Frog In The Pot

You remember the story about the frog that was put into a pot of cold water on the stove. He was not concerned. Someone lit the burner and the water began getting warm, the frog was very comfortable and as the water became warmer he was so relaxed and complacent that he fell asleep ? never to awaken.

Mr. Frog reminds me of today's stock market investors and that includes all folks with IRAs, 401Ks and the like. Stocks have been slowly rising for the past year and a half (the water is becoming warmer and warmer) and no one is paying any attention to his investment positions. The market is becoming overheated and many investors are about to become boiled. Too many are swimming fat and happy in the increasing warmth with no thought of exit.

Currently the long term market trend is up so complacency reigns supreme. It is doing exactly the same as in 2000. When 2002 ended we had a surplus of boiled frogs. A smart frog will not be lulled to sleep and will have a plan to jump out of the pot. A frog without a plan plans to be frog soup.

There are many ways for the frog to escape and there are many ways for investors to retain their profits or at least not lose their money the next time the market heads down. It will if past performance is any guide to futures results. Any plan to jump out is better than no plan at all.

Whether you own stocks, mutual funds or ETFs (Exchange Traded Funds) you can set a limit as to how much you are willing to lose from this point (that's now, today). Any fool (frog) can buy, but it is the wise man (frog) who knows how to sell (escape the pot).

If you want to have money for retirement you must protect your capital from loss with a risk management strategy. First protect your principle and then protect the profits you have made on the recent stock market advance. It is not difficult to do.

With stocks and ETFs you can place an Open Stop Loss Order with your broker or financial planner. He won't like this, but it is your money not his. Don't let him talk you out of it. For regular mutual funds you must have a mental stop and when that price is hit you call your broker (he won't call you) or the fund directly to tell them to transfer your funds to a Money Market account. Cash is a position.

If you are not familiar with stop loss orders you can find books in your library and there are hundreds of articles on the Internet. See some of my previous articles on my web site.

The water is heating up. Don't fall asleep and become a poor frog.

Al Thomas' best selling 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 and receive his market letter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005

disinfecting cleaning services Winnetka ..

In The News:

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

FoloToy restored sales of its AI teddy bear Kumma after a weeklong suspension following safety group findings of risky and inappropriate responses to children.

Threat intelligence firm Synthient uncovers one of the largest password exposures ever, prompting immediate security recommendations.

Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.

Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.

Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Frog In The Pot

Stocks & Mutual Fund