Wednesday, 26 August 2015


"Buy and Hold" is the most basic way to amass wealth via shares, as the name suggests you buy and hold them, not much more to it than that.

Having said that, do some research buy into solid companies that you are sure will be around years from now. Since you are basically using the dividend payments as income choose stocks with high and solid dividends.

Your trading platforms will all be different to what I use but most should have info on how much the dividends are and industry expectations on growth etc.... Since I live in Australia if I was to use this method I would by a good mix of banks, and a couple of big miners as I know they pay out solid dividends. But it may be different in your country

Also take note on how much your brokerage costs are. If you are paying $20 to buy a package of shares it can be a bit counter productive to buy them in $200 lots as you would be wasting 10% on brokerage maybe wait till you have a larger amount saved before you go in.  $20 on a $1000 package doesn't seem as bad does it?

Also it makes sense to buy across a few different industries and companies. Most experts would suggest you keep a portfolio of at least 10 different stocks as typically 6 might increase in value, one or might stagnate and one or two might decrease or worse still dissolve. Id hate to see you put all your money into one basket and loose it.

"Buy and Hold" is a great way to get started and while you're building your portfolio maybe subscribe to a magazine like "smart investor" I have found a few good ideas in that mag or bloombergs online any information you can start absorbing is good! You will start to get an idea if markets are high or low and if you want to accellerate your earnings a little you can move into the the next category of share trading


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