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Stocks & Mutual Funds Information |
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Two for the Money
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 directionsprobably doubling your money every 4 to 5 years. You don't believe it. Follow along and I willprove YOU can do it. You are not going to buy any stock; you arenot going to have any short positions. Both are toovolatile and shorting is too dangerous.Furthermore, you are not going to change yourposition more than once or twice a year andthere will be no commission paid. You will neverhave any big losses and you will have some hugewinners. Forget about that myth of doingresearch; you never need it. There will be timesyou will have one position on for a couple ofyears. Am I getting your attention? You are going to buy hundreds of stocks thathave their prices smoothed out so you can sleepat night. You buy them in mutual funds and thefunds you are buying do not have any commissioncharge at all. You may want to open an accountwith these fund families as they do not havebrokers who try to talk you in or out of yourbuying or selling decisions. Of course, you cando this with a discount broker. I have nofinancial connection with these firms. One isRydex Investments and the second is DALCorporation. Both are on the Internet. The mutual fund symbol for DAL is FUNDXand for Rydex it is RYURX. These are seen on theInternet at bigcharts.com or at your broker'sweb site. Run out a 5-year weekly chart and putin a 40-week Moving Average. This is notcomplicated. If you have a problem ask yourbroker and print out both charts. Look at the RYURX chart and you will seethat the price of the fund moves up through the40-week moving average line on September 20,2000. You buy this fund for $7.32. For the nexttwo years all your friends are losing theirmoney and your fund is erratically moving up andup, When the price finally turns down below the40-week moving average line you sell out onApril 21, 2003 at $11.88 for a profit of $4.56per share or 62%. The stock market went in thetank and you made money. Now you are in cash in a money market accountand the next buy signal occurs a couple of weekslater as that upward moving 40-week movingaverage has started up and is penetrated by theFUNDX mutual fund price on May 5, 2003 at$22.88. As of this date (7/4/05) you are stillholding the shares now worth about $35.00 withan unrealized profit of 53%. In less than 5years you are now ahead more than 148% (notcounting taxes). If you have started with$10,000 in 2000 you would now have $24,880. If you have the discipline to follow thissimple method using just 2 funds that are onlyinvested one at a time you can become amillionaire. These are two funds for the money. Get ready - GO! Copyright 2005 Al Thomas' best selling book, "If It Doesn'tGo Up, Don't Buy It!" has helped thousandsof people make money and keep their profits withhis simple 2-step method. Read the first chapterand receive his market letter for 3 months atwww.mutualfundmagic.com and discover why he'sthe man that Wall Street loves to hate.
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