Stock Market Volatility
In my opinion, due to the volatility of stock market prices (the rise and fall of stock prices), an investment plan should incorporate both the traits of stick-to-itiveness and common sense, and must have an advantageous, predetermined approach for maximizing each investment in the stock market.
Stick-to-itiveness and common sense - oh, what powerful weapons they are when used for a long-term investment plan in the stock market! They mean making the common sense and advantages decision to:
? Purchase only those companies that have long-term histories of raising their dividend every year.
? Having the dividends from those companies reinvested back into more shares every quarter.
? Allowing that income from each investment to continue growing every week, every month, year after year, not caring if your stocks are going up or down.
? To enhance the return on investment by having the flexibility and adaptability to take advantage of the rising and falling of stock market prices
? Watching the power of stick-to-itiveness and common sense in action. The only thought, or possible concern? - Why didn't I do this 20 years ago?
? Taking advantage of stock market volatility to increase the already ever-increasing income from each and every stock market investment.
? Having a stock market investment plan that understands that in the stock market there are always gains and always losses, and using the losses only to accelerate the ever-increasing dividend income. Building a foundation of ownership in only those companies that are strong enough to raise their dividend year after year.
The above are components of what is really a simple and common sense approach to investing in the stock market that I discuss in my book The Stockopoly Plan - Investing for Retirement. Apply simple common sense, stick to it - and then watch the plan perform its magic: financial peace of mind!