Simple Investing Beginning Steps

The first simple investing idea I am referring to is buying dividend paying stock and re-investing the dividends back into the stock.  Besides a computer and an internet connection, the first things you need is a discount brokerage firm that will allow you to reinvest your dividends into the stock.  Not all brokerages will allow that.  That’s one reason I have two brokerages I deal with.  More on that in a minute.  This feature of reinvesting dividends is called compounding and works the same as if you had a savings account in a bank that you let the interest compound.  When you set up your account, arrange for permission to do puts and calls.  This will figure into the second simple investing idea I’ll talk about later.