Income investing involves putting your money into dividend-paying stocks.
These stocks have a track record of paying out regular, consistent dividends that act as a stream of passive income.
The following are some of the rules that I adhere to when it comes to effective income investing.
They are in no particular order of importance as all are worth taking note of.
Rule Number 1: Don’t check your shares too frequently
Checking prices daily when you are investing for three years or more is a bit like planting a seed and inspecting it every hour.
With share markets forever abuzz, noise gets mistaken for signal, and overtrading is the result.
Sit on your hands if you must. But the easiest way is to not tempt yourself in the first place.
Rule Number 2: Do make a plan and adjust it infrequently
Investing is like starting a garden: clumsy results stem from buying...