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
family-safe home cleaners Morton Grove ..For years investors have been taught to look into the... Read More
The Law of Chaos is the theory of random unpredictable... Read More
One of the great "secrets" of successful people is discipline... Read More
To become a successful trader you must have some kind... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Because there are so many stocks that are NOT paying... Read More
Before you embark upon a journey of trading stocks or... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
There are many important things you need to know to... Read More
Where is the beef? Or maybe it should be where... Read More
Intervention. Now don't let that big word scare you. The... Read More
One of the things people are always asking me is... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
All of the talking heads have been telling us that... Read More
The Winter Games for the Olympics are coming up soon... Read More
Wall Street's watchword has always been diversification, but what does... Read More
Money management starts with protecting your capital, realizing profits and... Read More
Question: How does it get better when it gets worse?Last... Read More
The date October 13, 2000 will forever be embedded in... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
A few years back ? it seems like an eternity... Read More
We have two candidates for president that have really different... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
The demand for world oil is increasing while world reserves... Read More
Well, not really. What I mean is I don't mind... Read More
home cleaning services Wilmette ..For the last few weeks we have seen the stock... Read More
Never lose money in the stock market again. Yeah, I... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Ever turn down a street, get half way and suddenly... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
If you are going to be a winner in the... Read More
When you become interested in a stock or mutual fund... Read More
This article describes the model of a natural relationship between... Read More
The greatest stock market myth is the idea that investing... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Sometimes the best way of lowering exposure to risk is... Read More
It is commonly reported that the stock market averages about... Read More
Everyone who invests in the stock market wants to be... Read More
When it comes to stock market trading it PAYS to... Read More
Let's assume that you want to make some serious money... Read More
The stock market has been going up for more than... Read More
Have you ever thought of investing? Do you have a... Read More
"Buy and hold" is one of the most heralded investment... Read More
Economists know more about how the fragments of society work... Read More
In November of 2000 when the NASDAQ was trading at... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Have you bought any mutual funds this year or late... Read More
Are you one of those many people who dread reading... Read More
Look back over the years and try to remember how... Read More
Stocks & Mutual Fund |