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Friday, October 2, 2009

Investment Series: Infer Bias - By Dollar Cost Averaging (D.C.A.) (VIDEO)

"The first rule of business is to buy cheap ..." - Colonel King, King Rat by James Clavell

This video is part of a series. The introduction to this series, can be found by clicking here.

After that introduction, I discussed the fact that Buy and Hold is not dead.

Within this "Investing Playlist", I then revealed that the kernel, the root of my investing approach, is that of the "Dogs of the DOW" approach. Modified of course. We then discussed what I see as the true difference between investing and trading.

I then discussed the importance of dividends, and after this, we discussed what I look for when it comes to dividends.

We then discussed the power that DRIP (Dividend ReInvestment Plan) has to compound a single purchase.

We then had an entry that talked about the actual purchase, and 'inferring bias', or getting the dividend stocks at good 'seasonal' times of the year. Namely, in November and March.

At times? You will hear the term "Dollar Cost Average", or "D.C.A.". What does that mean for investing? Well, that is the topic of the following video ...

(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)

So in essence, the video is the long winded way of saying: Dollar Cost Averaging is buying more shares of a dividend stock, at a better price.

Next we'll talk about 'scaling into' a dividend DRIP stock's position.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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