| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Jack and Jill
Jack and Jill went up the hill to fetch abucket of ?money. Money? They are continuingto fill their bucket with stocks without anyconsideration to the value of these equities.They are not worried at all as they are buying"safe" mutual funds. Everyone knows mutual funds are safe. Jackand Jill know they don't know how to pick goodstocks so they leave that to the fund manager.He is an expert. When you look at the long term record of 99%of the mutual funds you will see that expertise hasbeen sadly lacking. I hate to remind you of the2000 to 2003 period, but I must. In fact I musttell you it is going to happen again. Now youwant to know when?.and so do I. And that is the problem with almost everyfund manager. As long as the market is going up theycan't do much damage to your account, but whenit rolls over and heads down they have no ideahow to invest when a bear market is in progress. Not a single one of them will acknowledge thatcash is a position. Cash is a position? They are in shock. Ofcourse they are. If brokerage customers puttheir money in a money market account while themarket is falling it means they do not make anycommission at all and if they recommend this totheir customers the brokerage manager will firethem because he won't make any money either."Keep your customers fully invested or I'll showyou the door" is the manager's comment. You must learn when to sell. Any fool canbuy, but it is the wise man who knows when to sell.To see the condition of the overall market oneof the best indicators is the SP500 Index. Yourbroker compares everything he does with theSP500 because it is a broad base of 500 stocksthat are widely traded. The finest indicator is the SP500 Index.Draw a 40-week chart of the closing prices. If youdon't know how ask your broker. He will tellyou. Write it down and save it. It is verysimple. Have him set up a 40-week Simple MovingAverage to appear on that chart. Look at 5 yearsworth of prices. Immediately you will see thatif you are in the market while the 40-week MA isgoing up you are making money and if you are outof all your positions while the index average isgoing down you will not lose money. It doesn'tget any easier that that. Jack and Jill can fill their pail as themarket is going up and need not spill theiraccumulation while they walk confidently downthe hill holding their bucket full of cash notequities. Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know. Copyright 2005
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
War Market There is no question that the stock market is being affected by war jitters. When it looks like peace we have a strong rally. Humpty Dumpty the Stock Market Falls Down Humpty Dumpty had a great fall and all the King's horsemen could not put Humpty Dumpty back together again.The Stock Market has had a great fall and all the brokers, CEOs, analysts and politicians have not been able to get it back up again. Where Is The Beef? Where is the beef? Or maybe it should be where is the bull? Market, that is? The chief investment strategists and analysts of the major brokerage houses have been promising us a new bull market.So far the bull hasn't come in from the distant pasture. Successful Trading - Establish Your Risk Level Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. The Stock Market is a Roller Coaster: Prepare for the Ups and Downs IT'S REMINISCENT OF THE OLD children's tale about an old Chinese farmer who tells his friends his story, and they enjoin with "That's good" or "That's bad" on alternating lines:Farmer: My horse ran away.Friends: That's bad. Never Lose Money Never lose money in the stock market again. Yeah, I know. Rebalance And Diversify The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio. Learn to Calculate a Stock's Pivot Point Stocks breakout from properly formed bases everyday but many investors don't understand how to locate a pivot point or what patterns to study that may contain this very important buy signal. A pivot point can be described as the optimal buy point or the area at the end of a familiar base pattern where the stock breaks out into new high territory. Box Of Chocolates Ever have one of those sample boxes of candy? Each little piece is beautifully wrapped in colorful foil or decorated with an interesting design. Taste just one. Risk Control Everything you invest in has risk so you want to do your research before you put your money on the line.For example, when McDonald's opens a new restaurant (please, don't call it a hamburger joint) they will investigate as many of the relevant facts as possible. Bad News is Good News For weeks, no, months we have been bombarded with nothing but negative news about the economy in general and thousands of individual companies. The stock market has dropped thousands of points and more than $8 trillion in paper assets have disappeared. How to Find Value in No Load Mutual Fund Investing What are you thinking when it comes to your no load mutual fund selections? Are you saving pennies and sacrificing dollars?Are you spending your time looking at expense ratios, analyzing Morningstar ratings and searching for funds with low fees and no 12b1 charges? If you are like most people, you know these things in and out. You've spent hours evaluating them, and your chosen mutual funds cost little to purchase and maintain. Catnip of the Stock Market I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. Inertia One of the basic laws of physics is that a body in motion will remain in motion unless disturbed by another force. What has this to do with the stock market?For the last 2 years the long-term trend of the market has been down with a few momentary deviations. What Can Model Airplanes Teach You About Trading? I was devastated!I just couldn't believe it. I was 10 years old and my dreams were shattered. Emotional Maturity If you are going to be a winner in the stock market you must have emotional maturity. I did not say you had to be smart or know how to pick stocks and mutual funds. Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity Most stock traders know that momentum trading can be a very profitable activity. You can make big amounts of cash in a short period of time. No Load Mutual Funds or Exchange Traded Funds (ETFs)? If you are fed up with early redemption charges and ever increasing mutual fund management fees on top of bad-performing fund managers, read on. There is a quiet revolution going on in the no-load mutual fund industry and you, the individual investor, may benefit from it greatly. Big Buildings Can Mean Big Economic Disaster AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New York City, to be the world's tallest building, economist Mark Thornton offers a history-based theory of the relation between super-buildings and the economy. Thornton surveyed economic performance worldwide following the completion of each of the world's tallest skyscrapers, and suggests what these events foretell. Intervention Intervention. Now don't let that big word scare you.
|
| home | site map |
| © 2006 |