Daily Money Minute

Fotolia_54867638_XS_7“The stock market is just gambling for posh people.” ~Anonymous

Frequent and constant trading on the stock exchange in the hope that you’ll make quick financial gains from capital appreciation can lead you down the road to losing a lot of money, if you don’t really know what you’re doing. Professional traders can make money this way and some even make a lot of money. However even with the professionals there are plenty of examples of where it has all gone seriously wrong. In the wrong hands, speculation can be a weapon of mass wealth destruction. However buying shares in quality, cash-generating companies with a strong portfolio of products and broad international exposure, paying strong and sustainable dividends, this is what investment is really all about. Buy the shares at a price reflecting fair value, with the aim of holding them for the long-term, you’ll have an income stream for years to come. And over the long-term you should enjoy capital appreciation too. I’m an investor not a speculator. Speculation may be gambling but investing is all about creating income streams.

© Roy Sutton and Mann Island Media Limited 2013. All Rights Reserved.

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