The Power of Pound Cost Averaging
You have decided that you would like to invest some of your hard earned money and are interested in the Stock Market as a way of attempting to make some money. But how do people and businesses make money on the Stock Markets? Now I am not a financial adviser and I am therefore not authorised to give financial advice; I am however a very experienced investor and in this article I will be providing my thoughts and opinions of the best way to make money out of stocks and shares – this therefore is not advice and is merely an opinion.
To start with I would like to make it clear that I do not work within the investment industry; I am just a person who likes making money and have therefore become interested with all things stocks and shares. On a day to day basis I sell composite doors, I offer a DVD duplication service and I work with a group of cost reduction experts on a part-time basis.
I have been investing my personal savings since the age of twenty-one; I am now aged 36. At the outset I would buy the shares of single companies such as Vodafone; there is however a lot of risk when doing this especially for people like myself who have no real connection to the companies involved. Despite doing quite a lot of research into the companies that I would choose it still felt like I was "gambling" with the money. Just like any gambler I had some winners and some losers but I never quite felt in control of the situation and I never had any real confidence in what I was doing.
That has now all changed; I now have full confidence in what I am doing. Why do I suddenly have a new found confidence? Well I now invest monthly premiums into collective investment schemes which invest in various regions such as China, Russia, Latin America, India, the US and the UK.
The beauty of investing on a monthly basis is the fact that it takes advantage of something known here in the UK as pound cost averaging. This is where your premium buys you more units when the unit price falls which benefits you when the unit price rises.
I have been investing in this way for a few years now and I have done very well for myself.
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