Look back over the years and try to remember how many different stocks and mutual funds you have owned. Suppose you had owned only 2 different equities during that entire time. One when the market was going up and the other when the market was going down.
And you always make money in both directions probably doubling your money every 4 to 5 years.
You don't believe it. Follow along and I will prove YOU can do it.
You are not going to buy any stock; you are not going to have any short positions. Both are too volatile and shorting is too dangerous. Furthermore, you are not going to change your position more than once or twice a year and there will be no commission paid. You will never have any big losses and you will have some huge winners. Forget about that myth of doing research; you never need it. There will be times you will have one position on for a couple of years. Am I getting your attention?
You are going to buy hundreds of stocks that have their prices smoothed out so you can sleep at night. You buy them in mutual funds and the funds you are buying do not have any commission charge at all. You may want to open an account with these fund families as they do not have brokers who try to talk you in or out of your buying or selling decisions. Of course, you can do this with a discount broker. I have no financial connection with these firms. One is Rydex Investments and the second is DAL Corporation. Both are on the Internet.
The mutual fund symbol for DAL is FUNDX and for Rydex it is RYURX. These are seen on the Internet at bigcharts.com or at your broker's web site. Run out a 5-year weekly chart and put in a 40-week Moving Average. This is not complicated. If you have a problem ask your broker and print out both charts.
Look at the RYURX chart and you will see that the price of the fund moves up through the 40-week moving average line on September 20, 2000. You buy this fund for $7.32. For the next two years all your friends are losing their money and your fund is erratically moving up and up, When the price finally turns down below the 40-week moving average line you sell out on April 21, 2003 at $11.88 for a profit of $4.56 per share or 62%. The stock market went in the tank and you made money.
Now you are in cash in a money market account and the next buy signal occurs a couple of weeks later as that upward moving 40-week moving average has started up and is penetrated by the FUNDX mutual fund price on May 5, 2003 at $22.88. As of this date (7/4/05) you are still holding the shares now worth about $35.00 with an unrealized profit of 53%. In less than 5 years you are now ahead more than 148% (not counting taxes). If you have started with $10,000 in 2000 you would now have $24,880.
If you have the discipline to follow this simple method using just 2 funds that are only invested one at a time you can become a millionaire. These are two funds for the money.
Get ready ? GO!
Copyright 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 and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street loves to hate.
Batchtown Chicago prom limo .. Lockport Chicago limo O’HareIt is wonderful to be alive in the information age.... Read More
Ever turn down a street, get half way and suddenly... Read More
Are you paying any attention to your retirement savings? Do... Read More
What a great statement!I just heard someone use it in... Read More
Do you have a nest egg? You know, a place... Read More
Do you have a financial planner? Does one of your... Read More
Stock investment advice is easy to find. Do you get... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
This is an extract of an article which was first... Read More
The stock market has been going up for more than... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
I have watched my cat play with a bag of... Read More
If you're a normal human being, your need to feel... Read More
When the stock market is going up and all your... Read More
If you don't know what a Roth IRA is then... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
If you haven't heard of the technical indicator with the... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
Checked your 401K lately? Going back to about a year... Read More
I feel that an investment strategy in the stock market... Read More
We have two candidates for president that have really different... Read More
You remember the story about the frog that was put... Read More
Humpty Dumpty had a great fall and all the King's... Read More
shuttle from Midway Munster are ..If you have been dealing with mutual funds for any... Read More
As I have said many times before in this column... Read More
How often have you come across an advertisement or e-mail... Read More
Before you buy another car you walk around the lot,... Read More
If you want one.And I don't recommend any broker with... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Intervention. Now don't let that big word scare you. The... Read More
It has often been said that there is only two... Read More
When you become interested in a stock or mutual fund... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
A common problem I often see when working with living... Read More
Analyzing growth stocks is an important focus for any investor.... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
It is commonly reported that the stock market averages about... Read More
There has been great condemnation recently because China has been... Read More
A 'stock option' is a contract between two parties giving... Read More
I mean it when I say that. While plastic silverware... Read More
Options trading can increase the profits you make when trading... Read More
What does it mean to short a stock?This means that... Read More
Let me start by saying that...Most online brokers do not... Read More
So you're started trading, you bought some positions with your... Read More
Any online investor / trader seeks an excellent off or... Read More
Two weeks ago I wrote about what the Securities and... Read More
After the publication of the first part of this two... Read More
Stocks & Mutual Fund |