The Law of Chaos is the theory of random unpredictable action applied to the cosmos, mathematics, mechanics, almost everything. Those who believe it will definitely think the stock market is in chaotic state at this time. Don't you believe it.
When I was a floor trader people would ask me how do you make sense of what is going on with all that yelling and arm-waving? To the uninitiated it does look turbulent, but to those who are in the middle it is understandable and orderly. It took me a while before it became "normal".
Your broker at this time may be telling you that such-an-such stock is a great "value" because it has come down so far. Don't believe this Wall Street myth. It will only cost you money. Cash is your best position right now. Look at the pattern as shown on a stock chart.
When the trend is down never try to pick the bottom. Here are two glaring examples. Cisco went to $82. When it came down was Cisco a great buy at $65? Did your broker call you? Now it is $11 and headed for $?? Lucent looked like a buy at $60 and now it is 77 cents down from 77 dollars! Is this chaos or is there an orderly pattern to this mess? The lesson here is never buy any stock or mutual fund that is in a downtrend and if you own something that is, sell it immediately.
To those of us who have studied the price patterns of individual stocks and market indexes we see a road map (stock chart) of what has happened and have a good idea where it is going. It is not random. Many brokers will tell you this can't be done and that charts tell you nothing. That is because they have not taken the time to learn their trade. Technical analysis is more important than fundamental analysis. Over any period of time a good technical analyst will beat the shirt, pants, underwear and socks off a fundamental analyst because fundamentals don't give timing. Fundamentals are the background for a major move.
There is an orderly pattern in all this seeming chaotic price action of the stock market. To become a serious trader and money-maker you must study it in order to make it a useful tool for you investments, Otherwise, you are at the mercy of brokers, financial planners, bankers and other "experts" who know as little as you.
Copyright Albert W. Thomas All rights reserved Author of "If It Doesn't Go Up, Don't Buy It!"
www.mutualfundmagic.com; email to al@mutualfundmagic.com
house refresh service Lincolnshire ..When you stand on the ocean shore and watch the... Read More
One of the things people are always asking me is... Read More
I often hear from people, "I don't trade. I invest.... Read More
Investing in long-term financial vehicles give you the most gains... Read More
When it comes to stock market trading it PAYS to... Read More
It has fallen upon the consumer to make our economy... Read More
It depends on your level of understanding of the market... Read More
We are already in it, but you can't see it.... Read More
For weeks, no, months we have been bombarded with nothing... Read More
Trading is a fascinating activity.There are so many layers to... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
When we go to the circus we see a trapeze... Read More
During the day I watch CNBC-TV, the stock market channel.... Read More
What is the Series 7 Exam? If you... Read More
Should the market turn against you, it is important that... Read More
Before you embark upon a journey of trading stocks or... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
The stock market often closes a week in the middle... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Let's say you are interested in this one company. You... Read More
Regardless of the fact that the world's stock markets have... Read More
It is commonly reported that the stock market averages about... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
When will the stock market stop going down and start... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
licensed cleaning services Lake Forest ..Recently I was invited to appear on a live CNNfn... Read More
Several times each month I am solicited by various market... Read More
If you have been watching the stock market at all... Read More
Today we are inundated with tons of information about the... Read More
When you become interested in a stock or mutual fund... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
There can't be many traders who haven't at least considered... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
When purchasing mutual funds we are cautioned to read the... Read More
For the last few weeks we have seen the stock... Read More
I mean it when I say that. While plastic silverware... Read More
There are formulas for just about everything, but it has... Read More
The greatest stock market myth is the idea that investing... Read More
As a novice trader, you'll often feel the need to... Read More
In his wonderful book, 'Multiple Streams of Income', best selling... Read More
One of the great "secrets" of successful people is discipline... Read More
If you go to Haiti or other places in the... Read More
If you've ever flipped on the television to CNN Financial... Read More
The fight continues to rage among traders who use technical... Read More
Every successful trader has a winning system. There are of... Read More
The bulls and bears of the stock market are both... Read More
As one of my regular readers you know I have... Read More
What the heck am I talking about?It is often said... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
Stocks & Mutual Fund |