Stock trading system – If you choose to buy common stocks, you will undoubtedly find it advantageous to use the Monthly Investment Plan, information about which can be obtained from many New York Stock Exchange member firms.

In this plan, the investor receives full and fractional shares worth exactly the amount of his regular payment (monthly or quarterly only), and full and proportional fractional dividends are paid into his account (and automatically reinvested, if he likes). The investor who uses this plan, however, comes in for some stiff commissions. On amounts under $100, he pays six percent, substantially more than that charged on larger purchases. On amounts of more than about $600, however, they drop to about two percent or below. In view of the fact that individual stocks will give varying results under dollar averaging, it might be worth suggesting that the investor using MIP select at least three securities, buying shares of each every third month, thus obtaining a modicum of diversification. More popular than the MIP are mutual fund accumulation plans.

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