INVESTMENT STRATEGIES #4

HAVING PATIENCE WITH OUR INVESTMENTS

One of the most important and most difficult strategies to follow is having patience with our investments.

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We should not think that we are going to get rich overnight. This way of thinking will make us make many mistakes, such as selling our shares ahead of time. The best is to let the benefits run as long as possible since once a stock has doubled its price it will grow exponentially, delivering more and more profits.

It is not necessary to be looking at the market continuously. We will simply schedule the alerts to notify us when we must enter or exit the market. You have to be patient to wait for the right moment to enter a stock, and the best time to get out of it. Sometimes it is better to show a passive attitude to the market than to be willing to carry out impulse operations.

SHOULD WE BUY SHARES THAT PAY US DIVIDENDS?

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Finding stocks that pay dividends is one of the mistakes of beginer investors. They think that they will receive immediate benefits each time they collect dividends, but what they do not know is that once a dividend is paid their asset will worth less and less since the share price goes down.

Each time a dividend is paid, it will be deducted from the share price and the benefits will decrease. In addition, we must pay double taxes: at the time of receiving the dividend and at the time of the sale of the share.

It seems that most people think that it is better to buy shares that deliver dividends, but this is a mistaken belief and a deception in which inexperienced investors tend to fall.