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
express cleaning service Arlington Heights ..When it comes to 401k's there is an overabundance of... Read More
Do you have a financial planner? Does one of your... Read More
In a previously written article, we expanded the use of... Read More
Forget making a profit; instead focus on the income provided... Read More
The gleam and bright lights of Wall Street lure in... Read More
When it comes to mutual funds, there is a lot... Read More
There is so much involved in developing peak performance, that... Read More
Humpty Dumpty had a great fall and all the King's... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
I have a 2-car garage. There are nice shelves on... Read More
Recently I was invited to appear on a live CNNfn... Read More
This is an extract of an article which was first... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
Jack and Jill went up the hill to fetch a... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
All of the talking heads have been telling us that... Read More
How is it possible that trash Companies are posting less... Read More
You've decided to try your luck at trading stocks or... Read More
Intervention. Now don't let that big word scare you. The... Read More
A PEG ratio cannot be used alone but is a... Read More
You have a lock on your house. You have a... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
Dollar cost averaging is one of the most popular ideas... Read More
I go to the Money Show every year to visit... Read More
It has fallen upon the consumer to make our economy... Read More
tidy up service Arlington Heights ..We learnt the following the hard way! If any of... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
Picture one of those clubs where only the real heavyweights... Read More
You have decided to buy some stock or mutual funds,... Read More
Several times each month I am solicited by various market... Read More
The fight continues to rage among traders who use technical... Read More
You have heard about a particular mutual fund from a... Read More
Ever jumped out of an airplane? It's OK if you... Read More
There is no question that the stock market is being... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Profitable day traders recognize that momentum trading is among the... Read More
If you want one.And I don't recommend any broker with... Read More
Jack and Jill went up the hill to fetch a... Read More
The stock market has been going up for more than... Read More
Stock investment advice is easy to find. Do you get... Read More
Outlined below are some of the advantages and disadvantages of... Read More
All stock trading and investing methods must deal with the... Read More
As a novice trader, you'll often feel the need to... Read More
Right now there doesn't seem to be any "gold fever".... Read More
When purchasing mutual funds we are cautioned to read the... Read More
Most advisors will tell you they can beat the market.... Read More
This is a guide to the different types of mutual... Read More
Recently I was invited to appear on a live CNNfn... Read More
Day trading is all about making buy and sell decisions.... Read More
The stock market has been in an up trend for... Read More
Stocks & Mutual Fund |