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
detailed home cleaning Park Ridge ..Everything you invest in has risk so you want to... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
The higher the market goes the more confusing are the... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
No, this is not a symbol for some Latin number.... Read More
Wouldn't it be nice if you were only in the... Read More
It is finally catching up with them. The brokerage companies... Read More
When we go to the circus we see a trapeze... Read More
The Law of Chaos is the theory of random unpredictable... Read More
I would like to share with the reader an article... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
Stock trading remains a very competitive field and the stock... Read More
If you have talked to a stock broker or financial... Read More
Day trading is all about making buy and sell decisions.... Read More
There is no question that the stock market is being... Read More
Having lived aboard a sailboat for 2 years I was... Read More
It is commonly reported that the stock market averages about... Read More
I have a 2-car garage. There are nice shelves on... Read More
The big bad bear is stirring again. So far he... Read More
Right now there doesn't seem to be any "gold fever".... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Do you own any mutual funds? In an IRA or... Read More
Before we get into all the good news out there,... Read More
What a great statement!I just heard someone use it in... Read More
All stock trading and investing methods must deal with the... Read More
express cleaning service Des Plaines ..Hedge current portfolio positions and gain access to capital resources... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
One of the basic laws of physics is that a... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
It has been said that low cost or even free... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Every broker and financial planner will tell you that you... Read More
First let's see what protectionism is. According to Mr. Webster... Read More
Forget making a profit; instead focus on the income provided... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
One Saturday morning, while he was sitting at his computer... Read More
All of the talking heads have been telling us that... Read More
Last time we looked at the real performance of the... Read More
What a great statement!I just heard someone use it in... Read More
"Buy and hold" is one of the most heralded investment... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Suppose your position has made a big move and you... Read More
You'd have had to be living on a desert island... Read More
The gleam and bright lights of Wall Street lure in... Read More
If you were to find that you had some severe... Read More
It is wonderful to be alive in the information age.... Read More
Just about everything you have been told about Social Security... Read More
There can't be many traders who haven't at least considered... Read More
Several times each month I am solicited by various market... Read More
It is commonly reported that the stock market averages about... Read More
Stocks & Mutual Fund |