If this seems confusing then you're in luck. You can always get by with just thinking of entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of base/counter concept for Fundamental Analysis issues.

So why is it important to know about base/counter currency? The base/counter currency concept illustrates what is actually taking place in a Forex transaction. Some of you reading this, know that short-selling was restricted in stock market *(Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later). But in FOREX you are always buying one currency (base) and selling another (counter). If you sell pair you are simply flipping which one you buy and which one you sell. The transaction is essentially same. This allows you to short-sell with no restrictions.

You want to be able to short-sell with no restrictions so you can make money when market drops as well as when it rises. The problem with traditional stock market trading is that market has to go up for you to make money. With FOREX trading you can make money in all directions. http://www.1-forex.com

Also, rising dividend every year would help off-set risk of inflation and risk of a lower stock price during year would actually accelerate my income from security.

Since I would want my position in stock to grow through years, thus increasing my dividend income, all dividends would be reinvested back into stock, until retirement. A lower stock price during year, therefore, would allow dividend from company to purchase more shares, at a higher dividend yield, and would simply accelerate my dividend income.

∙ Diversify into no more than twelve different companies.

Owning shares in twelve companies is plenty. It would provide diversity to sleep well at night, and provide a cash dividend every week of year. Start by owning three companies, and build from there. Determine how many shares you want of each company before moving on to 4th, 5th, and 6th. Invest in sets of three different companies at a time, until twelve are owned.

∙ Persevere

Success in stock market is not so much derived by buying a company’s stock at lows, but is almost guaranteed successful through dollar-cost-averaging over years. One of most powerful methods of investing in stock market is having perseverance to continue adding shares to your stock positions over years, through reinvested dividends and quarterly infusion of funds, be it 50 dollars, or 100 dollars a month. Persistence, persistence, persistence, and your stock market investment philosophy will become unbeatable!

To read PREFACE from book ‘The Stockopoly Plan- Investing for Retirement’ visit: http://www.thestockopolyplan.com