custom home remodeling winthrop harbor basement redo lombard hamilton remodeling hoffman estates addition to split level house bathroom reconstruction wheaton .. Chicago Drug testing

Finding A Good Stock

One of the things people are always asking me is how can I find a good stock. The answer I give does not please them. I say, "You are not qualified to pick stock. You don't know how so don't try. Put your money in a no-load mutual fund that is going up".

The next cry is, "I don't want to buy mutual funds. What do I do?" OK, so I'll tell you. It is easy. You will have to do less than an hour of work. None of that Wall Street mythology about research which is all horse hockey. The way Wall Street does research is worthless. And don't listen to any broker. Advice from a broker is a eulogy for your money.

They want you to look at the company prospectus. This document isn't worth the paper it is printed on. It was not written for the investor; it was written to pass inspection by some Dilbert lawyer in Washington to see that it meets all the regulations. You can take a prospectus of a very good company and one of a company that has gone bankrupt and you will see they are almost identical. Throw them away.

Read the Annual Report. Another bit of smoke and mirrors. The title should tell you - Annual. Much of what is in it is a year old. Worthless. And let's hope it doesn't have a case of Enronitis.

Get a report from Morningstar. They know all about every financial statistic for a company that you can think of. You might even find out how many sugar lumps the CEO has in his coffee, but there is one thing you won't learn. If you buy this company's stock will it go up? What I am saying is that all the conventional wisdom methods of doing research are worthless. So what do you do?

On the Internet you can find a list of the best performing mutual funds. Go to www.smartmoney.com or www.yahoo/finance.com . There are other places also, but these 2 are very good. List the top 5 mutual funds (write down their symbols). Now go to www.bigcharts.com . Put in the symbol for one of the funds. A chart will come up giving you a picture of the price performance of that fund. If it is going up at a 25-degree angle or more it means the fund manager is doing a good job of picking stocks. At the top of the chart picture there is a legend for Morningstar. Click on that. The new page will show near the bottom the major holdings of this fund. Again you need to get the symbols for his top 5 stocks and look at the chart picture for each one. If that stock is going up in a nice steady price over a period of time of 6 months or longer you have found a winner. Do this with several funds until you have found some stocks you like.

You have let a professional stock picker do all the work for you and now can piggyback his expertise at no cost. Please remember that when that stock turns down you want to sell it. You may be able to ride one up, but you can never tell when it will turn into another Enron. Always be ready to 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

In The News:

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More

Maximizing a Stock Market Investment

Maximizing a stock market investmentThere are several factors an investor... Read More

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could... Read More

Complacency Indicator

If you haven't heard of the technical indicator with the... Read More

Different Types of Mutual Funds

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

Social Insecurity

Just about everything you have been told about Social Security... Read More

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... 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

When?

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

The Stock Market is a Roller Coaster: Prepare for the Ups and Downs

IT'S REMINISCENT OF THE OLD children's tale about an old... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using... Read More

Emotional Trading

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

Investing in Stocks and The Game of Monopoly

To begin, you might look at playing the stock market... Read More

Bollinger Bands Strategies

The Bollinger Band theory is designed to depict the volatility... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

Stock Market Investments

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

Living Trust Investing: Income Considerations when the Grantor Dies

A common problem I often see when working with living... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

Enron Cure

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

garage lights commercial street lights Pete's produce ..
garage lights commercial street lights Pete's produce ..