Do your research and make smart decisions before putting your money into the stock market.

 Do your research and make smart decisions before putting your money into the stock market.

Buying stock at $25 a share with the expectation that it would go up to $35 and then selling it, then buying it again at $25 and hoping it goes down to $35, etc., is not an investment strategy in the stock market.
That is gambling, in my view. Some people probably think that putting money into the stock market at all is a gamble.

Whether you are a long-term investor or just buying and selling stocks, every move you make in the stock market could be considered a gamble. How can an investor or gambler improve their odds of winning if all stock market investments are inherently risky?

What are the best investment decisions to make for the proper reasons so that an individual has a better chance of receiving a return that is worth taking a risk on? than invest or gamble in the stock market for a return superior than that of a passbook savings account, a certificate of deposit, a bond, or a mutual fund—what is the RIGHT motivation to do so, and what are the RIGHT decisions to make?

Believe it or not, making a profit is not the proper motivation to invest or gamble in the stock market! Yes, I agree! To generate income is the proper motivation to invest or gamble in the stock market. To be more specific, I will go the extra mile! An ever-increasing cash income stream from each stock you buy should be your motivation to invest or gamble in the stock market.

Investing or gambling for the proper reasons will make all the difference when it comes time to make decisions.

There are two correct decisions that must be made from the beginning if each share of stock bought (every quarter) is to provide a growing stream of revenue. The first is that all stocks must pay a dividend in cash, and the second is that the corporation must reinvest all dividends in new shares every three months until retirement. If you make the two correct decisions, you will increase your holdings in each firm every quarter, which will lead to a growing stream of dividend payments (provided the companies you own continue to pay them).

Another correct decision is required to further advantage the investor/gambler. Companies must have a consistent track record of increasing their cash dividend year to be considered. If you make the correct decision, your cash dividend income will grow each year until retirement, when you may use the money to cover expenses rather than adding shares to your portfolio. To that purpose, the rising annual dividend increase will act as a hedge against inflation.

There is another correct decision to be made now. We will buy all of the selected companies without charging commission so that you can get the most out of your investment or gaming money. With each quarter's dividends reinvested into additional shares, there will be no commission on any of the companies' payouts. So, your cash-dividend income will always be growing thanks to every cent generated in ever-increasing dividends every quarter and any extra cash put into your investment/gambling plan.

You can become a long-term, dollar-cost-averaging, commission-free buyer of a company's shares if you invest for the right reasons and make the right decisions. These companies raise their dividend every year, and the goal of this strategy is to provide an 85% tax-free income for the rest of your life through ever-increasing cash dividends, regardless of the market price of the stock.

Check out http://www.thestockopolyplan.com for more book excerpts from "The Stockopoly Plan—Investing for Retirement."

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