Buying Strategies

Buying Strategies

Regular (Fixed) Scheduled Investments - Dollar-Cost Averaging

Is invest a fixed amount of money in a stock or fund at regular intervals. The benefit of the strategy is that prices may decline in the stock, as your fixed dollar amount will buy more shares when they cost less. Over time, if a stock moves up and down but generally climbs in the long run, you'll often get better returns by dollar-cost averaging than you would by buying the same number of shares each time.

Dividend Reinvestment - Purchasing innovatively and historical strong companies that offer dividends.

Focus on company strength rather than dividend yield. Once investments have been made into these stocks be sure to return any dividends by purchasing more of the same stock. This will increase your position in the stock gradually over time. Be mind full that automatically reinvesting your dividend is helpful you have less control over the stock price when invested. If you track your dividend reinvestments then you may be able to reinvest at a more strategic price point.

The One Stock Solution - Buying one stock at a time gives you the opportunity to take an initial or extended position in a stock. The amount of money available to make in that position will dictate the amount of return you can yield. This strategy can accomplish two key objectives.

Key objective one, allows for the compounding of a stock investments which will yield the highest return. Keep in mind that diversification is important, but a large holding in a stock should be the goal. Key Objective two, allows for the repositioning of your holding through continued investments, if this is done at strategic points when the stock is trading lower than your initial investment, you can lower your initial profit number.

The Dollar Amount Investment -