Duct Tape

Did you run out to buy that duct tape yet? Don't forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know - things to get better so you can resume your normal life style.

While you were waiting did you happen to notice what is happening to your investment portfolio, your retirement account? For the past 3 years it has needed duct tape and plastic sheeting to protect it from the poison gas coming from Wall Street. The gases, otherwise known as hot air, are the news flashes the brokers have been telling you. Surely you have heard - "the market always comes back", "hang in there", "you are in for the long term" and other such noxious odors have paralyzed investors to keep them from selling. There was one breath of fresh air you have not heard from your broker and is the one bit of pure oxygen that could have saved your account. Listen carefully and you might hear - "SELL".

It is a word hardly ever uttered on Wall Street, but one which you should add to your vocabulary if you ever plan to make a profit in the stock market. Brokerage companies don't want you to sell because they don't make any money with your account if you are in a money market fund. When your stock or mutual fund started down did you get a call? Even when a stock loses 80% or more of its value they then change their recommendation from Buy to Hold - and you know where you are holding it.

Any fool can buy, but it takes a wise man to sell. Bernard Baruch, one of the most famous traders of all time, said, "I always sell too soon". He was enjoying himself reading a paper on a park bench while stocks were crashing in 1929. The DOW lost 89% of it value. We have not been that unfortunate - yet. However, the NASDAQ has dropped almost 80%. If you owned any of those tech stocks and did not have a trailing stop-loss order you have given back all your profit.

It takes more than duct tape to protect yourself from death and destruction and that goes double for the information from brokers and financial planners. If they have kept you in the market these past 3 years with the Buy and Hold mantra don't you think it is time you plastered some duct tape on them so you can escape that bad gaseous advice? You might not think yourself to be knowledgeable about investing, but surely you would have had enough sense to sell when a stock or fund loses 20, 30, 40% or more of its value. At 50% loss it means it has to go up 100% to get to "even". You don't want to get even; you want to get rich.

Before that poison gas from Wall Street completely kills your account get some fresh air - SELL.

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.

Copyright 2005

al@mutualfundstrategy.com; 1-888-345-7870

---

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

Staying Sane While Wall Street Crashes

Everybody is riding the Wall Street Roller coaster. Even if... Read More

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading futures.... Read More

Bad News is Good News

For weeks, no, months we have been bombarded with nothing... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

Buy and Hold: How to Perpetuate Your Investment Losses

A recent cartoon in my daily newspaper showed two guys... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

China Syndrome

There has been great condemnation recently because China has been... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

Trade Stocks for Real

I read a comment by a forum member on another... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Hill of Hope

Just about now everyone is confused as to which way... Read More

Is The Bear In The Cage?

For the last few weeks we have seen the stock... Read More

Cash

How many people went to a cash position this week?... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Dont Buy Stocks based on P/E Ratio alone

I use the P/E ratio as a secondary indicator for... Read More

The Stock Market - How Just One Question Will Tell You All You Need To Know About Your Stock Broker

Last time we looked at the real performance of the... Read More

Dividend Reinvestment Plans: Investing on Automatic Pilot

If you're like many investors who squander those small dividend... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Bargain Basement - Finding Stocks That Go Up

Have you been listening to the talking heads on CNBC-TV?... Read More

The Information Age

It is wonderful to be alive in the information age.... Read More

Box Of Chocolates

Ever have one of those sample boxes of candy? Each... Read More

Mutual Funds are Dead

You may have wondered why your mutual funds have been... Read More

The Stock Market - Part 1: Believe It Or Not, Its Always Been Your Best Friend And Always Will Be

Regardless of the fact that the world's stock markets have... Read More

How to Find Value in No Load Mutual Fund Investing

What are you thinking when it comes to your no... Read More