rebath wheaton home sweet home remodeling update house exterior deer park mcdermott remodeling bannockburn perez remodeling .. 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:

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Investment Attorneys and Garbage Stocks

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

Stock Insurance

You have a lock on your house. You have a... Read More

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

Most stock traders know that momentum trading can be a... Read More

Struggling Stocks, Booming Commodities

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

Roller Coaster

I love roller coasters. The steeper the better. High and... Read More

Understanding the Bulls and the Bears

If you've ever flipped on the television to CNN Financial... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Different Types of Mutual Funds

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

Leverage - Margin Debt

What is leverage?Here is a definition of leverage from an... Read More

Zero Sum Game

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

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

When?

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

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

Moving Averages

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

Trading Stocks ?Never Forget About A Past Trade

We all know that emotions control every decision that an... Read More

The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading

Stock trading remains a very competitive field and the stock... Read More

Economists #2

Economists know more about how the fragments of society work... 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

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

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

Your Trading Objective: Why is that so Important?

You've decided to try your luck at trading stocks or... Read More

A Stock Market Investment Plan that Never Lets You Down

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

Alfred E. Newman

What! Me worry?Many of you remember the cover of MAD... Read More

Investment Research - The Dalbar Study

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

high power led bulbs piles street light Pete's produce ..
high power led bulbs piles street light Pete's produce ..