I realize everyone who is involved in investing in stocks is doing it for the money. As everyone knows this can be risky business but it does not have to be. If you want to gamble thousands or even tens of thousands on a single stock it is your money but if you want peace of mind and you are content to invest just as an added supplement to your income, say a few thousand dollars a year extra income, then there is no need to gamble and fret. You will be happier and so will your spouse if you just play it safe.
The key is to buy cheap to stocks doing your homework of course before you put your money down on any particular stock. And, this is important, only buy 100 stocks of any one company. No, you are not going to get rich this way nor will you lose your shirt. What you can do though if you will just follow the market is pocket an extra 0 here and there.
It may take a little patience as you may have to wait on a stock from time to time to get it up a dollar a share but if you are not throwing darts to pick your stocks you ought to come out this way just fine and end up picking up more winners than losers for a net profit. Besides, who says you even have to wait until a stock goes up a dollar? If it only goes up half that amount you have made an easy just by tapping some keys on your keyboard.
One always has to remember you will never be able to pick winners every time and sometimes it may be you will get tired of waiting and sell at a loss. You may be better off selling at a loss and taking the money and reinvesting in a better quality stock. But here is the bottom line. You buy let us say a stock and it goes down .50 and just sits there and looks like it is never going to come back.
You sell it. What have you lost? Will 0 destroy your life?
However, you go out and start buying hundreds and hundreds of shares in a single high price stock and it goes down 25% and doesn’t come back and you are talking some major losses that can trouble your life. It is the age old traits of human character that gets the stock investor in trouble – greed and impatience. I am money ahead and intend to stay that way by not being greedy or impatient. Yeah, I know I will never get rich this way and maybe make but little but it will be better than an interest account at the local bank and I will not have a nervous breakdown worrying about the money I am losing because I over invested.