When investing in equities, you may become distraught by seeing significant fluctuations in the prices of your stocks.  Stocks go up and down regularly based upon the market’s anticipation regarding the financial prospects of a company.  Many times these anticipations are wrong and based upon factors that are more grounded in the emotions of investors than on real economic matters that are impacting companies.  It is important to not allow these price movements to dissuade you from investing.

One trading strategy that allows you to ignore and profit off of price movements is investing through Dividend Reinvestment (DRIP) plans.  DRIP plans reinvest dividends when collected from companies and use these proceeds to purchase more shares at the prevailing market price on the date the dividends are received.  If the market is down that day, you are simply buying more shares.  If the stock moves up significantly, consider selling and reinvesting the proceeds in a different stock.  DRIP plans allow an investor to win through the benefits of compounding dividends and to slowly grow a fortune exponentially over time.