If you are like me
you have heard people speculate that the market is due to correct itself. Some
people predict that 2014 is going to be the year that stocks implode and we are
forced to get out or take huge losses. Personally I am not afraid of losses especially
since in most cases I will never realize any losses I will only invest more.
This is how I have been able to make nice gains overtime.
I love big
companies like General Electric symbol: GE companies that you don’t have to
worry about. You know that they are going to keep on making big money and
paying out a nice dividend. Everyone has been running away from REIT’s all the
while I have been buying more and more. This is because I love opportunities to
take some risk. I love taking a gamble while getting paid. Sure there are
reasons why everyone is running away due to interest rates rising, but to me
this is only a short term problem. I would be afraid if I thought I was only
going to invest now a large sum of money and then not invest later on to
average it out.
This is why I love
dollar cost averaging because it brings out the best in anything you purchase.
It doesn’t matter if your stock losses 20% because you buy it at the bottom,
then when it goes back up you are in a better position than when you started
out. I would recommend everyone who invests to use dollar cost averaging as an
investment strategy.
I don’t want you to
think that dollar cost averaging is an excuse not to do your research when it
comes to investing. I just want you to utilize this tool so that you can make
huge long term gains in the stock market, because it’s all about making money.
Take the time to look at a company’s earnings it’s a great
indicator of what to expect. Try not to be sold on projections because they are
not always correct.
Invest with money
that you do not need! It is sad how many people out there invest with money
that they really need for bills. You need to have the money freed up so that
you are not worrying all the time about where you money is. The stock market
goes up and down. If you cannot handle that roller coaster this is not for you.
You need to be comfortable with having a 50% loss on paper. You need to believe
that your stock is going to go back up. This means if you truly believe it will
go back up you are going to be excited to see it go down that 50% and you are
going to invest more.
Maybe 2014 will be
the collapse of the financial market, if that scares you I can understand. Some of us were built to withstand the heat
while others are terrified of the kitchen. Personally I am going to stay
investing. I am also going to keep on earning money outside of the market. I
keep the money I need out of the stock market. This may in theory limit my
overall gains, but it keeps me warm, full and happy.
