Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. How're you doing?
If you have been putting it in the stock market you have been watching it get smaller instead of bigger. Your nest egg is becoming an omelet instead of hatching into a wonderful creature. There are places for your money, but for the next few years you will be better off in a simple savings account or money market fund.
Stay away from the big name mutual funds. If you don't believe me have a look at what they have done with your money for the past 3 years. Most have lost about 50%, some 60% and more. Their story now is they are "cheap" and a great buy; they can't go any lower - but they probably will. Mutual funds only work in a bull market and the bull was chased back to the barn in 2000. The bear is now out of his cage and has the run of the premises. When the stock market bubble (let's call it an egg) broke 3 years ago your broker, financial planner, banker had no plan to protect your capital. None of them had ever seen a bear market and none were trained to protect customers' money. Brokers are salesmen and are not there to help you make money even though they think they are. Their employer not once has ever told them the great secret of the market. That secret - SELLING. Having been a member of the exchange and a floor trader for many years I learned how and when to sell. If you didn't you would not last very long. You would be broke.
There is a way to keep your egg from becoming fried, poached or scrambled, but your broker will not tell you. Most of them don't know and their companies don't want you to find out. Selling and putting your cash in a money market account does not make them any money.
There is a thing called a stop loss order for stocks. The simplest one is for 10%, but you can make it any amount you wish - 5%, 15%, whatever. The best time to calculate your stop is Friday or Saturday. If your stock is $40 you figure 10% or $4.00 and you call your broker on Monday morning and tell him to place a Good 'Til Cancelled Sell order at $36. As your stock advances move the stop-price up, NEVER down. This allows the market to tell you when it turns weak rather than you trying to guess when to sell. Your stock might go to $100 before you are stopped out at $90.
Now is the time to protect all your eggs with a big soft stop-loss cushion.
(c) 2005
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 to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.
cleaning help near Mundelein ..When you invest in the stock market for ever-increasing cash... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
The demand for world oil is increasing while world reserves... Read More
Look back over the years and try to remember how... Read More
If you don't know where you are going any road... Read More
For years investors have been taught to look into the... Read More
How many times has this happened to you? You're at... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
Did you know you can make money (and a lot... Read More
In a previously written article, we expanded the use of... Read More
It looks like the market is ready to start up... Read More
1. Do not spread your money too thin.My friend has... Read More
It looks like we have now entered a new bull... Read More
How many times have you said to yourself, "I'd like... Read More
We keep hearing about this bear market and that the... Read More
It is finally catching up with them. The brokerage companies... Read More
The Shadow knows. Remember him? It seems a shadow has... Read More
If you were to find that you had some severe... Read More
Jack and Jill went up the hill to fetch a... Read More
The greatest stock market myth is the idea that investing... Read More
When you become interested in a stock or mutual fund... Read More
To begin, you might look at playing the stock market... Read More
You'd have had to be living on a desert island... Read More
Regardless of the fact that the world's stock markets have... Read More
Having lived aboard a sailboat for 2 years I was... Read More
reliable maid service Wilmette ..The bulls and bears of the stock market are both... Read More
Economists know more about how the fragments of society work... Read More
Congress recently passed another new law that is supposed to... Read More
A colleague of mine just returned from a scuba diving... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
Every successful trader has a winning system. There are of... Read More
Hello Inflation, it has been awhile, I see you on... Read More
I read a comment by a forum member on another... Read More
If you have been dealing with mutual funds for any... Read More
The Shadow knows. There used to be a radio program... Read More
When purchasing mutual funds we are cautioned to read the... Read More
With the stock market stubbornly refusing to settle down and... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
The Surgeon General of the United States says that smoking... Read More
Do you have a financial planner? Does one of your... Read More
What is leverage?Here is a definition of leverage from an... Read More
Regardless of the fact that the world's stock markets have... Read More
A stock market index is a statistical measure of changes... Read More
Have you ever thought of investing? Do you have a... Read More
With all the bad news that has been dumped upon... Read More
Three little pigs went to the market to stock up... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
What are you thinking when it comes to your no... Read More
Are you one of those many people who dread reading... Read More
Stocks & Mutual Fund |