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 team near Winnetka ..Minority Report the movie may not be far off if... Read More
Before we get into all the good news out there,... Read More
The Shadow knows. Remember him? It seems a shadow has... Read More
You have heard about a particular mutual fund from a... Read More
You must take the time once a month to review... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
The Shadow knows. There used to be a radio program... Read More
The stock market has been going up for more than... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
Economists know more about how the fragments of society work... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
Intervention. Now don't let that big word scare you. The... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
How do you make money without picking tops and bottoms?I... Read More
Outlined below are some of the advantages and disadvantages of... Read More
It seems that every day I turn on the TV... Read More
Sometime in the third quarter of 1997, someone told me... Read More
Before you buy another car you walk around the lot,... Read More
What does it take to be a stock trader? It... Read More
One of the great "secrets" of successful people is discipline... Read More
I use the P/E ratio as a secondary indicator for... Read More
During the month of January the Dow Jones Industrial Average,... Read More
When will the stock market stop going down and start... Read More
family-safe home cleaners Northbrook ..To begin, you might look at playing the stock market... Read More
This is the continuing story of our two imaginary traders,... Read More
I have a 2-car garage. There are nice shelves on... Read More
You remember (they show it on TV every year) the... Read More
Disclaimer: Please note that I do not necessarily purchase, own,... Read More
I mean it when I say that. While plastic silverware... Read More
I made my very first investment in the stock market... Read More
One of the most believed bits of conventional wisdom from... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
How many times have you said to yourself, "I'd like... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
What a great statement!I just heard someone use it in... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
A common problem I often see when working with living... Read More
There are red lights, green lights, blue lights and spot... Read More
One of the great truisms of Wall Street is "Don't... Read More
It has often been said that there is only two... Read More
Any online investor / trader seeks an excellent off or... Read More
It takes a total mental commitment to the task. It... Read More
On Friday or Saturday evening my wife gets a movie... Read More
How do you make money without picking tops and bottoms?I... Read More
Did you run out to buy that duct tape yet?... Read More
You have decided to buy some stock or mutual funds,... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
Stocks & Mutual Fund |