Investing 102

[GregWeld]

Originally Posted by ErikLS2

I would just remind everyone that this is the case if shares are actually bought at the lower prices. If you buy at a higher share price and it goes down, your yield doesn't go up. There are a lot of good 4% yields out there now right now.

I'm really thinking I shouldn't have posted away about my recent short term successes, might have jinxed myself. But, I do have some cash set aside for things like what is happening now, just sitting back and waiting it out for now. It's a little more than unnerving though that these first 4 days have never happened in history before though.

Yield is ALWAYS based on COST. The yield doesn't fluctuate (unless the dividend is cut -- or unless the divided is raised) on your cost basis.

There's many posts in here about calculating your yield.


NOW --- HERE'S the big reminder for the year!!!


Remember the saying "BUY LOW -- SELL HIGH" ?? I believe that buying LOW is the most important aspect of investing. Obviously - we never know if we are buying low at the time. This is purely a judgement call based on where you are mind set wise. Can you stomach the drops in prices AFTER you've bought? Are you able to buy MORE later if the price stays down or goes lower....

For the AVERAGE INVESTOR -- that is buying a relatively small number of shares at a time... I wouldn't worry about trying to figure out exactly when the market is low... Rather, I'd just buy at regular intervals and it should average out over time. The key is to be invested - and to stay invested.