How To Buy And Hold

One of the most believed bits of conventional wisdom from Wall Street is to Buy and Hold. Any stock or mutual fund should be put away for eternity and never sold. This is total hogwash and is guaranteed to reduce your investment income.

Brokerage companies never will advise you to sell. Last year over 1,000 stocks on the Nasdaq lost more than 90% of their value. During that same period of time brokerage companies issued 33,000 (yes, that's right, thousand) recommendations for their clients. Of that 33,000 only 125 were "Sell". What happened to those "expert" analysts who were telling you to buy on the way up? Couldn't any of them figure out to tell you to get out when a stock was headed down at breakneck speed?

When you want to know something I have a favorite method. It is, "Follow the Money". Where does a brokerage company make its greatest return? Not on commissions as you might think. It is selling a new issue of stock or a secondary issue for a company now in business or debentures of some kind. We are talking about big bucks here. Minimum six figures and most times seven figure commissions for the brokerage company. Just one of these more than makes up for the customers piddling commissions.

If the brokerage company analyst tells the truth that he doesn't think a company is a good buy anymore and to sell you can be sure the executives at that company have a long memory should they decide to sell more stock. Issuing a sell signal would be the death knell for the brokerage company ever selling any new issues for that company. And the analyst would probably get fired.

Instead of telling you to Sell they downgrade the company from Buy to Neutral or Accumulate or Underperform the Market or Hold. The latter is the worst rating you will see. Any downgrade is your signal to Sell immediately.

There is a successful way to Buy and Hold, but it will take about 15 minutes of your time each week. You could do it monthly, but you will have better results if you do it weekly. One of my basic criteria for owning any stock or mutual fund is that it must be going up. Not down or sideways. Let's say you have from one or several stocks in your portfolio. On Saturday morning you look at the closing price of the stocks you own. You figure out what 10% of the closing price would be. You might want it to be more or less. For example, if the stock is $40 per share that comes to $4. On Monday morning you call your broker and place an Open Stop Loss order for $36. Never lower the price. If the stock sells down to that level you want to be sold out.

The Hold side of the Buy and Hold formula has been met. You held it while it was going up. You don't want to hold it while it is going down, do you? This is the right way to Buy and Hold, not the way Wall Street tells you. You bought. You held. You got out with a profit (or a very small loss). Congratulations. You have outsmarted Wall Street.

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

Oswego taxi to Midway ..
In The News:

Hackers and scammers keep looking for ways to break into your Facebook account. Kurt “CyberGuy" Knutsson has some tips to make sure your account is secure.
Kurt “CyberGuy" Knutsson shows you how to create group texts to reach multiple people at once — and also how to leave them if you get annoyed at the volume of interruptions.
Tax fraud is on the rise, and hackers are now using identity hijacking and artificial intelligence for tax returns in someone else's name to get a refund.
Toyota's Punyo soft robot mimics human behavior, using its chest, hips and arms — in addition to its hands — like a human to handle objects,
Hackers used third-party information to break into Roku accounts, according to the streaming company. Roku says it has secured affected accounts.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt "CyberGuy" Knutsson explains the simple steps for setting a Wi-Fi hot spot on an Android. If you have internet on your phone, it's easy.
Dubai recently hosted the first jet suit race with a backdrop of skyscrapers, and one observer says it was straight out of a comic book.
Kim Komando introduces ways to keep you and your devices safe while traveling. The clever hacks mentioned can protect you from hackers and jackers.
TikTok CEO Shou Chew published a video Wednesday urging users to "protect your constitutional rights" against a bipartisan bill that would force China to divest from the app.
Tech guru Kurt "CyberGuy" Knutsson says you can never be too careful with tech passwords. He explains how to keep your information safe.
The Lighthouse in New Zealand rotates 360 degrees, constantly giving those inside different views around the clock. Built in the 1990s, it's up for sale.
High school students in Colorado are learning how to design their own AI model projects, including cameras for self-driving cars and apps that can teach other languages.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Vehicles collect sensitive personal information, which is used to set auto insurance rates. That's partly why auto insurance premiums are rising.
Honda's Uni-One is a hands-free electric mobility device that can reach speeds of 3.7 mph and support a user weighing up to 242 pounds.
Kim Komando puts three AI chatbots head-to-head to decide which is the best assistant for modern problems. Compare Google Gemini, ChatGPT, and Perplexity.
To safeguard personal information on iPhones, users can employ built-in security measures and iCloud Keychain for enhanced privacy. Kurt “CyberGuy" Knutsson shows you how.
Kurt “CyberGuy" Knutsson introduces you to the City Transformer’s CT-2 electric car, which can seamlessly transition from 8 feet wide on the road to a compact 3 feet for parking.
Hackers are always looking for new ways to trick targets into downloading malware. Now, they're after cryptocurrency folks via Calendly. Kurt “CyberGuy" Knutsson has the details.
Kurt “CyberGuy" Knutsson reveals how the Microlino Lite, a compact and eco-friendly vehicle, tackles city traffic congestion with its chic design and small dimensions.
A new funeral scam targets surviving family members of those who recently died. Scammers reach out to the survivors and pose as funeral home officials.
Merlin Labs' autonomous pilot could soon hit the commercial airways and may help alleviate a looming pilot shortage, according to CEO Matt George.
There's a simple way to check your subscriptions on an Android and cancel them. Tech guru Kurt "CyberGuy" Knutsson explains how it is done.
Hackers use pirated software to target macOS, Android and Windows devices in search of stealing cryptocurrency, according to Kurt "CyberGuy" Knutsson.

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

Boiler Room 7/17/00

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

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Pathways

During our travel down life's path we come to many... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

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

Time Out

Are you paying any attention to your retirement savings? Do... Read More

The Next Bull Market

We are already in it, but you can't see it.... Read More

Trading as a Business

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

The I Word is Coming to a Town Near You

Hello Inflation, it has been awhile, I see you on... Read More

Investment Attorneys and Garbage Stocks

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

Why Investors Use Financial Planners

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

Living Trust Investing: Income Considerations when the Grantor Dies

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

Emotional Involvement

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

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

How Much Information Do You Need?

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

What Are You Waiting For?

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

The Secret Art of Backtesting

If you have not back tested your trading system, you... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Whitewater Stock Market

Ever done any whitewater rafting or canoeing? Long periods of... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

Bollinger Bands Strategies

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

You Wont Like This

Why? Because I am going to shatter your conventional wisdom... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

shuttle from Midway Morris ..