innovative remodeling hoffman estates disability remodeling north barrington rps remodeling chicago building onto a house beach park home additions that add value buffalo grove .. Chicago Drug testing

Buy Low - Sell High

Now where have I heard that before? I know. It was my broker.

So I took his advice and bought some of the stocks he recommended. I am still waiting for the 'sell high' part of the equation. Everything he touted went up for a while and now it is lower than when I bought it. It is so low I can't bring myself to sell it. My capital has shrunk about 60% from where I started. That's a lot of money to me because it took a long time to save it. What happened?

The brokerage company that your broker works for puts out recommendations almost very week for various companies listed on the major stock exchanges. They have simple things like Buy or Strong Buy. Then they have a complex group of words used when they downgrade a stock. It never goes from Buy to Sell. No, it becomes Accumulate, Underperform, Attractive, Market Perform, Neutral or some other meaningless term. If any stock is ever downgraded even one notch sell it immediately. Finally after a stock has lost 50% or more of its value it becomes a 'Hold". And you know where you are holding it.

Last year the brokerage companies gave over 33,000 stock recommendations to their customers. Of those only 125 were Sell. On the NASDAQ exchange alone there were over 1,000 stocks that lost more than 90% of their value. The "experts", known as analysts, were all telling you to buy. Your kid could have thrown a dart at the Wall Street Journal in 1999 and done as good a job as almost any analyst. What I want to know (and I think you do too) is if they were smart enough to tell you to buy then why weren't they able to tell you to sell?

I'll tell you why. Brokerage companies never give sell signals because they don't want to offend a company that might come out with a public offering on which they will make a killing. It is better to kill a few customers than miss out on several million dollars. You pay commission and ask for honest advice, but you are being fed disinformation.

Is there any way you can protect yourself from this nonsense? Yes! It is called a stop-loss order. Brokers don't like them because then they have to watch your account. He will tell you you don't need it as he will watch your account. And pigs can fly. The average broker has 300 accounts and unless you have a large 6-figure account you will be on the bottom of the pile.

Anyone can place a protective open stop-loss order for stocks. Most are about 8% to 15% below the highest closing price. I recommend that each Saturday morning you look in the paper for the Friday closing price of your stock and place your open stop each Monday morning with the broker. As your stock moves up keep raising the stop and you will sell near the high. Never lower it. This will lock in your profit or take you out of a losing position. I can assure you your broker will never call you to sell. Brokers are not taught to protect your capital.

This is the only way to buy low, sell high, protect your capital and lock in your profits.

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:

Buy and Hold: How to Perpetuate Your Investment Losses

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

Trend Trading - Trading Stocks Using Technical Analysis and Swing Trading Strategies

Peter is a professional trader, Paul is not. Peter has... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

Trading Tips No 6: The High Cost of Low Cost Stock Market Information

It has been said that low cost or even free... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

Oil Stocks As A Long Term Investment

The demand for world oil is increasing while world reserves... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

Bad News is Good News

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

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

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

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Protectionism

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

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

It Cant Be Done

Wouldn't it be nice if you were only in the... Read More

Stock Chart Reading

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

Investment Discipline

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

Understanding Stock Market Indexes

A stock market index is a statistical measure of changes... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

A Stock Market Investment Plan that Never Lets You Down

The bulls and bears of the stock market are both... Read More

Market Timing

Every broker and financial planner will tell you that you... Read More

Zero Sum Game

Most people think the stock market is a zero sum... Read More

Lifestyle Funds Provide Greater Security?

With the stock market stubbornly refusing to settle down and... Read More

led wholesaler led parking lot fixtures Pete's produce ..
led wholesaler led parking lot fixtures Pete's produce ..