Invest in common stocks

Instructions

Diversify adequately but not excessively.
Invest in 10-30 different stocks to reduce the risk.
Select large companies.
Opt for companies that are conservatively financed and that have a long record of continuous dividend payments.
Use the dollar-cost averaging technique.
Once you’ve chosen the companies to invest in, determine a fixed amount of money you want to invest every month. Then, maximize it by buying as many stocks as possible.
Set a price limit for yourself.
Impose a limit on the price you’ll pay for the stock. Start with a share price limit of 25 times the average earnings over the past seven years.
Get advice from your broker once a year.
Let an investment counselor look at your portfolio and determine if the quality of your investments can be improved.