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?
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
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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