The below graphic is meant to provide a little comedic relief given the recent market volatility. Unfortunately, this is the thought process of many individual investors. Market psychology induces many to buy high and sell low.
Investing with dividend reinvestment plans can help minimize the “buy high, sell low” mentality of investors. Dividend reinvestment plans provide a way for investors to dollar-cost average into a stock. Dollar-cost averaging helps the investor buy more of a stock when the price is low and buy less of a stock when prices are high.
Consider direct investing with DRIPs today. FirstShare.com is here to help!
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