in the stock market a long-term... Read More
Most advisors will tell you they can beat the market.... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
When it comes to stock market trading it PAYS to... Read More
Time to look back2004 is over, now we are in... Read More
If you go to Haiti or other places in the... Read More
Do you have a nest egg? You know, a place... Read More
One of the most believed bits of conventional wisdom from... Read More
For the last 12 years we have seen the Japanese... Read More
What! Me worry?Many of you remember the cover of MAD... Read More
Stocks & Mutual Fund |