Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using the RIGHT choices!

Investing in the 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 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.

For more excerpts from the book 'The Stockopoly Plan ? Investing for Retirement' visit: http://www.thestockopolyplan.com.

You have permission to this article either electronically or in print as long as the author bylines are included, with a live link, and the article is not changed in any way (typos excluded). Please provide a courtesy e-mail to charles@thestockopolyplan.com telling where the article was published.

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'; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/com files/pages/CharlesMOMelia.shtml.

---

Discover the Retirement Breakthrough the Federal Government Created for You - The Roth IRA!

If you don't know what a Roth IRA is then... Read More

The Top 10 Reasons to Invest in Mutual Funds

Everyone who follows the financial news has heard of mutual... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Historical Briefing: Stocks, Finance and Money

The World Bank claims that some two billion of the... Read More

Investment Clubs

Because you don't feel too sure about which stock or... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

How Eating Bitumen Made Me a Better Trader

Trading is a fascinating activity.There are so many layers to... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

Downdraft

For the year 2000 we have seen hundreds of mutual... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Can?t Stand The Heat

It seems that every day I turn on the TV... Read More

Are You A Stockaholic?

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

Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading

Profitable day traders recognize that momentum trading is among the... Read More

Low Expense Ratio

One of the big advertising kicks today from mutual funds... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

What Our Investment Advisor Wont Say Off The Bat

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

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Dont Lose All Your Money

That sounds like good advice doesn't it? Don't lose all... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

What To Buy Now

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

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Price Targets

Every day in any financial publication you will find the... Read More

Stock Trading Secrets?

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

Good News?

As the man said, "I've got some good news and... Read More