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The Pocket Idiot's Guide™ To Direct Stock Investing by Lita Epstein, Douglas Gerlach

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Chapter 8
Automatic Investing
In This Chapter
• How it works
• Understanding costs
• Avoid market timing
• Purchase options
Direct stock investing using DRIPs and DSPs works best when you make a long-term commitment to the companies you choose for your portfolio. Over the years you should make the decision to add money to your holdings. In addition, you should reinvest your dividends to keep building up your stock ownership.
Making regular monthly or quarterly investments automatically is the best way to see your dream of a sizeable stock portfolio materialize. In this chapter, we’ll talk about why investing automatically works best and how to do it.

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