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
professional maid services Park Ridge ..Let's hope you did not have any of the Enron... Read More
Minority Report the movie may not be far off if... Read More
We need a rabbit!This was a pretty horrible week for... Read More
Should the market turn against you, it is important that... Read More
In November of 2000 when the NASDAQ was trading at... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
There has been great condemnation recently because China has been... Read More
I often play a little game with myself when I... Read More
We have two candidates for president that have really different... Read More
The trash business in its efforts to cook their books... Read More
The stock market has not been very kind to your... Read More
If you have been watching the stock market at all... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
Now that you have some money burning a hole in... Read More
When purchasing mutual funds we are cautioned to read the... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
How do you invest? What do you really pay? At... Read More
Hello Inflation, it has been awhile, I see you on... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
Suppose your position has made a big move and you... Read More
Do you have a financial planner? Does one of your... Read More
Right now there doesn't seem to be any "gold fever".... Read More
Stock investment advice is easy to find. Do you get... Read More
There is a famous cliff on the ocean in Acapulco... Read More
With the stock market stubbornly refusing to settle down and... Read More
cleaning lady near Lincolnshire ..If you go to Haiti or other places in the... Read More
You have a lock on your house. You have a... Read More
The fight continues to rage among traders who use technical... Read More
As a novice trader, you'll often feel the need to... Read More
Let's assume that you want to make some serious money... Read More
Stock trading remains a very competitive field and the stock... Read More
With the stock market stubbornly refusing to settle down and... Read More
Investors who exclusively use broadly diversified, no load mutual funds... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
When you invest in the stock market for ever-increasing cash... Read More
I would like to share with the reader an article... Read More
Jack and Jill went up the hill to fetch a... Read More
Do you have a nest egg? You know, a place... Read More
You have decided to buy some stock or mutual funds,... Read More
Wall Street has been preaching for years and years to... Read More
People are constantly asking me why is the stock market... Read More
Ever have one of those sample boxes of candy? Each... Read More
Today we are inundated with tons of information about the... Read More
Every Wall Street analyst, financial planner and broker will tell... Read More
Has your broker been calling you recently with the "great... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
As one of my regular readers you know I have... Read More
Should the market turn against you, it is important that... Read More
Are you attracted to the idea of being in control... Read More
Ever jumped out of an airplane? It's OK if you... Read More
Stocks & Mutual Fund |