cement board siding hardie plank siding siding installation installing vinyl siding mchenry county installing vinyl siding .. Chicago Drug testing

Acapulco - The Stock Market Dives

There is a famous cliff on the ocean in Acapulco where experienced divers jump into the sea. It is very dangerous because the water at the base of the cliff surges from a depth of 2 feet to 12 feet. The diver must time his leap so the water is at the greatest depth when he enters or he could easily be killed as many novices before him have been. Timing is the key.

This reminds me of the stock market where timing is also the key to wealth or poverty.

The ocean waves surge in and out against the cliff in short cycles. The tide moves in and out in longer cycles and is very predictable. When you look at Nature you will see there are relatively predictable cycles everywhere. We see day become night, the changes of the seasons and birth to death of our own bodies. Some changes are so microscopically small we cannot see them and others are so long we are not aware they are taking place. Everything has a season or a cycle. It is up to us to be able recognize it and use it to our advantage.

People ask why did the stock market go up (down) today? These short moves can usually be laid to some recent event. Then there are longer surges and regressions of months or a few years. We have bull markets and bear markets that seem to have historical cycles that last decades. These latter cycles run for about 16 to 18 years and move similar to the surges of the sea against the Acapulco cliff. A knowledgeable market timer will buy when the water is out (stocks look their worst) and hit the ocean (sell) as the surge is at its highest.

The ability to do this is NOT guess work. It is an understanding that cycles apply equally as well to the stock market as they do to the forces of Nature. Unfortunately, the principles to learn this very simple technique are not taught in college. Most must learn the method in the school of hard knocks. It can be very expensive.

In our recent bull market from 1982 to 2000 we had one of the predictable long cycles. The mindset of the public has become so hardened to the bull concept that they (and almost all brokers) have forgotten that each up surge is followed by a down surge of approximate equal length. This is not very comforting to current owners of stocks and mutual funds, but once they realize it they can do the prudent thing to protect their money - sell. Then they can buy U.S. Treasury bonds and wait for the next bull market to arrive. It is not very exciting to be in cash, but it is much better than seeing your money slowly disappearing before your eyes.

You must learn entry and exit of the stock market just as the divers in Acapulco have learned the correct moment to jump off the cliff.

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

In The News:

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

How (NOT) to Buy Mutual Funds

When it comes to mutual funds, there is a lot... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

Moving Averages

Every day on CNBC-TV they show a 200-day moving average... Read More

Whos Calling?

Its dinnertime and the phone rings. It's Joe Noname with... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

Discipline

One of the great "secrets" of successful people is discipline... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

Downdraft

For the year 2000 we have seen hundreds of mutual... Read More

Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor

Recently I was invited to appear on a live CNNfn... Read More

Dont Buy Stocks based on P/E Ratio alone

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

Investment Research - The Dalbar Study

Very few people, even professionals, have heard of the Dalbar... Read More

Two for the Money

Look back over the years and try to remember how... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Whitewater Stock Market

Ever done any whitewater rafting or canoeing? Long periods of... 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

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

Hedge Funds

You read and hear a lot about hedge funds. Unfortunately,... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Nest Eggs and Omelets

Do you have a nest egg? You know, a place... Read More

induction cobra head led outdoor lights Pete's produce ..
induction cobra head led outdoor lights Pete's produce ..