staircase remodel grayslake small master bathroom remodel eichler remodel chicago modular home remodel kitchen expansion into dining room .. Chicago Drug testing

Box Of Chocolates

Ever have one of those sample boxes of candy? Each little piece is beautifully wrapped in colorful foil or decorated with an interesting design. Taste just one. So good! One more. And another. Before you know it the box is empty. Nothing left.

This upmove in the stock market is very tempting - and could leave you with a tummy ache.

All the market "experts" are telling you that the bull market is back and to get your buying clothes on. Open your wallet and get in before it is too late. Mr. Schwab says it is dangerous to be out of the market. There are great values out there. These stocks are so low they can't go any lower. And there is a Santa Claus and an Easter Bunny.

There is one position I do advocate, but most broker and financial planners won't like it. It is called CASH. No broker believes cash is a position. They say you must always be "invested". It seems they have forgotten that investing means making money and another important part of investing means not losing money.

For the last month we have seen the market go up and some of you have seen some of your money come back. Not too much, but some. You want desperately to believe the bull market is back and your winnings will be restored. I sure hope so. Just suppose this is what is called a rally in a bear market and that it will not last. Then what? You don't want to see your investments slip away again, do you? You don't know if it is a good idea to sell now or wait. Your broker won't be any help.

There is a solution. Stay with your stocks and mutual funds as long as they are going up, but sell them if they go down. How? Every Friday after the close you get the settlement prices of your various issues and you then call your broker Monday morning to put in a "Good Til Cancelled Stop-Loss Order" that is approximately 10% below that closing price. As long as the stock is going up you follow this procedure every week and eventually you will be stopped out. Never move your stop down. You no longer have to guess if this is the highest price that your stock will reach. The stock itself will tell you.

Now you have cash and, if you want to, you can buy a better stock or mutual fund that is going up..

When you pick out a new chocolate (stock) do it carefully and don't try to eat the whole box at once. Sometimes it is best to put the box (your cash) away so you can come back to it another day.

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

In The News:

Fools Gold

The stock market has been in an up trend for... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Downdraft

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

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Momentum

One of the basic laws of physics states that a... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Investing in Stocks and The Game of Monopoly

To begin, you might look at playing the stock market... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Chart Reading

As an investor you will want to check out any... Read More

The Problem With Hedge Funds

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

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

Market Timing?

The recent criminal fiasco in the mutual fund industry is... Read More

Series 7 Exam

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

How To Buy And Hold

One of the most believed bits of conventional wisdom from... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

Enron Cure

Let's hope you did not have any of the Enron... Read More

When?

When will the stock market stop going down and start... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... 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

The Club

Yesterday I received my monthly issue of MONEY magazine. This... Read More

Stocks Options Trading

Let's assume that you want to make some serious money... Read More

store led lights osram induction lighting Pete's produce ..
store led lights osram induction lighting Pete's produce ..