Aggressive stock investment means taking greater risk. Risks can take many forms. You invest in highly volatile market, where price fluctuations ignore all methods of analysis and basic research. There are ups and downs in stock prices, which occur despite the expectations of investors. There are bold and imaginative investors, who have been able to earn even in this climate of uncertainty.

Another form of aggressive marketing is that you invest in shares, which appear to have "gone case" in accordance with popular calculations. But quite contrary to all the wise counsel, they show high growth and deliver rich fruit. Of course, they may also fall further, since they have already made the case.

On the other hand, you invest in some stocks, like Wal-Mart, fully aware that they are expensive and their price can not grow in the near future. Few people are aware that buyers of such high value of stocks do not invest in them to make money at the expense of growth in their prices, but rather, these companies are paying rich dividends to their investors from year to year, so that they become a source of regular income and livelihoods. Dividends paid by blue chip companies such virtually nullify the high prices for their shares which people pay to buy them.

There is no doubt that those who immerse themselves deeper into the ocean or come up with priceless gems or simply lose their lives.

Aggressive investing But that does not respect all a cup of tea.

Defensive approach

As part of a defensive approach, some people recommend a better investment of public treasury bonds. They argue that because you buy the debt obligations of the United States, you can be confident that you will get paid. All that the government should do is raise taxes or sell assets to pay its debts.


This, however, this does not approach, a businessman who believes that you can not make money without incurring some risk. Defensive approach, therefore, does not mean not taking any risk at all, but only available means taking risks and get the best returns at the same time. It must be understood that the risks in stock trading, no more, no less than in any other business.

Ordinary shares the investor, especially one who is a beginner should have a defensive approach and be careful while trading in stocks.

The slow, cautious and conservative approach may not yield high profits at the beginning. In fact, profits may appear to be negligible, preventing almost at the initial stages, but they may be more phenomenal time. You will appreciate their value, when you resigned. This approach demonstrates that truth and slow wins the race.

As the defensive investor's shares, you must calculate how much money you can spare each month without significant cost cutting copies. Consult your stock brokers, as well as do their own research to find out what actions need to invest. It is always advisable to invest in stocks that yield high dividends. If you can easily pull in with the existing resources of income, the best option was to go to the dividend reinvestment plans.

Through time, stocks with a dividend yield higher returns than long-term treasury yields. Not only more dividends in stock investment but also to obtain favorable tax treatment. Dividends from equity investments of more than 15% Federal tax rate while income from treasury bonds, although exempt from state and local taxes, may come to reach 35% tax bracket. In addition, you get capital gains through increasing stock price. [It's like with a cake and have it too.] I do not know if this analogy is necessary.

High dividend stocks brings protect you when the market goes down. As falling stock prices, dividend rises because the cash dividend may exceed the price of buying shares in large percentage. This can be illustrated by the example: you buy a $ 100 stock company with $ 2 dividend that at 2%. Suppose stock price falls by 50%, dividend yield will go up to 4%. (This profit by dividing $ 2, $ 50 and multiplying by 100.). As often happens that the dividends paid by some companies is so great, and attracts buyers in such large numbers that its stock price is determined by high even during periods of lower market.