How To Be A Winner

Everyone who invests in the stock market wants to be a winner. Each person's definition of a winner will be somewhat different, but there is hardly one who isn't looking for that stock that will double in price within one year.

Can it be done? Yes, but when you look at the odds you may want to find a better or maybe slower and safer way. The chance of finding that mother load is 1 in 200, about ? percent. Of the 11,000 listed securities you have a choice of 55. Even the pros don't like those odds. What makes you think you are better?

We have been in a great bull market from 1982 to 2000. Then the bubble burst. Yet the investing public continues to believe that we are going to see double digit returns every year. According to the Financial Research Corporation's study the mutual fund pros return was only 10.92% and the average investor had gains of about 8.7%. The great Warren Buffett says the bull is over and that we will be looking at a 5% return not the 12% to 15% that has occurred in the recent past.

As I mentioned in my recent column the returns for the past 126 years has only averaged 7% with 2/3 of the return coming from dividends which are about nonexistent today. Instead of looking for the rainbow with the pot of gold at the end my suggestion is to limit your losses and let your winners run. You have heard that clich? before, but have you every understood what it means in the stock market? The floor traders and hedge fund managers do not look for home runs. They look for slow and steady and never allow any major losses. The key to long term investment success is to limit your losing positions and never give back profits you have earned.

If tech investors in 1999 had followed this principle they would have kept about 80% of their profits. Wall Street says you should Buy and Hold and they have told this lie so often that it has become conventional wisdom. It is absolute stupidity. A simple trailing stop-loss order would have protected the investor's capital. Almost no broker and certainly no brokerage house recommends loss limit orders. No one is taught the basic winning concept of the market ? an exit strategy. Until that is learned you are doomed to give back your winnings and take losses when a stock doesn't go up and heads down.

Most investors have no plan as to how much money they would like to accumulate nor how to intelligently go about it. They don't know where they are going and they don't want o be late.

When you have decided how much you need to save the next important step is not what to buy, but how to exit in the event what you do buy happens to go down instead of up.

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

kitchen deep cleaning Deerfield ..
In The News:

Unlike robotaxi competitors, Tensor focuses on consumer-owned self-driving cars that adapt to highways and urban roads with full redundancy systems for safety.
Medicare scams cost $54 billion in 2024 as fraudsters target beneficiaries with fake calls demanding payments and personal information to steal benefits.
Scammers create fake Evite invitations that mimic legitimate event emails, requiring users to verify senders and use antivirus software for protection.
The new Apple Watch hypertension feature passively monitors blood pressure patterns over 30 days using sensors to detect chronic high blood pressure signs.
Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.
New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.
The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.
Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.
TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.
Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.
San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.
Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.
A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.
Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.
Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.
Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.
Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.
Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.
A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.
Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.
Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.
OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.
A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.
The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.
Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

More Window Dressing

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

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

The Top 10 Reasons to Invest in Mutual Funds

Everyone who follows the financial news has heard of mutual... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Trading as a Business

What can I expect to make my first year of... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Parachute Investing

Ever jumped out of an airplane? It's OK if you... Read More

I Love To Lose Money

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

Buying Stocks and the Importance of Correct Timing

An investor can find and research the best stock on... Read More

Is The Bear In The Cage?

For the last few weeks we have seen the stock... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

When?

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

My Stock - Right or Wrong

We all know the expression, "My country, right or wrong",... Read More

Trading vs Investing

I often hear from people, "I don't trade. I invest.... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

The thinking process of the brain relating to the... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More

Living Trust Investing: Income Considerations when the Grantor Dies

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

Keep Your Profits

It looks like we have now entered a new bull... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Market Timing

Every broker and financial planner will tell you that you... Read More

interior house cleaning Highland Park ..