Ever done any whitewater rafting or canoeing? Long periods of tranquil river followed by short periods of terror. Suddenly the water grips your vessel and you are pushed and shoved by massive currents over which you have no control. Missing boulders you paddle as hard as you can. You almost lose everything and think to yourself, "Why didn't I portage that last rapid?"
Remind you of the stock market lately? Nice steady up moves of equity growth in your portfolio followed by gut-wrenching waterfalls when the market takes back most of your gains.
You got into that canoe because you wanted to. Did you have any lessons on how to control the ride or when it might be a good idea to portage? Maybe you didn't or maybe you got the wrong lesson. You didn't want to crash or drown.
The same goes for the stock market. You might have read a book on how to invest your money or worse yet you might have received information from a broker or financial planner whose reason for helping you is based on commission. If you are a small account don't plan on getting much "help".
Brokers are not taught how to make money. They are taught to make recommendations that will not get them sued if you lose your money. The basic Wall Street tenet of Buy and Hold is totally wrong. Unfortunately, even the brokers believe it. When you have a stock or mutual fund that is going down they never tell you to sell ? "you are in for the long haul". WRONG. Of 33,000 stock recommendations last year only 127 were "sells". After stocks have declined 50% they tell you to "hold". You know where. Brokerage companies do not want to offend the corporate executives and mutual fund managers; they seem to have forgotten who is paying them.
When you are whitewater rafting you had better know how to guide yourself through or around the rapids to the calm water. When you invest in the market you must learn the first basic rule ? protect your capital ? so you won't crash and lose all you have worked for. In canoeing it means learning when to paddle or portage. With investing it means learning when to sell, be in cash and out of the market. Know when to hold 'em, know when to fold 'em.
Al Thomas' 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 at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
1-888-345-7870; http://www.mutualfundmagic.com
For the year 2000 we have seen hundreds of mutual... Read More
The World Bank claims that some two billion of the... Read More
During the month of January the Dow Jones Industrial Average,... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
Economists know more about how the fragments of society work... Read More
I have been trading for several decades and was an... Read More
Dollar cost averaging is one of the most popular ideas... Read More
When an individual investor wants to roll up his sleeves... Read More
It looks like we have now entered a new bull... Read More
On the 40 year journey through the turmoil of a... Read More
There has been great condemnation recently because China has been... Read More
The stock market often closes a week in the middle... Read More
It is finally catching up with them. The brokerage companies... Read More
What is leverage?Here is a definition of leverage from an... Read More
Every day in any financial publication you will find the... Read More
There are many good penny stock investments available, which could... Read More
That sounds like good advice doesn't it? Don't lose all... Read More
Has your broker been calling you recently with the "great... Read More
The single most expensive stock market trades are those made... Read More
There are formulas for just about everything, but it has... Read More
Professional stock options traders use the term lean to refer... Read More
On Friday or Saturday evening my wife gets a movie... Read More
Mutual funds were moderately successful in creating a presence in... Read More
Recently I was invited to appear on a live CNNfn... Read More
As I have said many times before in this column... Read More
shuttle from Midway Munster are ..Four blind men were asked to give a description of... Read More
Money: the most charged word in the planet. It means... Read More
I am sure that if you have a brokerage account... Read More
Among the largest forces that affect stock prices are inflation,... Read More
If you don't know what a Roth IRA is then... Read More
We need a rabbit!This was a pretty horrible week for... Read More
If it walks like a duck, quacks like a duck... Read More
When it comes to mutual funds, there is a lot... Read More
Ever have one of those sample boxes of candy? Each... Read More
Where is the beef? Or maybe it should be where... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
For the year 2000 we have seen hundreds of mutual... Read More
What does it take to be a stock trader? It... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
If you are going to be a winner in the... Read More
Picture one of those clubs where only the real heavyweights... Read More
Everyone who invests in the stock market wants to be... Read More
There is a famous cliff on the ocean in Acapulco... Read More
Financial markets provide their participants with the most favorable conditions... Read More
I have a 2-car garage. There are nice shelves on... Read More
If you are fed up with early redemption charges and... Read More
Have you bought any mutual funds this year or late... Read More
The Surgeon General of the United States says that smoking... Read More
Have you ever thought of investing? Do you have a... Read More
Stocks & Mutual Fund |