soffit installation grayslake siding companies painting aluminum siding siding replacement crane siding .. Chicago Drug testing

I Love To Lose Money

Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. During this past 3 years I have made money each year because I was not afraid to sell. The great secret that Wall Street does not want investors to know is all about selling, not buying.

The recent headlines scream"10 Stocks To Buy Now", "100 Best Mutual Funds For 2003", "Make 25% With These Safe Stocks" and "Now Is The Time To Buy". All are either stupidity or wishful thinking. Brokers and financial planners don't want you to find out that they don't know either so they come up with great stories about the equities they recommend. Unfortunately, when the stock or fund heads down it becomes one of those buy and hold situations and they tell you that you are "in for the long haul" and "the market always comes back". I hope that by now you have learned this is not true.

When there is a secular bear market, as I believe we are in now, it could be many years before we get back to "even". Last year 96% of all stock equity mutual funds lost money and the average fund lost 21%. These are times when the only safe place for money is in cash ? a money market account. For the previous 3 years money in your mattress outperformed the stock market by 40% and for lots of folks much more. Here is one your broker will not tell you ? Cash Is A Position.

The first thing you must learn about investing is how to protect yourself from losses. I mean big losses. When I was a floor trader on the exchange I lost on about 40% of my trades, but I never lost much. I came to love those little losses because I still had almost all my money available to find a better position. One that would make money.

Almost all of the magazine writers, talking heads and brokerage analysts are professional losers. It is easy to prove because they never tell you where to sell what they are telling you to buy. If you don't go in with a plan to protect your money it is like a general who goes into battle with no plan for retreat should he find he couldn't win the battle. One of the simplest money savers is the 10% stop. It you buy a stock or no-load mutual fund you should not take more than a 10% loss. This will leave you with 90% of your money that could find a real winner. The small losses will never break you. It is sitting with a loss that gets bigger and bigger and bigger is the one that will ruin you.

Learning to love the little losses will make you rich.

Al Thomas

Author of "If It Doesn't Go Up, Don't Buy It!"

Never lose money in the stock market again.

http://www.mutualfundmagic.com

In The News:

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus,... Read More

The Secret Art of Backtesting

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

What Are You Waiting For?

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

Kick The Tires

Before you buy another car you walk around the lot,... Read More

The 10 Commandments

Wall Street has been preaching for years and years to... Read More

Social Insecurity

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

How to Find Value in No Load Mutual Fund Investing

What are you thinking when it comes to your no... Read More

Price Targets

Every day in any financial publication you will find the... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Swing Trading Strategies

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

Mousetrap

The spring-loaded rat catcher is the ultimate low-tech device invented... Read More

Why Change Funds?

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

KISS Formula

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

The 401(K): How The Insider Has Stolen Your Retirement!

Mutual funds were moderately successful in creating a presence in... Read More

Quality Investment Information: Standing Firm In the Face of Opposition

THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Bottoms Ups

If you have talked to a stock broker or financial... Read More

The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

If you're a normal human being, your need to feel... Read More

Nest Eggs and Omelets

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

Dont Lose All Your Money

That sounds like good advice doesn't it? Don't lose all... 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

street lights video street lighting suppliers Pete's produce ..
street lights video street lighting suppliers Pete's produce ..