siding options deerfield crane siding siding calculator replace siding northbrook hardie plank siding harvard .. Chicago Drug testing

Catnip of the Stock Market

I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. The pleasure part is great, but I am not sure if he awakes without a hangover.

Rocket (that's his name) reminds me of a one of those people who buy a stock and hold it. At first while it is going up there is great pleasure and then euphoria until they know they are market geniuses. That's the drunken stage. Finally when the market turns against them they fall over not having enough sense to quit (sell) and later when realization returns they have a huge hangover (called hindsight) - and no money.

Can these 4-footed animals teach us 2-footed beasts anything? Can we be smart enough to quit while we are ahead? Rocket (and his friends) continue to make the same error time after time. We are supposed to be smarter so let's learn from their misconduct.

If you own stocks and/or mutual funds and the market is going up it is super catnip and we keep buying knowing that somewhere over the rainbow we are going to be rich and retire like kings. Almost none of today's investors ever think about selling. Wall Street tells us to buy and hold. They don't want you to sell because if you do they quit making money. Brokers make nothing on money market accounts.

Today with money market accounts paying less than 1% investors know the market will come back up. That is what all brokers preach. That is their catnip; their promise of better times ahead (with no plan to protect your cash). If they take that catnip promise away you might sober up and get rid of those losing stocks and mutual funds.

The great mother of all stocks, AT&T, well, it used to be, has dropped from $100/share to $14. What are those widows and orphans eating for supper now? Not steak. Maybe cat food.

When your equities are no longer rising and many are declining it is time to exit the market. Give up the catnip. When the trend stops its upward angle it is time to sell. Of all methods of investing the safest and most reliable is trend following. It is the catnip on the way up, but when the trend starts to decline you realize you are one smart cat and you are sober and walk away (sell).

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:

Struggling Stocks, Booming Commodities

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

Basics of Stock Market

Financial markets provide their participants with the most favorable conditions... Read More

Seecrets on Investment: Tired of Making Huge Losses in the Stock Market ? Part 2

Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More

No Load Mutual Funds: Boost Your Portfolios Returns

Investors who exclusively use broadly diversified, no load mutual funds... Read More

What the SEC Really Thinks About Mutual Funds!

Let's go into the details of why non-indexed mutual funds... Read More

Investment Lawyers and Trash Stocks

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

Hedge Funds

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

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

When?

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

Nest Eggs and Omelets

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

Stock Trading Secrets?

How often have you come across an advertisement or e-mail... Read More

How We Eluded The Bear Of 2000

The date October 13, 2000 will forever be embedded in... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Stuff

I continually hear from economists, talking heads, other market letter... Read More

Bad News is Good News

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

Managing Investing and Stock Market Risks

Reduce your investing and stock market risks by:Setting your sights... Read More

Rebalance And Diversify

The stock market has not been very kind to your... Read More

What Our Investment Advisor Wont Say Off The Bat

Most advisors will tell you they can beat the market.... Read More

The Club

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

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Series 7 Exam

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

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

street light company commercial street lights Pete's produce ..
street light company commercial street lights Pete's produce ..