I constantly hear the talking heads on CNBC-TV, the radio and other places talking about THE market. Of course, they mean the stock market which actually now is world wide and no longer just concentrated in New York. To every New Yorker New York is the center of the world from which radiates all knowledge and everything else worthwhile.
The stock market is thousands of companies world wide. Those that have been listed with the New York Stock Exchange must meet strict requirements as to the capitalization of the company and the price of their stock as well as its ability to be traded so there must be many thousands of shares and large numbers of shareholders.
The trick, and I call it that even though it isn't, is to be able to tell when it is in an up trend and when it is going down. If you knew this you could not only make a lot of money but could keep from giving back profits when you have them. When the market is going up you want to own stocks and mutual funds because 60% of a move in stocks is due to the general direction of the overall market.
When I first invested I made and lost like everyone else until I learned to listen to the voice of Mr. Market. Because we are so overwhelmed with useless data from brokers, newspapers, magazines, TV, friends and other nefarious sources we haven't taken the time to learn the language of the market. And it isn't that complicated. Mr. Market will tell you all you need to know.
Most of us don't have time to be pouring over the financial news every day because we have a life that requires our attention, but if you are willing to give about 15 minutes each week you can learn the language of Mr. Market. Day trading language is not where it's at; however, the long term language is very easy. You simply plot a 200-day moving average of the S&P500 Index and when the index price is above the 200-DMA you buy and when it is below you sell and put your money in a money market fund.
Now I know that seems too simple, but it isn't. You can easily check it out with a historical study on many Internet web sites. I use www.bigcharts.com by clicking on the red Interactive box and then following the instructions in the left hand column. With this simple method you will always be on the right side of the market.
The mutual funds in this simple plan only need to be checked once each week and sometimes only monthly. If you have a 401K you should be able to transfer to a money market fund when a sell signal is given with no commission charges. It will be a rare occasion if you do this twice a year.
This not a get-rich-quick scheme. It will allow you to keep most of the profits you have made during a bull market and protect your funds during a bear phase.
Al Thomas
Author of "If It Doesn't Go Up, Don't Buy It!"
Never lose money in the stock market again.
http://www.mutualfundmagic.com
executive chauffeured services Bradford .. Madison to Airport carThe Bollinger Band theory is designed to depict the volatility... Read More
Spread trading is a technique that can be used to... Read More
If you have a pension plan at work you will... Read More
In one of my previous articles (Investing in the stock... Read More
"If you don't know where you are going, any road... Read More
Regardless of the fact that the world's stock markets have... Read More
A PEG ratio cannot be used alone but is a... Read More
It is difficult to make money in a bull market,... Read More
Every broker and financial planner will tell you that you... Read More
Since I can remember, and that's a long time ago,... Read More
You may have wondered why your mutual funds have been... Read More
A stock market index is a statistical measure of changes... Read More
Before you embark upon a journey of trading stocks or... Read More
What is the Series 7 Exam? If you... Read More
If you were to find that you had some severe... Read More
The trading method you employ to approach the stock market... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
Never lose money in the stock market again. Yeah, I... Read More
You probably have been told that options are risky. Even... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
Checked your 401K lately? Going back to about a year... Read More
Options trading can increase the profits you make when trading... Read More
Have you seen all those big full page ads for... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
O'Hare Chicago prom limo ..I go to the Money Show every year to visit... Read More
If you have a pension plan at work you will... Read More
Buy high and sell low -- It's not a typo.Millions... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
Every broker and financial planner will tell you that you... Read More
What account size do I need?How much money can I... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
Unfortunately, most of you who are reading my column are... Read More
What does it mean to short a stock?This means that... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
Stock trading can be a very profitable activity. You can... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
The higher the market goes the more confusing are the... Read More
The Bollinger Band theory is designed to depict the volatility... Read More
One of the great "secrets" of successful people is discipline... Read More
If you don't know where you are going any road... Read More
The stock market has been going up for more than... Read More
Everyone who invests in the stock market wants to be... Read More
Mutual funds were moderately successful in creating a presence in... Read More
Before you buy another car you walk around the lot,... Read More
One of the great "secrets" of successful people is discipline... Read More
For some "long term" would mean holding a stock position... Read More
Reach in your pocket and take out that big roll... Read More
Index Fund Trading can be one of the most profitable...or... Read More
We all know the expression, "My country, right or wrong",... Read More
Stocks & Mutual Fund |