Owning stocks in the stock market has returned more to investors than most other investments.  On average, the stock market has grown 8% year by year.

But what does that mean to you?

Well, it means that if you invested Read the rest of this entry »

So let’s say that again.  Owning stocks is the easiest way to become a business owner.

When you buy a stock, you become a business owner.  Really.

So what does that mean?  Well, as a business owner, instead of working for someone else, to increase their wealth, other people are working for you… to increase your wealth.

And these people, employees, go to work every day, voluntarily, to increase your wealth.  Just like Read the rest of this entry »

One of the great things about owning dividend stocks is the company will send you a check every 30 to 90 days.

So when you buy their stock you see results quickly.  They send you a check.

So why would these companies do this?  Why will they send you money?

Well, let’s say that you own shares of Hershey stock, for example.  And for the next three months, Hershey keeps making Read the rest of this entry »

Okay, so President Trump made a new word in a recent tweet.  He ended the tweet with the word “covfefe.”

Some are suggesting this was a typo and he meant to say “coverage.”  Others say he meant to create this new word and a limited number of people know exactly what he meant.

Controversy abounds.

But assuming he meant Read the rest of this entry »

One of the most important ways we minimize our investment risk occurs when our stock price is going down.  Because at some point, if the stock keeps going down, we will want to “stop” our losses.  This activity is actually called using “stop losses,” so that’s a new term for you here.

In order to set a stop loss, we actually decide up front, when we buy a stock, how much we are Read the rest of this entry »

For those who appreciate British humor like I do, this is a must see short video by British comedians John Bird and John Fortune.  They attempt to explain why the market crashed back in 2008.  Interestingly, they did this routine just before Read the rest of this entry »

In our last post on buying stocks at a discount, we talked about the method of setting a trap, like a mousetrap, for when the price of a stock came down to our discounted price. We used a buying technique called a limit order. And the best part of this method was that it was free.

It’s hard to beat free.

But in this post we are going to do just that.

The method we are going to describe always reminds me of the scene in Tom Sawyer where his Aunt Polly tells him he has to whitewash the fence in the front of the house. Tom was rather averse to work like this. So he came up with a rather theatrical strategy to get out of it – and get paid.

Whenever he saw one of his friends approaching, he would put on a big show of Read the rest of this entry »

We said in the earlier post about the Cool Mindset that the most critical part of buying stocks at a discount is to have the right mindset. And I admitted that may sound like a bunch of psycho-babble at first, but I’m sure you started to get the picture on just how important this is.

And here’s another mindset you will want to use. I call it the Bus Stop Mindset.

It can keep you from rushing out to Read the rest of this entry »

We said earlier in our Buy Stocks At A Discount series that having the right mindset was critical when buying stocks. And I admitted that may sound like a bunch of psycho-babble at first, but then we looked at two important mindsets.

They were the Cool Mindset (let cooler heads prevail) and the Bus Stop Mindset (stocks are like a bus stop – if you miss the bus, another will come around in five minutes). Both of these mindsets help you keep a more deliberate attitude when buying stocks, as opposed to just rushing out in a frenzy and paying top dollar.

Okay, so let’s say we have our mind right. How do we actually do this?

It’s pretty simple, really. We do two things. We pick the discount we want to try for, and we use a special kind of order to buy it.

I use a couple of methods to Read the rest of this entry »

The most critical part of buying stocks at a discount is to have the right mindset.  Now I know that may sound like a bunch of psycho-babble at first, but I assure you it is critical. Let me explain.

Most investors just rush out and buy a stock because they Read the rest of this entry »