cement board siding hardie plank siding siding installation installing vinyl siding mchenry county installing vinyl siding .. Chicago Drug testing

Investment Discipline

One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.

Before you can have that discipline you must have a successful plan and stick with it. If the method you use does not work or results in smaller profits it should be abandoned and a better one found. For the average investor the plans laid out by Wall Street do not work and over the long run you will lose money. Actually you will make a very small percentage, but the return will be mitigated due to ongoing inflation. The great majority of investors believe that an annual return of 10% or more is to be expected when actually it is much less and there will be periods when there will be almost no return at all.

Returns can be increased greatly if the investor will learn not to follow the 3 great lies of Maul Street. They are Buy and Hold, Dollar Cost Average and Do Research. These lies have been told so often that they have become conventional wisdom.

During 1998 and 1999 the price appreciation was fantastic. If you check back in history you will find this was an aberration. Folks still think that was "normal". The actual norm is about 16 to 18 year periods of bull markets followed by bear markets with many 4 year cycles of ups and downs with that 16-year time frame.

Think back to 2000, 2001 and 2003. During that time did your broker ever call to tell you to sell? About 98% of brokerage company recommendations were to Buy. Many folks lost 50% to 80% of their savings. That alone should have turned on the light bulb in your head that either these guys are stupid or they are lying to you.

There is a "secret" to investing and it is one word - Sell. You must have to discipline to remove yourself from losing positions. During the worst part of that 3 years we saw many stocks drop 50 to 90% and other companies go out of business. It you have placed a limit to the amount of loss you would take you would have a lot more money today. Why do you want to wait for your stocks to drop 30, 40, 50% or more when you could have placed an Open Stop Loss Order with your broker to sell you out if your stock dropped below a certain price? Maybe 10%, hopefully not 20%, but even that is better than a huge loss.

In many cases brokers try to talk you out of selling, but your discipline will require you to be firm. You must protect your money; insist on protection of your investments.

Al Thomas' best selling 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 and receive his market letter 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 to Find Value in No Load Mutual Fund Investing

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

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

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

Can?t Stand The Heat

It seems that every day I turn on the TV... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

Online Broker Trade History Not Doing the Job

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

What To Buy Now

I am sure that if you have a brokerage account... Read More

Fake Money

Reach in your pocket and take out that big roll... Read More

Enronization

Even if you don't own any of their stock or... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Evaluation I

An insane person cannot evaluate an insane evaluation system.As you... Read More

Gold Fever

Right now there doesn't seem to be any "gold fever".... Read More

Why Stock Is More Risky Than Options!

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

Stock Trading Success

The ABC's of Stock Trading SuccessStock trading success...why is it... Read More

Market Experience of a Na?ve Stock Operator

Sometime in the third quarter of 1997, someone told me... Read More

Whitewater Stock Market

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

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

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

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

Bargain Basement - Finding Stocks That Go Up

Have you been listening to the talking heads on CNBC-TV?... Read More

Getting Even

I know there are a lot of you out there... Read More

Is The Bear In The Cage?

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

Complacency Indicator

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

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

induction cobra head led outdoor lights Pete's produce ..
induction cobra head led outdoor lights Pete's produce ..