acc home remodeling vernon hills yureka home remodeling 50k kitchen remodel round lake park master suite remodel murray lampert round lake .. Chicago Drug testing

Complacency

During the month of January the Dow Jones Industrial Average, usually referred to as the DOW, had an almost 1,000 point range, most of it down and the average investor has yawned and said 'so what, this has happened many times before'.

Is there any reason to worry now?

The terrible event of September 11 shocked investors who sold heavily and then watched the market climb back to where it was on September 10. The investing public as well as many professional money managers now believe that soon this year we will see the DOW move back up for another bull market like we had in 1999. Let's hope they are right, BUT suppose they are wrong. What will happen to the stocks and mutual funds you own now?

What will be the valuation of those equities if the DOW smashes through the 8,000 level and goes even lower? Do you have anything in place that can protect you from such a catastrophe? Is there a solution to that potential disaster?

Yes, there is. And it is very simple.

If you believe that the market is going lower you could sell every stock you own and buy some bonds, but no one knows for sure. If the stocks and mutual funds you own go up you will kick yourself. Here is a sure-fire way to protect your money. Place an open stop-loss order of about 10% under its most recent low price. That way if it goes up you will be able to move the stop up to lock in additional profit and if it goes down you will not take a bigger loss. This is how every professional trader makes money. You allow yourself to take big winners and only small losses.

The biggest problem with doing this is YOU. Huh? Yes, it is the fact that few people want to sell even with a small loss. They prefer to sell with a big loss. I'm not joking.

I know the story all too well. Investors say, "When it goes back up, I'll sell and get out even" Or "It can't go any lower. I'll hold on." How about this one, "How can I sell it now when it has dropped this far?" Folks, things aren't going to get any better. If you had had that stop-loss order in you would have been out at a much higher price. With mutual funds you cannot put in a stop order so you must call in your order when it breaks the price barrier you have set. Do not rely on your broker to do it for you and do NOT let the broker talk you out of it unless, of course, he wants to guarantee in writing that it won't go any lower. And pigs can fly.

You cannot become complacent and believe the great Wall Street lie that the market always comes back. It may, but it might not be before you retire. Only you can protect your money.

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:

Risk Control

Everything you invest in has risk so you want to... Read More

Bad News is Good News

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

Can?t Stand The Heat

It seems that every day I turn on the TV... Read More

Evaluation I

An insane person cannot evaluate an insane evaluation system.As you... Read More

Nest Eggs and Omelets

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

The Inside Scoop on Mutual Fund Rip Offs

The bear market that showed up at the end of... Read More

Getting Even

I know there are a lot of you out there... Read More

Investment Lawyers and Trash Stocks

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

Enron Cure

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

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

What is a Mutual Fund?

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

Patterns

The Law of Chaos is the theory of random unpredictable... Read More

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains... Read More

Different Types of Mutual Funds

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

Duct Tape

Did you run out to buy that duct tape yet?... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Lifestyle Funds Provide Greater Security?

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

Choosing A Fund

For years I have been saying you must have a... Read More

VIX

No, this is not a symbol for some Latin number.... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

Duck

Duck! No I don't mean a quack, quack. I meant... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life... Read More

What the SEC Really Thinks About Mutual Funds!

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

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

induction parking lot lights store led lights Pete's produce ..
induction parking lot lights store led lights Pete's produce ..