Dispelling Illusions of the Stock Market

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

Batchtown Chicago prom limo .. Lockport Chicago limo O’Hare
In The News:

A virtual private network can help ensure your information remains security and your privacy remains intact. Kurt the CyberGuy explains.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Artificial intelligence-based cameras are giving air defense operators unprecedented capabilities in monitoring and protecting airspace.
Apple's iOS 18.1 Inactivity Reboot automatically reboots your iPhone if it hasn't been used or unlocked for more than three days, providing better data protection.
An inventor designed rooftop solar panels for a Tesla that draws solar energy while the car is parked, adding travel mileage without plugging in.
There are currently no laws governing what artificial intelligence can and cannot do with the information it gathers; here are 10 things to avoid telling AI chatbots to keep yourself safe.
A credit union with over 240,000 members recently revealed it was targeted by cybercriminals, resulting in a data breach that was part of a two-month attack by hackers.
Scammers have become skilled at creating convincing fake websites that can easily fool unsuspecting users. The CyberGuy offers tips to protect yourself.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
CAPTCHAs, which are used by websites to confirm whether users are people or bots, are harmless, but hackers are using them to infect PCs with malware.
Hackers recently leaked personal information of about 500,000 Americans and stole patient medical records that included lab results and insurance details.
The holiday season sees a rise in mobile shopping scams. Tech expert Kurt “CyberGuy" Knutsson helps you learn how to stay safe.
Tech expert Kurt “CyberGuy" Knutsson says a VPN enhances online banking security by encrypting data and protecting privacy.
Beware of these six sneaky holiday scams. Tech expert Kurt “CyberGuy" Knutsson gives you tips to avoid falling victim.
Tech expert Kurt “CyberGuy" Knutsson reveals how to securely back up and factory reset your Android to protect your privacy and data.
Artificial intelligence is making life easier for cybercriminals, allowing them to create elaborate scams to trick people. Kurt the Cyberguy explains how to protect yourself.
Cut through all the digital clutter and delete multiple emails from your Android simultaneously. Kurt the CyberGuy explains how it's done.
Tips to prevent your holiday decorations from being stolen
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt "CyberGuy" Knutsson lays out the immediate steps you should take if your phone has been hacked and your personal information becomes vulnerable.
Fraudsters are sending people bogus invoices through PayPal as part of a sneaky scam that is going around; here's how to protect yourself from being fooled.
A former Colgate-Palmolive employee was shocked to discover $750,000 had been drained from her 401(k) account. "CyberGuy" offers tips on how to prevent identity theft.
Electric vehicle maker Harbinger recently showed its electric delivery truck can handle icy roads with agility and stability in winter.
To make the busiest time of year more manageable, here are some tricks for tracking your packages, taking quality family photos and curating the perfect Christmas playlist.
Kurt "CyberGuy" Knutsson explains how to keep your online Amazon gift purchases a secret from loved ones or friends this holiday season.

KISS Formula

There are formulas for just about everything, but it has... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

Commoditizing the world

Let's discuss commodities; with the latest Enron situation, it is... Read More

Bollinger Bands Strategies

The Bollinger Band theory is designed to depict the volatility... Read More

Its A Bull, Its A Bear, Its Suptertrader!

The higher the market goes the more confusing are the... Read More

Gold Fever

Right now there doesn't seem to be any "gold fever".... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Stocks: Understand What You Buy!

"There is nothing more frightful than ignorance in action!" Johann... Read More

Stock Market Education; Day Trading for Beginnners; How to Pick Stocks

The trading method you employ to approach the stock market... Read More

Selling

The stock market has been going up for more than... Read More

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

Wall Street Paradigm

In 1960 an engineer working for a watch company in... Read More

Buy and Hold: How to Perpetuate Your Investment Losses

A recent cartoon in my daily newspaper showed two guys... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market

In a previously written article, we expanded the use of... Read More

VIX

No, this is not a symbol for some Latin number.... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

401K-itis

Are you one of those many people who dread reading... Read More

Value Investing: Selecting From The Bargain Bin

Picking a beaten-down stock requires a different kind of selection... Read More

shuttle from Midway Munster are ..