How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.
Wall Street has mastered this move even beyond the wildest dreams of Houdini. Investors have become so mesmerized by the smoke and mirrors that they believe the large brokerage houses are telling them the truth.
One of their master distractions has you believing that research is necessary to be able to pick a winning stock or mutual fund. All research is facts and figures which is nothing more than disinformation. Think. That long report by some analyst came from sources available to anyone and everyone, therefore, it is worthless. If everyone knows it then all that information is already reflected in the current price of the stock.
Just because you have information and it seems so good that doesn't mean the equity price is going to go up. Those beautiful pink, green and yellow tout sheets sent to you by some broker have you looking in the wrong place just as the magician does while he is picking your pocket. Sound familiar?
The annual report is a beautiful document. Slick paper and in full color, but those footnotes are hard to read. You know the old saying: "they give it to you in the big type and take it away in the small type". More of the magician's tricks. Did it occur to you that much of the content of the annual report is a year old? Is that going to tell you if the stock is going to go up tomorrow or next week?
Another distraction by the master magician is the prospectus. I have written these so I know how they can be manipulated. The most important thing to remember is they were not written for the investor. They are written so some Dilbert lawyer in his cubicle at the SEC in Washington will see that it meets all the regulations. There is practically no difference in the content of a winner and a loser.
So much of what comes out of Wall Street is sleight of hand and smoke and mirrors. You must stop and ask yourself, "Is knowing this going to make me any money?" In all likelihood it won't. Almost every analyst recommendation put out by brokerage companies is already ancient history and of no value. The Securities and Exchange Commission (SEC) in Washington is now investigating allegations that analysts have become salesmen for their brokerage companies and are told not to issue negative reports on any company no matter how poorly they perform.
Become aware of the magician's tricks and watch out for that other hand he has in your pocket.
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
car service from Midway Burlington .. Lockport Chicago limo O’HareIt takes a total mental commitment to the task. It... Read More
Has your broker been calling you recently with the "great... Read More
Most advisors will tell you they can beat the market.... Read More
It depends on your level of understanding of the market... Read More
For the last few weeks we have seen the stock... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
If you go to Haiti or other places in the... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
As a novice trader, you'll often feel the need to... Read More
Every day I hear from the "experts" on CNBC-TV and... Read More
The trash business in its efforts to cook their books... Read More
For some "long term" would mean holding a stock position... Read More
When the stock market is going up and all your... Read More
People are constantly asking me why is the stock market... Read More
If you are going to be a winner in the... Read More
Look back over the years and try to remember how... Read More
In his wonderful book, 'Multiple Streams of Income', best selling... Read More
Three little pigs went to the market to stock up... Read More
I often play a little game with myself when I... Read More
Before we get into all the good news out there,... Read More
You'd have had to be living on a desert island... Read More
Intervention. Now don't let that big word scare you. The... Read More
"If you don't know where you are going, any road... Read More
One of the basic laws of physics states that a... Read More
The Law of Chaos is the theory of random unpredictable... Read More
Granger limo Chicago ..The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
Several times each month I am solicited by various market... Read More
The stock market has been in an up trend for... Read More
Are you paying any attention to your retirement savings? Do... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
During our travel down life's path we come to many... Read More
One of the main reasons many of us get into... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
Before you buy another car you walk around the lot,... Read More
At some time in your life you have been on... Read More
A common problem I often see when working with living... Read More
Because there are so many stocks that are NOT paying... Read More
I am sure that if you have a brokerage account... Read More
Profitable day traders recognize that momentum trading is among the... Read More
Forget making a profit; instead focus on the income provided... Read More
There is nothing more exciting than finding an undervalued stock... Read More
You probably know the story of Sherlock Holmes and the... Read More
The stock market is very unstable at this time going... Read More
Unfortunately, most of you who are reading my column are... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
Alfred Winslow Jones started hedge funds in 1949. He was... Read More
How do you make money without picking tops and bottoms?I... Read More
Every day in any financial publication you will find the... Read More
Stocks & Mutual Fund |