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/com files/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 mailto:charles@thestockopolyplan.com

---

Emotional Trading

The single most expensive stock market trades are those made... Read More

Buying Stocks and the Importance of Correct Timing

An investor can find and research the best stock on... Read More

Stock Trading Secrets?

How often have you come across an advertisement or e-mail... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

365/7/24

What does it take to be a stock trader? It... Read More

Different Ways of Buying Stocks

Let's say you are interested in this one company. You... Read More

Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading?

Ever notice how behavior in one area of life can... Read More

Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor

Recently I was invited to appear on a live CNNfn... Read More

It Cant Be Done

Wouldn't it be nice if you were only in the... Read More

Dividend Reinvestment Plans: Investing on Automatic Pilot

If you're like many investors who squander those small dividend... Read More

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More

Duct Tape

Did you run out to buy that duct tape yet?... Read More

What Our Investment Advisor Wont Say Off The Bat

Most advisors will tell you they can beat the market.... Read More

?Fears Only Enemy Is Action?

What a great statement!I just heard someone use it in... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Inertia Syndrome

When it comes to buying a stock or mutual fund... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

Pathways

During our travel down life's path we come to many... Read More

Defining a Long-Term Investment in the Stock Market

For some "long term" would mean holding a stock position... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Forecasting the Stock Market

Every day I see in the financial section of newspapers... Read More

Market Psychology

Today we are inundated with tons of information about the... Read More

Stock Market Insanity

Let's first define insanity. It is doing the same thing... Read More

Online Broker Trade History Not Doing the Job

Let me start by saying that...Most online brokers do not... Read More

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

Diversification

Wall Street's watchword has always been diversification, but what does... Read More

Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More