Stock Market Investments
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 http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
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 charles@thestockopolyplan.com.
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Where Is The Beef?
Where is the beef? Or maybe it should be where is the bull? Market, that is? The chief investment strategists and analysts of the major brokerage houses have been promising us a new bull market.So far the bull hasn't come in from the distant pasture.
Long Term Investing
In his wonderful book, 'Multiple Streams of Income', best selling author Robert Allen advises Investors to divide their Stock Market investment and trading capital into three portions -50% invested long term (forever) in an Index Fund, 30% invested in Accelerated Stock strategies and 20% in options or high risk investment strategies.This article will discuss long term investing and how technical analysis can alert us to points in time when it is prudent to take profits and exit the Stock market.
Market Timing?
The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by Janus, Bank America and several other well known mutual funds is falsely being called market timing.
Staying Sane While Wall Street Crashes
Everybody is riding the Wall Street Roller coaster. Even if you are not invested, the headlines scream out one word: PANIC!It's hard not to join in the panicking.
Risk Control
Everything you invest in has risk so you want to do your research before you put your money on the line.For example, when McDonald's opens a new restaurant (please, don't call it a hamburger joint) they will investigate as many of the relevant facts as possible.
Its Snowing
The Winter Games for the Olympics are coming up soon and many will want to go to see the giant slalom event. That's the one where the skier starts off from the little hut at the top of a long slope, picks up speed and makes his way around poles on the way down.
Investing in Stocks and The Game of Monopoly
To begin, you might look at playing the stock market as though you were playing a game of Monopoly. That's right; for playing the stock market 'game' is not unlike playing a game of Monopoly.
Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market
In a previously written article, we expanded the use of the term "Trading Baskets" to include stocks from different sectors or industries. Now I want to share with you an approach to day trading or swing trading that I had some success with back in the wild and woolly, pinnacle days of day trading that may still work today.
The 10 Commandments
Wall Street has been preaching for years and years to investors how and where to put their money. The "experts" have put forth these ideas for so long that they seem to be carved in stone just like Moses did with God's 10 Commandments.
Commoditizing the world
Let's discuss commodities; with the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product.
Option Trading Basics
Options trading can increase the profits you make when trading Stocks if you understand how to use them and know what you are doing. Options can be a very useful tool that the average investor can use to enhance their returns.
Buy and Hold Investment Strategy
"Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out of every 5 years.
Duct Tape
Did you run out to buy that duct tape yet? Don't forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know - things to get better so you can resume your normal life style.
Psychology - How to Reduce Negative Thoughts Relating to Trading?
The thinking process of the brain relating to the psychology of trading involves:-- Beliefs -- Feelings -- Values -- Dispositions and -- FaithThe positive or negative energy brings power to a person's actions, which ultimately determines whether a person is a winner or a loser. You can change for the better or for the worst.
Prosperity
It has fallen upon the consumer to make our economy strong. All the politicians, economists and talking heads on TV are telling him (that's you and me) to get out there and spend your money.
Attitude Is [Almost] Everything
I often play a little game with myself when I have to go shopping; to the post office or on other errands.Sometimes I will just go about my business and make little comment or eye contact with the person serving me.
Why Is The Macedonian Stock Exchange Unsuccessful?
The Macedonian Stock Exchange (MSE) is not operating successfully. True, some of the parameters which we use to measure the success of a stock exchange have lately improved in the MSE.
Bull or Bear?
Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that.
Chart Reading
As an investor you will want to check out any equity before you buy it. Many investors go to Morningstar that is one of the largest providers of mutual fund information in the world.
Which Way The Market
I am hearing predictions by brokers, financial planners, talk show hosts and the talking heads on TV that the market is going back to its old highs - DOW 11,700 and NASDAQ 5000 here we come.It seems to me that in 2000 I heard these same people saying there was no top to the market and were looking into their crystal balls for DOW 30,000 or some other fantastic number.