When you become interested in a stock or mutual fund you can call your broker and he will send you reports on how the company is doing, what their management is like and what might be the projected earnings for the company and how the industry is doing. Great information.
You will apply yourself to this mound of papers to determine if you want to buy the equity. You might also send for more reports from independent analysts such as Morningstar. You will become buried in papers. That is what the brokerage company wants. The reason is very simple. If you buy the stock after doing all that research and it goes down instead of up they are not responsible for your stupidity. Of course, if it goes up they can take credit for providing all that great information.
Now let's think for a minute. You received all that information that was already printed so it could be sent to you. It makes me ask when was that printed? How old is the information? If I can get all this stuff about the company it means that anyone can. What it boils down to is the information is just that - information and none of it will tell you that the stock will go up further because the whole world knows.
These brochures are made to help you BUY not SELL. In my years of experience I call them a work of fiction. No brokerage company is going to issue a bad report about a company at least until it is ready for bankruptcy and by then your investment dollars have disappeared.
I know your next question. If I can't rely on those reports how am I going to buy anything? There is a better way. You will want to see the price action of the stock or mutual fund. All stocks undulate as they go up or down and you want to know the major trend.
On the Internet you can go to a web site www.bigcharts.com and type in the symbol of the stock or fund and request a weekly chart going back for about to 5 years. What you are interested in is what is it doing during the past 6 months to one year. If the trend is up it is a buy and if the trend is down or sideways don't buy it or if you own it sell. See how easy that is. Brokers and financial planners won't like it because it takes all the mystery out of buying stock and they don't want you to know this simple procedure.
Analyst reports give you lots of useless information, but will not tell if the stock will go up after you buy it. If it isn't going up don't buy it.
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.
house cleaning company Highland Park ...The stock market can present you with a lot of... Read More
It has fallen upon the consumer to make our economy... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
There is so much involved in developing peak performance, that... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
The greatest stock market myth is the idea that investing... Read More
So you're started trading, you bought some positions with your... Read More
Have you seen all those big full page ads for... Read More
When it comes to stock market trading it PAYS to... Read More
The stock market has not been very kind to your... Read More
I have watched my cat play with a bag of... Read More
If you don't know what a Roth IRA is then... Read More
This is a guide to the different types of mutual... Read More
Over the past few months, several investment professionals have brought... Read More
If you have not back tested your trading system, you... Read More
Everyone who follows the financial news has heard of mutual... Read More
What account size do I need?How much money can I... Read More
Most stock traders know that momentum trading can be a... Read More
I use the P/E ratio as a secondary indicator for... Read More
As I said in Part I everyone in the insane... Read More
As one of my regular readers you know I have... Read More
It has often been said that there is only two... Read More
When we go to the circus we see a trapeze... Read More
I am taking the time to help others learn the... Read More
We have two candidates for president that have really different... Read More
post construction cleaning Des Plaines ...For the last few weeks we have seen the stock... Read More
A common problem I often see when working with living... Read More
I often play a little game with myself when I... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
So you're started trading, you bought some positions with your... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
Did you run out to buy that duct tape yet?... Read More
When it comes to buying a stock or mutual fund... Read More
I cringe every time I hear a novice investor tell... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Minority Report the movie may not be far off if... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
A stock market index is a statistical measure of changes... Read More
I read a comment by a forum member on another... Read More
It is difficult to make money in a bull market,... Read More
Look back over the years and try to remember how... Read More
It has often been said that there is only two... Read More
The bulls and bears of the stock market are both... Read More
Every day in any financial publication you will find the... Read More
Let me start by saying that...Most online brokers do not... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
I would like to share with the reader an article... Read More
How many times have you said to yourself, "I'd like... Read More
If you're a normal human being, your need to feel... Read More
Stocks & Mutual Fund |