15 x 20 room addition round lake beach signature remodeling home office addition lakewood farmhouse remodel modern house additions .. Chicago Drug testing

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try to decide whether to buy a particular stock they immediately go to the financial statements to determine the growth potential of the company. Numbers and more numbers. Then management analysis and industry speculation. Unless you are an experienced financial analyst (and there are not very many good ones) the numbers in the reported statements can be very misleading - just as the company Controller wants them to be.

Let's not consider fraud as there has been plenty of that both here and abroad. They are all honest (I hope). Most corporate executives want to remain within the law so they report statements that are true to the FASB - Financial Accounting Standards Board.

As the old saying goes, "Numbers don't lie, but liars can figure". If you are good with accounting techniques you can make a bankrupt company look good - on paper. On CNBC-TV many folks watch the CEOs telling a great story about their company. You sure don't expect them to tell you the whole truth and nothing but the truth, do you? That is why I always hit the mute button. And many times when you look to see what the insiders are doing in this wonderful (?) company this executive and his buddies are selling out.

Then there is Morningstar that gives us those twinkling heavenly bodies. Nothing like a 5-star mutual fund - that has lost money for the past 4 years. So much of their information is old and if they know it you can be sure that has already been factored into the current price. How about those peer groups? Suppose this particular peer group is ranked 99th out of 100 or even 15th or lower. One question: why do you still own it?

Why are you putting your money in the stock market at all? The idea was to make more money. Right? Yet the majority of little investors will hold a stock or mutual fund while it goes down and down. Wouldn't it make more sense to sell out once it loses a certain percentage from its highest price after you buy it? If you bought it at $20 and it is now $40 is it now time to sell? I don't know so why not let the price action tell you. If you only wanted to risk 10% when you bought your stop-loss would have been $27. It now should still be 10%, so you will be out at $36 if it starts down. Suppose you tracked that stop all the way up to $80? This is why I have always preached that stops make you money.

The best (?) analysts know very little more than you. They just have a bigger vocabulary about the market. You and your dart board can do as well. All any truly smart investor needs is common sense and the ability NOT to fall in love with any position. Know when to hold 'em and know when to fold 'em.

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:

How Eating Bitumen Made Me a Better Trader

Trading is a fascinating activity.There are so many layers to... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

What the Hell is a Stock option?

A 'stock option' is a contract between two parties giving... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Hedge Funds

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

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

How Much Information Do You Need?

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

It Cant Be Done

Wouldn't it be nice if you were only in the... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More

More Window Dressing

Two weeks ago I wrote about what the Securities and... Read More

VIX

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

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Chart Reading

As an investor you will want to check out any... Read More

Leverage - Margin Debt

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

Online Broker Trade History Not Doing the Job

Let me start by saying that...Most online brokers do not... Read More

Patterns

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

Stock Trading Secrets?

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

KISS Formula

There are formulas for just about everything, but it has... Read More

Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

Dont Spend Another Dollar on Business Opportunities Until You Read This

With an insecure job market, overworked employees, insufficient retirement savings... Read More

induction light bulb induction highbay Pete's produce ..
induction light bulb induction highbay Pete's produce ..