What! Me worry?
Many of you remember the cover of MAD magazine. It was one of my favorites. Alfred's only worry was about his front tooth. You and I have other problems.
The one big problem we all have is enough income to support our life style. Those who are approaching retirement or are retired will have to have enough cash or income from investments or pension plans to make it. We all know you can't live on Social Security alone.
Your broker, financial planner, banker, whoever you rely upon for financial advice will advise you to start saving and to make some sound and safe investments. Most of them will recommend stocks, mutual funds and bonds as well as having your home free and clear by the time you are ready to quit. All of that makes good sense. The only thing is what stocks, which bonds and whose mutual funds should you buy? That answer is very simple. Ones that go up, pay good dividends and don't go down. The latter is not so easy so you might have something to worry about.
Unlike Alfred, you can't sit back and not worry. So which ones? This is one you won't hear on Wall Street: It doesn't make any difference what you buy. Buying does not take too much brain power. The hard part is selling. The financial mavens don't tell you that the key to success in the stock market is selling. If you own a stock or fund that is not going up or is trending down it MUST be sold or you will lose your cash.
Recently dear old Mother Hubbard AT&T, the widows and orphans choice, has been put on the sell list by some of the big Wall Street brokerage companies. Momma Tel was trading at $100 and now is about $20, an 80% loss. Investors say, "I can't sell Telephone because my Mother, Grand Dad, someone left it to them they said it was a 'good' stock and they should keep it forever". Care to look at some of the "good" stocks you have in your portfolio that have lost a huge percentage of their value? People become emotionally attached to stocks that are failing miserably. The only thing worse that than a bad stock investment is a bad marriage. With a poor stock you can sell it and be rid of that sick feeling and all those worries.
Having been an exchange member and floor trader for 17 years I know that every professional trader will tell you that you must cut your losses short and let your profits run. Very few brokers will ever tell you to sell because they have not been taught how to protect investment money.
You don't have to be smarter than Alfred E. to get out of a loser. The simplest protection for your funds is a stop-loss order of about 10%. When your stock or mutual fund drops 10% or more from its highest price you should sell it and find a better more profitable place for your money.
What! Me worry? Yes, I think now is a good time to start.
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
bathroom cleaning service Morton Grove ...After finding the price of a particular stock, usually the... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
You remember (they show it on TV every year) the... Read More
For the last few weeks we have seen the stock... Read More
If you have been watching the stock market at all... Read More
As I said in Part I everyone in the insane... Read More
It depends on your level of understanding of the market... Read More
Do you own any mutual funds? In an IRA or... Read More
This is a rather simple strategy with which I am... Read More
To begin, you might look at playing the stock market... Read More
After some forty years of banking and investments, I retired... Read More
Three little pigs went to the market to stock up... Read More
The stock market has been going up for more than... Read More
"If you don't know where you are going, any road... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
The broker told me not to sell because the mutual... Read More
Options trading can increase the profits you make when trading... Read More
Sometime in the third quarter of 1997, someone told me... Read More
Where is the beef? Or maybe it should be where... Read More
There is nothing more exciting than finding an undervalued stock... Read More
Investing in long-term financial vehicles give you the most gains... Read More
Mutual funds were created with the idea that one person... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
In his wonderful book, 'Multiple Streams of Income', best selling... Read More
The trash business in its efforts to cook their books... Read More
maid service near Park Ridge ...There is no question that the stock market is being... Read More
A 'stock option' is a contract between two parties giving... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
Carefully thinking through your goal as a trader is of... Read More
Among the largest forces that affect stock prices are inflation,... Read More
Investing in long-term financial vehicles give you the most gains... Read More
For years I have been saying you must have a... Read More
Recently I watched my favorite football team lose a vital... Read More
One of the main reasons many of us get into... Read More
It is difficult to make money in a bull market,... Read More
If you are going to be a winner in the... Read More
Every successful trader has a winning system. There are of... Read More
Success in small cap & micro cap stock trading like... Read More
It looks like the market is ready to start up... Read More
Did you run out to buy that duct tape yet?... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
Are you attracted to the idea of being in control... Read More
The bear market that showed up at the end of... Read More
The stock market has been in an up trend for... Read More
The Law of Chaos is the theory of random unpredictable... Read More
You remember (they show it on TV every year) the... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Options trading can increase the profits you make when trading... Read More
What the heck am I talking about?It is often said... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Stocks & Mutual Fund |