Part II Of Learn How To Earn Semi-passive Income From The Stock Market PDF Print E-mail
Written by Bernard J Dreyfus   
Saturday, 06 November 2010 14:58
It is strongly advised that you look at Part I of this three part series before studying part II. Otherwise, one may read up on the blog on stock market for newbies.
by BernardJDreyfus


It is highly recommended you ought to read Part I of this three component series before taking a look at part II. Or else, you can actually read up in the website on stock market for freshmen.

Why should dividend investors time the stock market? The key reason is that it can be one way to reduce risk and it can be done to turbo charge your income with a little more work. Obviously, if you think that you don't want to do the extra effort, one could always follow the pure dividend play strategy.

How does timing the stock market minimize risk? In bad times, many companies will chop their dividends as their profits have been hit and survival comes first. It is always not likely feasible to pass out wealth should you be barely making any in the initial place. Hence, investors who hold to their shares will likely be hit when the proportion dividend is cut and the worth of these shares drop. Furthermore, some companies (think Lehman Brothers, Enron, Worldcom) won't ever pass though a catastrophe plus your investment will be absolutely wiped out. It's a double whammy but happily, this can be avoided for those who time the stock market.

How does timing the stock market enhance your earnings? Chiefly, if you purchase the stock at a cheaper price, the percentage dividend is superior and you'll get more bang for a similar buck. As the recession recovers, the value of your shares will go up and you may earn capital gains if you sell it before another plummet in prices. This can be completed say you decided to time the stock market as it should be.

The technical elements of timing the stock market is not going to be brought up here as there is a lot to cover (however, you can actually visit this blog for
DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Bernard J Dreyfus is a highly respected stock investor who is always attuned to the stock market and makes profits regularly. One of his pastimes is to help others who are new to the stock market through his website on stock investing for newbies. Unique version for reprint here: Part II Of Learn How To Earn Semi-passive Income From The Stock Market.