You have permission to this article either electronically or in print as long as author bylines are included, with a live link, and article is not changed in any way (typos excluded). Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where article was published. (Word Count 676) Invest in stock market for RIGHT reason, using RIGHT choices!
Investing in stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.
In my opinion, that is gambling. And, I would imagine, some would believe that ANY investment in stock market is gambling.
So, for sake of argument, let’s assume that every investment in stock market is a gamble (whether you’re trading in and out of a stock position or a long-term investor). If every investment in stock market is a gamble, then, how does investor/gambler stack odds in their favor?
What are right investment choices for right reason that will stack odds in favor of individual investor, to receive a return worth gamble? What is RIGHT reason, and what are RIGHT choices to make when investing/gambling in stock market when looking for a return better than a passbook savings account, a CD, Bond or Mutual Fund?
The right reason to invest/gamble in stock market, believe it or not, is not to make a profit! That’s right! The right reason to invest/gamble in stock market is to provide an INCOME! Actually, I’ll go even one step further! The right reason to invest/gamble in stock market is to receive an EVER-INCREASING CASH income every quarter from every stock that you own.
Once you have set your mind toward this right reason for investing/gambling, then right choices will become very clear.
If every stock owned (every quarter) is going to supply an ever-increasing cash income, then two right choices, right from get-go, are necessary. One, that every company’s stock purchased must pay a cash dividend, and two, that every cash dividend paid by company would have to be rolled back into more shares every quarter, until retirement. Those two right choices means that every quarter there will be more shares of each company owned, which, in turn, will create an ever-increasing cash dividend income (as long as companies owned maintain their dividend).