| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
KISS Formula
There are formulas for just about everything,but it has been shown that the simpler theformula or method of doing a particular taskthe better it works. It has evolved down toKISS - Keep It Simple Stupid. This also applies to trading in the stockmarket. There are literally hundreds offormulas, both technical and fundamental thatare easily available to investors. Each traderhas his own method he uses. Every professionaltrader on the floor of the stock exchange hashis own variation on some major provenformula. The more skilled he becomes with itthe more he feels it is the best one. Sometimes it takes years for a trader tosettle on one method or group of methods thathe uses to signal buys and sells. It took memany years to find that technical group thatworked for me when I was an exchange member. For some it evolves into long term tradingand for others it can be buying and selling ina matter of minutes. The time period is notimportant. The method is. Even as a floortrader on the commodity exchange I had onlytwo criteria I watched before entering intoany position. All professional traders and investors areaware of the single most important fact andthat is how much I am willing to lose before Iexit this new position. Every KISS formula hasan exit strategy. Every professional knows inadvance how much he will allow himself to loseif he is wrong. The professional does not seta limit on the winning side of a trade only onthe losing side. Ask any full time professional and he willtell you if he is right 50% of the time heconsiders that to be phenomenal. When I was onthe floor I was only right about 40% of thetime, even about 20% and wrong about 40%. BUTI made $3.00 for every dollar I lost. Smalllosses and big winners are the key to success.This is the key to any profitable formula -keeping the losses small. When I see advertisements in the financialpapers for methods claiming to be right 80%,90% of the time I cringe. It just can't be.There is no trader I ever met who was thatgood and I have known some exceptionaltraders. The major text on technical analysis is"Technical Analysis of Stock Trends" byEdwards and Magee now in the 17th printing ofthe Fifth Edition that lists multitudes ofmethods. They all work, but many arecomplicated. A magazine called Futures Truthanalyses 200 commodity trading systems in eachissue. Fundamental Theory is equally complex. There are software programs that allow theinvestors to enter as many as 30 parameters.The more complex it is the less chance it hasto work. And the biggest obstacle to anyprogram is the trader himself. He cannothesitate when a buy or sell signal is given. Keep your formula simple and execute thesignals. You can be a winner. 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
Shorting Stocks - The Basics, Part I of II What does it mean to short a stock?This means that you borrow the stock from your broker to sell to a third party. The idea is to buy back the stock at a lower price, returning the shares to your broker while leaving the remaining cash in your account as a profit. Nest Eggs and Omelets Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. The Next Bull Market We are already in it, but you can't see it. It doesn't look like the one we had in '99. Long-Term Investment In Todays Market? The stock market is very unstable at this time going up and down while interest rates are so low you want to be a borrower and not a lender. Would you like some suggestions on how can you get the most out of low interest rates while being assured your principal will not disappear while you are trying to make some money? Of course, there is always the danger of borrowing the money and then spending it just because it is there. The POWER of a Proven Stock Investment Plan When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. 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. Whos Calling? Its dinnertime and the phone rings. It's Joe Noname with SuchNSuch Investment Company and has he got a deal for you. Trading For A Living - Part 1 There can't be many traders who haven't at least considered the idea of telling the boss what they think of him, throwing it all in and going off to trade the stock market for a living. It's a big risk financially, and that uncertainty is what stops most from jumping ship. Time Out Are you paying any attention to your retirement savings? Do you have it in cash or an account with a broker? Maybe you have a professional manager who is investing your money as you add to it every month.Is your account increasing in value every year? If it isn't why are you letting anyone else invest for you? There is no point having a loser in charge of your money. The Right Mutual Funds For Baby Boomers If you are a baby boomer, time is not on your side. Many baby boomers see retirement age fast approaching with little to nothing in the way of retirement assets that will allow them to actually retire and live a comfortable lifestyle. Struggling Stocks, Booming Commodities 04/28/2005NASDAQ dropped -12.5% year to date in 2005. The Club Yesterday I received my monthly issue of MONEY magazine. This issue has the special feature called "The Ultimate Investment Club" that highlights their picks for the top mutual fund managers. Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market?? Well maybe that's overstating it a little, but it's certainly one of the most important.It is?(drum roll please)? "the need to be right"!Now that probably wasn't what you were expecting. Trading Systems To become a successful trader you must have some kind of method or system to follow that will keep you on track. You may be buying and selling on tips, the weather or phases of the moon (there is a system like that). No Load Mutual Funds: Boost Your Portfolios Returns Investors who exclusively use broadly diversified, no load mutual funds for their stock investments often lose out on opportunities to increase the reward potential of their portfolios. This article looks at two methods investors may use to enhance the performance of their portfolio of diversifed, no load mutual funds. Take The Time You must take the time once a month to review your investment portfolio. It won't take long - less than one hour, maybe 15 minutes. Market Timing? The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by Janus, Bank America and several other well known mutual funds is falsely being called market timing. The Stock Market Investor's Worst Enemy Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. Invest, Be Wrong, and Make Money in the Stock Market I have been trading for several decadesand was an exchange member and floor trader for 17years. You learn fast there or you go broke in ahurry. How We Eluded The Bear Of 2000 The date October 13, 2000 will forever be embedded in my mind. It was the day after our mutual fund trend tracking indicator had broken its long-term trend line and I sold 100% of my clients' invested positions (and my own) and moved the proceeds to the safety of money market accounts.
|
| home | site map |
| © 2006 |