| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Roller Coaster
I love roller coasters. The steeper the better. High and fast and curvy. Yahoo! Let's go again. But to get to the drop off point you have a slow grind up. Kinda reminds me of the stock market for the past 3 years. From 1982 to 2000 it was 18 years of up, up and away with very little down. From 2000 it was over the edge, down, down, down with few hints that we are going up. Recently, since October, there has been a respite and we have seen an advance of about 25%. Can we get back to the top? Gosh I hope so, but I have to remember this is a roller coast and it goes back to where it started. Oh, NO! That is OK for amusement rides, but in the stock market that is not amusing. In the roller coaster I expect to be let off where I got on, but in the stock market I want to stay up near the top because if I don't I will lose my money and that is no fun at all. Is there any way I can protect my money when I am near the top and not give it back to go to the bottom where I have to start all over again? The first thing you need to know is whether the stock market is going up or down. Despite what Wall Street tells you this is relatively easy to do. I know because I have been doing it for years. Here is one simple way and won't require any work on your part. In the Investor's Business Daily newspaper there is a Mutual Fund Index. When the price of the index is above the 200-day moving average the market is going up and you will want to be a buyer of stocks and mutual funds. What you buy is up to you. When the price of the index is below the 200-day line you should sell out of everything and be in cash, money market account or bonds. That simple. Anyone can do it. One of the big Wall Street lies is that you cannot time the market. Wrong. If you don't believe it you can prove it to yourself by doing a historical study of what I have just said. Buy as many shares of the S&P500 Index as you can with $10,000 starting back in 1998 and sell the shares each time you have a penetration of the IBD Index. Buy and sell going back as many years as you like. Now compare the amount you have using this method with that same amount if you had just bought it and held it continuously. I won't tell you, but you will be in for a shock. Buy and hold will show a loss while getting off the down roller coaster each time weakness occurred you would have protected your investments. Roller coasters can be fun, but not in the stock market. Al Thomas Author of "If It Doesn't Go Up, Don't Buy It!" Never lose money in the stock market again. http://www.mutualfundmagic.com
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
The Problem With Hedge Funds Are hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds. "Fears Only Enemy Is Action" What a great statement!I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials.Fear is a huge issue with a lot of traders. Buy Low - Sell High Now where have I heard that before? I know. It was my broker. Getting Even I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope". Analysts - Do They Really Know The Stock Market? When you become interested in a stockor mutual fund you can call your broker and hewill send you reports on how the company is doing,what their management is like and what might bethe projected earnings for the company and how theindustry is doing. Great information. Defining a Long-Term Investment in the Stock Market For some "long term" would mean holding a stock position over the weekend. For others, it may mean holding a security for at least 1 year for the purpose of declaring a long-term capital gain, thus saving on taxes. Buy and Hold: How to Perpetuate Your Investment Losses A recent cartoon in my daily newspaper showed two guys sitting in a bar. One is saying to the other: "I did learn something from my broker. The Three Little Pigs Went to the Stock Market Three little pigs went to the market to stockup for the future.The first little pig liked chips so he went tothe DOW market. A Penny for Your Stocks According to Investopedia Inc. the penny stock market has seen phenomenal growth this past decade. Again With the Bubbles? A few years back - it seems like an eternity today - the U.S. Catnip of the Stock Market I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. Bull or Bear? Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that. Wal-Mart: Discount Store, Discounted Stock? As GuruFocus updates the stock buys and sells of gurus, Wal-Mart (WMT), the discount retail giant, stands out as the stock with a high ValueRank (7 out of 10). Just recently, Clipper Fund's James Gipson and T. Using Sector Funds to Construct Diversified Mutual Fund Portfolios 'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds. Smart Day Trading Strategies to Help You Make Money in the Stock Market Stock trading can be a very profitable activity. You can make big amounts of cash in a short period of time. Frog In The Pot You remember the story about the frog that was put into a pot of cold water on the stove. Hewas not concerned. Cash How many people went to a cash position this week? There is no question that this market has scared the bajebers out of many investors, me included. Fortunately, I started going to cash some time ago, but I did give back a substantial amount of my profit. Its A Duck If it walks like a duck, quacks like a duck and looks like a duck it must be a duck.In the stock market if there are more buyers than sellers, more stocks are going up than down and the trend of the general market is higher it must be a bull. Dont Lose All Your Money That sounds like good advice doesn't it? Don't lose all your money.After all what is an investor without funds in the brokerage account? Hint: BROKE!On the subject of investing, this means getting out of a trade when it goes against you. How Covered Calls Turned a Trader Around Sidney felt sick as she looked at her latest OptionsXpress trading statement. In just 8 months, she had managed to turn her $120,000 account balance into less than $70,000.
|
Sponsors: Chicago Paving Contractor | Remanufactured VTL | Religious Statues | Search Engine Specialist
