When you become interested in a stock or mutual fund you can call your broker and he will send you reports on how the company is doing, what their management is like and what might be the projected earnings for the company and how the industry is doing. Great information.
You will apply yourself to this mound of papers to determine if you want to buy the equity. You might also send for more reports from independent analysts such as Morningstar. You will become buried in papers. That is what the brokerage company wants. The reason is very simple. If you buy the stock after doing all that research and it goes down instead of up they are not responsible for your stupidity. Of course, if it goes up they can take credit for providing all that great information.
Now let's think for a minute. You received all that information that was already printed so it could be sent to you. It makes me ask when was that printed? How old is the information? If I can get all this stuff about the company it means that anyone can. What it boils down to is the information is just that - information and none of it will tell you that the stock will go up further because the whole world knows.
These brochures are made to help you BUY not SELL. In my years of experience I call them a work of fiction. No brokerage company is going to issue a bad report about a company at least until it is ready for bankruptcy and by then your investment dollars have disappeared.
I know your next question. If I can't rely on those reports how am I going to buy anything? There is a better way. You will want to see the price action of the stock or mutual fund. All stocks undulate as they go up or down and you want to know the major trend.
On the Internet you can go to a web site www.bigcharts.com and type in the symbol of the stock or fund and request a weekly chart going back for about to 5 years. What you are interested in is what is it doing during the past 6 months to one year. If the trend is up it is a buy and if the trend is down or sideways don't buy it or if you own it sell. See how easy that is. Brokers and financial planners won't like it because it takes all the mystery out of buying stock and they don't want you to know this simple procedure.
Analyst reports give you lots of useless information, but will not tell if the stock will go up after you buy it. If it isn't going up don't buy it.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Indian Head Park taxi to Midway .. Lockport Chicago limo O’HarePicture one of those clubs where only the real heavyweights... Read More
First let's see what protectionism is. According to Mr. Webster... Read More
An investor can find and research the best stock on... Read More
There are many good penny stock investments available, which could... Read More
You have heard about a particular mutual fund from a... Read More
You have a lock on your house. You have a... Read More
Trading is a fascinating activity.There are so many layers to... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
Every successful trader has a winning system. There are of... Read More
If you are serious about making and keeping money by... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
How do you invest? What do you really pay? At... Read More
If there is one term over-used when talking about making... Read More
When the stock market is going up and all your... Read More
I have a 2-car garage. There are nice shelves on... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
A PEG ratio cannot be used alone but is a... Read More
If you don't know where you are going any road... Read More
If you've ever flipped on the television to CNN Financial... Read More
Sidney felt sick as she looked at her latest OptionsXpress... Read More
Now where have I heard that before? I know. It... Read More
The stock market has been in an up trend for... Read More
This is a guide to the different types of mutual... Read More
Mutual funds were created with the idea that one person... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
Bonnie Chicago charter limousine ..For years I have been saying you must have a... Read More
Options trading can increase the profits you make when trading... Read More
Two weeks ago I wrote about what the Securities and... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
When it comes to buying a stock or mutual fund... Read More
Ever turn down a street, get half way and suddenly... Read More
The higher the market goes the more confusing are the... Read More
This is the continuing story of our two imaginary traders,... Read More
In one of my previous articles (Investing in the stock... Read More
Wall Street's watchword has always been diversification, but what does... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
If you want one.And I don't recommend any broker with... Read More
This is an extract of an article which was first... Read More
One Saturday morning, while he was sitting at his computer... Read More
The Law of Chaos is the theory of random unpredictable... Read More
If you don't know what a Roth IRA is then... Read More
Day trading is all about making buy and sell decisions.... Read More
After finding the price of a particular stock, usually the... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
If you are a baby boomer, time is not on... Read More
In November of 2000 when the NASDAQ was trading at... Read More
A stock market index is a statistical measure of changes... Read More
I am sure that if you have a brokerage account... Read More
A PEG ratio cannot be used alone but is a... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Stocks & Mutual Fund |