Invest in the Stock Market for the Right Reason

Published: 10th September 2005
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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.





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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Source: http://charlesomelia.articlealley.com/invest-in-the-stock-market-for-the-right-reason-8505.html


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