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; al@mutualfundstrategy.com
![]() |
|
![]() |
|
![]() |
|
![]() |
Is really not as important as to how you invest... Read More
You probably have been told that options are risky. Even... Read More
This article describes the model of a natural relationship between... Read More
Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
I go to the Money Show every year to visit... Read More
There is so much involved in developing peak performance, that... Read More
Has your broker been calling you recently with the "great... Read More
Options trading can increase the profits you make when trading... Read More
Did you run out to buy that duct tape yet?... Read More
Just about now everyone is confused as to which way... Read More
There can't be many traders who haven't at least considered... Read More
The stock market is very unstable at this time going... Read More
Do you have a nest egg? You know, a place... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
As I have said many times before in this column... Read More
If you have been dealing with mutual funds for any... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
Trading is a fascinating activity.There are so many layers to... Read More
With all the bad news that has been dumped upon... Read More
Sometime in the third quarter of 1997, someone told me... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
Before you embark upon a journey of trading stocks or... Read More
There are many good penny stock investments available, which could... Read More
Stock trading can be a very profitable activity. You can... Read More
Before they go over the cliff to their destruction these... Read More
The gleam and bright lights of Wall Street lure in... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
Have you ever thought of investing? Do you have a... Read More
Every day I hear someone on CNBC proclaim that "this... Read More
What account size do I need?How much money can I... Read More
With the stock market stubbornly refusing to settle down and... Read More
This is a rather simple strategy with which I am... Read More
An investor can find and research the best stock on... Read More
In one of my previous articles (Investing in the stock... Read More
Today we are inundated with tons of information about the... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Reach in your pocket and take out that big roll... Read More
Just about now everyone is confused as to which way... Read More
For years investors have been taught to look into the... Read More
Being wrong is OK, but let's not carry it to... Read More
Financial markets provide their participants with the most favorable conditions... Read More
Wall Street has been preaching for years and years to... Read More
Spread trading is a technique that can be used to... Read More
I feel that an investment strategy in the stock market... Read More
Just about everything you have been told about Social Security... Read More
Among the largest forces that affect stock prices are inflation,... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
Did you know you can make money (and a lot... Read More
I am sure that if you have a brokerage account... Read More
On November 17 I bought 7 different mutual funds and... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
This is the continuing story of our two imaginary traders,... Read More
What the heck am I talking about?It is often said... Read More
The Shadow knows. There used to be a radio program... Read More
It is difficult to make money in a bull market,... Read More
Caught in a whirlpool and being sucked under. No life... Read More
Minority Report the movie may not be far off if... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
In 1960 an engineer working for a watch company in... Read More
Should the market turn against you, it is important that... Read More
Intervention. Now don't let that big word scare you. The... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
Stocks & Mutual Fund |