building an in law addition antioch adding a wrap around porch to a ranch house skokie back of house room additions mundelein best kitchen remodels adding a second floor to your house lake villa .. Chicago Drug testing

Choosing A Fund

For years I have been saying you must have a fund that is outperforming the S&P500 Index. Well, I've changed my mind. Now I think your fund should be outperforming the NASDAQ Composite Index. So far this year, March 30, the S&P is up 1.3% and the NASDAQ Composite is up 9.5 %.

Have you checked your mutual funds for their performance so far this year? I don't know how important your money is to you, but it is important enough for me to check out my funds at the end of each month. I live off that income. Some day you may be doing the same so now is the time to start tracking those returns.

For almost the last 20 years I have bought nothing but no-load mutual funds. There is absolutely no correlation that a fund performs better if you pay commissions. The only one who profits here is the broker, not you. In fact with an 8 1/2% front-end load you actually start 9 1/4% in the hole. Many no-load funds can be purchased at discount brokers for no commission at all. The call these NTF funds - No Transaction Fees. This is a great bargain that every investor should take advantage of.

One of the things I have been preaching for years and I have not changed my mind about this is the funds you own should be the best performers available. My definition of best performer is that you should only buy a no-load fund that has the greatest increase in NAV (Net Asset Value) for the past 6 or 12 months. Your broker is definitely not going to tell you about these. You can find them yourself .

Look in Mutual Fund Section of Investor's Business Daily newspaper. Usually about once a week they publish a list of 25 mutual funds with their performance record for the past 6 or 12 months. If you are going use this indicator then buy the top one, two or three and only check them out once each month to see that they remain on the list. If your fund drops below 15th or 20th or completely out of the list you will then sell it and buy the fund that is at the top.

If you have a computer you may check out www.smartmoney.com as they list the top 25 performing funds. I would not buy one unless it has been on the market for at least a year. You may use the same sell strategy as the IBD above.

In real estate the smart strategy is to buy right. In the stock market the smart strategy is to sell right. If you follow this plan during a bull market you will make 2 or 3 times the increase of the S&P or NASDAQ Composite.

If you are willing to look at your mutual funds once each month for about 10 minutes you will be able to outperform 99% of the returns of financial planners, brokers or bankers. Is it worth it to choose your own funds? You have to answer that.

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:

Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

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

Dont Lose All Your Money

That sounds like good advice doesn't it? Don't lose all... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

Enron Cure

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

Discover the Biggest Trading & Investing Online Mistake

Any online investor / trader seeks an excellent off or... Read More

Being Wrong Buying Stock is Okay

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

The Information Age

It is wonderful to be alive in the information age.... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More

Choosing a Stock Broker

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

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... 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

Investment Attorneys and Garbage Stocks

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

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

Stock Trading Diversification

This is the continuing story of our two imaginary traders,... Read More

Why Investors Use Financial Planners

Do you have a financial planner? Does one of your... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

Protect Your 401K

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

led lighting fixtures induction lighting fixtures Pete's produce ..
led lighting fixtures induction lighting fixtures Pete's produce ..