Do you know what creative courage is? It is the internal psychological power to ignore everything outside your own mind to come to your own senses in what you want to believe. The alternative is to accept the junk being continually shoved down your throat by society as reported to you by your five senses. Many people are so psychologically downtrodden that they have abandoned all hope of thinking for themselves even though they may say otherwise. Many brilliant minds of the past have been put to death for views against the popular opinion.
The Spanish Inquisition, for instance, suppressed all counter poised thought (termed heresies by the inquisitors) within the Catholic Church. In the history of the Catholic Inquisition, the Spanish Inquisition is especially well-known, particularly in the nature of the “auto de fe”, or trials, of supposedly converted Muslims, Jews, and Illuminists. This Inquisition also gave rise to the Peruvian Inquisition and the Mexican Inquisition, which continued until those countries split off from Spain.
Fundamentally, the Spanish Inquisitions, despite its political intentions of the King of Spain, demonstrates the ability of society as a whole to support mental slavery. We humans have a long history of bludgeoning one another to death in individual rise to societal dominance because material success in society comes from getting the most heads wagging in agreement with an “expert” regardless of whether the truth is expressed.
It has only been in recent years that freedom of speech has been tolerated in parts of the “modern” world. It has only been until recently that individuals have been allowed to openly question anything or everything they value in their lives if they so choose. Nonetheless, Wall Street derives its wealth from blind followers not dissenters in the stock market.
In finance for the last few decades there are a number of hard headed, steely eyed, mean mouthed professors who sternly defend the efficient market hypothesis of Eugene Fama at the University of Chicago. If you write material that went against the grain you were pretty much thrust out into the cold as a researcher. At least until recently when stronger technology and better data has indicated major flaws in the efficient market premise.
Positive change in our thinking is very hard work because society does everything possible to force us to think the same way. Stock investing is no exception. Warren Buffet for instance teaches us that if you know a company is good and the stock drops in price then you should buy more. How many people do you think follow that advice? I can tell you how many, “virtually zero!”
People don't follow this kind of sage advice because it has literally been beaten into them to not think in ways that are different from the group. Think back to your grammar school days. If you spoke out against the teacher you were so severely reprimanded that you very quickly learned that independent thinking is something severely frowned upon in “modern” education.
If you want to succeed as a stock investor you must develop the creative courage to see the market differently than the public does. You also have to develop the individual pride to act in the way you know is right even if those around you think you are crazy. They may even tell you that you don't know what you are doing for buying shares of stock in the companies you will come to see as the best buys because public is ignoring them as they are mesmerized by Wall Street's false pundits on shows like “Mad Money.”
Stock Market In Recession
Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.
In my opinion, that is gambling. And, I would imagine, some would believe that ANY investment in the stock market is gambling.
So, for the sake of argument, let's assume that every investment in the stock market is a gamble (whether you're trading in and out of a stock position or a long-term investor). If every
Investment in the stock market is a gamble, then, how does the investor/gambler stack the odds in their favor?
What are the right investment choices for the right reason that will stack the odds in favor of the individual investor, to receive a return worth the gamble? What is the RIGHT reason, and
What are the RIGHT choices to make when investing/gambling in the stock market when looking for a return better than a passbook?
Savings account, a CD, Bond or Mutual Fund?
The right reason to invest/gamble in the stock market, believe it or not, is not to make a profit! That's right! The right reason to invest/gamble in the stock market is to provide an INCOME! Actually, Ill go even one step further! The right reason to invest/gamble in the stock market is to receive an EVER-INCREASING CASH income every quarter from every stock that you own.
Once you have set your mind toward this right reason for investing/gambling, then the right choices will become very clear.
If every stock owned (every quarter) is going to supply an ever-increasing cash income, then two right choices, right from the get-go, are necessary. One, that every company's stock
Purchased must pay a cash dividend, and two, that every cash dividend paid by the company would have to be rolled back into more shares every quarter, until retirement. Those two rights
choices means that every quarter there will be more shares of each company owned, which, in turn, will create an ever-increasing cash dividend income (as long as the companies owned maintain their dividend).
To stack the odds further in favor of the investor/gambler, another right choice is necessary. Only those companies with a long-term history of raising their cash dividend every year will be chosen. This right choice will provide a yearly increase in the cash dividend income for the retirement years, when the dividends are being sent home to help ends-meet, and are no
Longer adding shares to the portfolio. The rising yearly dividend increase will, therefore, help off-set the risk of inflation.
Now, there is another right choice to make. To receive the best return on your investment/gambling dollars, all companies chosen
Will be purchased commission-free. All dividends from each company, each quarter being rolled into more shares, will be commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into your investment/gambling plan will work toward always increasing your cash-dividend income.
By investing for the right reason and using the right choices you automatically become a long-term, dollar-cost averaging, buying investor/gambler of company's shares, free of commission charges, whose companies raise their dividend every year, with the investors / gamblers idea or purpose being to provide an
85% tax-free income, through ever-increasing cash dividends for the rest of your life, no matter what the price of the stock at any given time in the market place may be.
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