Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that. It looks like he is right - for a change. I remember he said the same thing in 1999 and 2000 and I ended up losing most of my money. But it looks good right now.
Yes, it does look good now and I have been a buyer since the middle of last year. Is this another bubble? The talking heads on CNBC-TV say we are back in the bull market again.
My one rule has been to buy when the market turns up and it sure has done that; however, there is another rule that has kept me from losing money and that is to sell when the market starts going down. The nice thing about this is you don't have to be a market "expert" to know when this happens. All you have to look at is the price of one of the major indexes such as the S&P500 or the NASDAQ Composite to see when they penetrate their 200-day moving average. One that I watch all the time is the Investor's Business Daily Mutual Fund Index that is in the first section of the paper. You don't even have to buy it as you can read it at the library.
Anyone who tells you he predicts when or where the top or bottom of a market will be is usually guessing unless he has a proven real time track record of making those calls for many bull and bear markets. Predictors are usually wrong, but trend followers are almost always right. The reason is simple. Once the underlying facts, whether physical or emotional, come into play and a new direction is found the stock market will follow that course until another major set of facts comes into play.
This can be seen when the market becomes very overbought and overvalued as it was in 2000 and very oversold as it became in October 2002. A new set of circumstances were initiated and the general market took off in another direction. These long-term trends are relatively easy to determine by anyone who will to listen to the voice of the market.
Long term trend following has a drawback. You will not be a buyer at the bottom or a seller at the top because of the time delay, but you will never lose large sums of money as many did from 2000 to 2003. The use of this simple method will not require research or loads of useless information that Wall Street insists you need. You will be able to determine on your own when a major trend changes and then act accordingly to either buy or sell.
Those who have been wise enough to observe saw the trend change and became buyers last Spring and Summer and now have nice profits.
Yes, it is a bull.
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
express cleaning service Arlington Heights ..Checked your 401K lately? Going back to about a year... Read More
If you have not back tested your trading system, you... Read More
When purchasing mutual funds we are cautioned to read the... Read More
When it comes to mutual funds, there is a lot... Read More
Several times each month I am solicited by various market... Read More
How do you make money without picking tops and bottoms?I... Read More
Investing in long-term financial vehicles give you the most gains... Read More
What a great statement!I just heard someone use it in... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Money: the most charged word in the planet. It means... Read More
There is nothing more exciting than finding an undervalued stock... Read More
It takes a total mental commitment to the task. It... Read More
Have you seen all those big full page ads for... Read More
I have been trading for several decades and was an... Read More
You may have wondered why your mutual funds have been... Read More
The fight continues to rage among traders who use technical... Read More
It has been said that low cost or even free... Read More
When you become interested in a stock or mutual fund... Read More
Caught in a whirlpool and being sucked under. No life... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
Starbucks earnings are up again and so is their stock... Read More
In my opinion, due to the volatility of stock market... Read More
If you were to find that you had some severe... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
tidy up service Arlington Heights ..Wouldn't it be nice if you were only in the... Read More
I don't know what kind it is, but I saw... Read More
Carefully thinking through your goal as a trader is of... Read More
It has been said that low cost or even free... Read More
In his wonderful book, 'Multiple Streams of Income', best selling... Read More
This is an extract of an article which was first... Read More
Let's go into the details of why non-indexed mutual funds... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
The stock market is very unstable at this time going... Read More
As I said in Part I everyone in the insane... Read More
Starbucks earnings are up again and so is their stock... Read More
Do you own any mutual funds? In an IRA or... Read More
You remember (they show it on TV every year) the... Read More
In my opinion, due to the volatility of stock market... Read More
People are constantly asking me why is the stock market... Read More
For weeks, no, months we have been bombarded with nothing... Read More
Every year I go to the Money Show in Orlando,... Read More
Duck! No I don't mean a quack, quack. I meant... Read More
What account size do I need?How much money can I... Read More
The Law of Chaos is the theory of random unpredictable... Read More
You have decided to buy some stock or mutual funds,... Read More
The Shadow knows. There used to be a radio program... Read More
Do you have a nest egg? You know, a place... Read More
Stock investment advice is easy to find. Do you get... Read More
Stocks & Mutual Fund |