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.comCharles 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.shtmlYou have permission to publish this article either
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Charles O'Melia