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
limo prices to midway Crystal Lake west of Randal .. Lockport Chicago limo O’HareI know there are a lot of you out there... Read More
As an investor you will want to check out any... Read More
Congress recently passed another new law that is supposed to... Read More
You have a lock on your house. You have a... Read More
For years investors have been taught to look into the... Read More
I made my very first investment in the stock market... Read More
If you have a pension plan at work you will... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
Look back over the years and try to remember how... Read More
The following are a list of nine things you want... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
What does it mean to short a stock?This means that... Read More
As I have said many times before in this column... Read More
Alfred Winslow Jones started hedge funds in 1949. He was... Read More
Being wrong is OK, but let's not carry it to... Read More
Just about now everyone is confused as to which way... Read More
Everyone who follows the financial news has heard of mutual... Read More
The greatest stock market myth is the idea that investing... Read More
Having lived aboard a sailboat for 2 years I was... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
For some "long term" would mean holding a stock position... Read More
When it comes to mutual funds, there is a lot... Read More
Any online investor / trader seeks an excellent off or... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
taxi o'hare Auburn ..In his wonderful book, 'Multiple Streams of Income', best selling... Read More
How do you invest? What do you really pay? At... Read More
Recently I was invited to appear on a live CNNfn... Read More
At some time in your life you have been on... Read More
A few years back ? it seems like an eternity... Read More
The broker told me not to sell because the mutual... Read More
I am taking the time to help others learn the... Read More
The Shadow knows. There used to be a radio program... Read More
When it comes to 401k's there is an overabundance of... Read More
The big bad bear is stirring again. So far he... Read More
The demand for world oil is increasing while world reserves... Read More
Reach in your pocket and take out that big roll... Read More
Are you attracted to the idea of being in control... Read More
Did you know you can make money (and a lot... Read More
The date October 13, 2000 will forever be embedded in... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
Investing in long-term financial vehicles give you the most gains... Read More
Intervention. Now don't let that big word scare you. The... Read More
Over the past few months, several investment professionals have brought... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Hello Inflation, it has been awhile, I see you on... Read More
One of the most believed bits of conventional wisdom from... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
Trading is a fascinating activity.There are so many layers to... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Stocks & Mutual Fund |