| Investing in
the Stock Market |
Source: Charles O'Melia |
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 the stock market is gambling.
So, for the sake of argument, let’s assume that every investment in the
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 the stock market
is a gamble, then, how does the investor/gambler stack the odds in their
favor?
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What are the right investment choices
for the right reason that will stack the odds in favor of the individual
investor, to receive a return worth the gamble? What is the RIGHT reason,
and what are the RIGHT choices to make when investing/gambling in the
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 the stock market, believe it or not,
is not to make a profit! That’s right! The right reason to invest/gamble
in the stock market is to provide an INCOME! Actually, I’ll go even one
step further! The right reason to invest/gamble in the 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 the 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 the get-go, are necessary.
One, that every company’s stock purchased must pay a cash dividend, and
two, that every cash dividend paid by the 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 the companies owned maintain their dividend).
To stack the odds further in favor of the investor/gambler, another right
choice is necessary. Only those companies with a long-term history of
raising their cash dividend every year will be chosen. This right choice
will provide a yearly increase in the cash dividend income for the
retirement years, when the dividends are being sent home to help
ends-meet, and are no longer adding shares to the portfolio. The rising
yearly dividend increase will, therefore, help off-set the risk of
inflation.
Now, there is another right choice to make. To receive the best return on
your investment/gambling dollars, all companies chosen will be purchased
commission-free. All dividends from each company, each quarter being
rolled into more shares, will be commission-free. Therefore, every cent
earned in ever-increasing cash dividends every quarter and any extra cash
put into your investment/gambling plan will work toward always increasing
your cash-dividend income.
By investing for the right reason and using the right choices you
automatically become a long-term, dollar-cost averaging, buying
investor/gambler of company’s shares, free of commission charges, whose
companies raise their dividend every year, with the investor’s / gambler’s
idea or purpose being to provide an 85% tax-free income, through
ever-increasing cash dividends for the rest of your life, no matter what
the price of the stock at any given time in the market place may be.
To read the PREFACE from the book ‘The Stockopoly Plan – Investing for
Retirement’ visit:
http://www.thestockopolyplan.com
About the Author:
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. To invest in a copy of The Stockopoly Plan visit:
http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml
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