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. So good! One more. And another. Before you know it the box is empty. Nothing left.
This upmove in the stock market is very tempting - and could leave you with a tummy ache.
All the market "experts" are telling you that the bull market is back and to get your buying clothes on. Open your wallet and get in before it is too late. Mr. Schwab says it is dangerous to be out of the market. There are great values out there. These stocks are so low they can't go any lower. And there is a Santa Claus and an Easter Bunny.
There is one position I do advocate, but most broker and financial planners won't like it. It is called CASH. No broker believes cash is a position. They say you must always be "invested". It seems they have forgotten that investing means making money and another important part of investing means not losing money.
For the last month we have seen the market go up and some of you have seen some of your money come back. Not too much, but some. You want desperately to believe the bull market is back and your winnings will be restored. I sure hope so. Just suppose this is what is called a rally in a bear market and that it will not last. Then what? You don't want to see your investments slip away again, do you? You don't know if it is a good idea to sell now or wait. Your broker won't be any help.
There is a solution. Stay with your stocks and mutual funds as long as they are going up, but sell them if they go down. How? Every Friday after the close you get the settlement prices of your various issues and you then call your broker Monday morning to put in a "Good Til Cancelled Stop-Loss Order" that is approximately 10% below that closing price. As long as the stock is going up you follow this procedure every week and eventually you will be stopped out. Never move your stop down. You no longer have to guess if this is the highest price that your stock will reach. The stock itself will tell you.
Now you have cash and, if you want to, you can buy a better stock or mutual fund that is going up..
When you pick out a new chocolate (stock) do it carefully and don't try to eat the whole box at once. Sometimes it is best to put the box (your cash) away so you can come back to it another day.
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.
Copyright 2005
http://www.mutualfundmagic.com; 1-888-345-7870
Batchtown Chicago prom limo .. Lockport Chicago limo O’HareWith all the bad news that has been dumped upon... Read More
Let me start by saying that...Most online brokers do not... Read More
Are you attracted to the idea of being in control... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
I read a comment by a forum member on another... Read More
I was recently interviewed for a press release through a... Read More
Starbucks earnings are up again and so is their stock... Read More
Now where have I heard that before? I know. It... Read More
It has fallen upon the consumer to make our economy... Read More
"Buy and hold" is one of the most heralded investment... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
I use the P/E ratio as a secondary indicator for... Read More
What is the Series 7 Exam? If you... Read More
There is a famous cliff on the ocean in Acapulco... Read More
The debate rages all over Eastern and Central Europe, in... Read More
In 1960 an engineer working for a watch company in... Read More
If you are fed up with early redemption charges and... Read More
In November of 2000 when the NASDAQ was trading at... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
Do you have a nest egg? You know, a place... Read More
Intervention. Now don't let that big word scare you. The... Read More
People are always asking me when should I sell my... Read More
Mutual funds were created with the idea that one person... Read More
Professional stock options traders use the term lean to refer... Read More
shuttle from Midway Munster are ..Investing in long-term financial vehicles give you the most gains... Read More
Every year I go to the Money Show in Orlando,... Read More
Is really not as important as to how you invest... Read More
With the stock market stubbornly refusing to settle down and... Read More
There are red lights, green lights, blue lights and spot... Read More
If you've ever flipped on the television to CNN Financial... Read More
Just 30 years ago the stock market was a shadow... Read More
Carefully thinking through your goal as a trader is of... Read More
A few years back ? it seems like an eternity... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
The Surgeon General of the United States says that smoking... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
Mutual funds and brokers are always preaching not to buy... Read More
I have a 2-car garage. There are nice shelves on... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
It seems that every day I turn on the TV... Read More
As the man said, "I've got some good news and... Read More
Sometime in the third quarter of 1997, someone told me... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
Having lived aboard a sailboat for 2 years I was... Read More
Caught in a whirlpool and being sucked under. No life... Read More
It looks like the market is ready to start up... Read More
Sometimes the best way of lowering exposure to risk is... Read More
One of the basic laws of physics states that a... Read More
Four blind men were asked to give a description of... Read More
Stocks & Mutual Fund |