How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.
Wall Street has mastered this move even beyond the wildest dreams of Houdini. Investors have become so mesmerized by the smoke and mirrors that they believe the large brokerage houses are telling them the truth.
One of their master distractions has you believing that research is necessary to be able to pick a winning stock or mutual fund. All research is facts and figures which is nothing more than disinformation. Think. That long report by some analyst came from sources available to anyone and everyone, therefore, it is worthless. If everyone knows it then all that information is already reflected in the current price of the stock.
Just because you have information and it seems so good that doesn't mean the equity price is going to go up. Those beautiful pink, green and yellow tout sheets sent to you by some broker have you looking in the wrong place just as the magician does while he is picking your pocket. Sound familiar?
The annual report is a beautiful document. Slick paper and in full color, but those footnotes are hard to read. You know the old saying: "they give it to you in the big type and take it away in the small type". More of the magician's tricks. Did it occur to you that much of the content of the annual report is a year old? Is that going to tell you if the stock is going to go up tomorrow or next week?
Another distraction by the master magician is the prospectus. I have written these so I know how they can be manipulated. The most important thing to remember is they were not written for the investor. They are written so some Dilbert lawyer in his cubicle at the SEC in Washington will see that it meets all the regulations. There is practically no difference in the content of a winner and a loser.
So much of what comes out of Wall Street is sleight of hand and smoke and mirrors. You must stop and ask yourself, "Is knowing this going to make me any money?" In all likelihood it won't. Almost every analyst recommendation put out by brokerage companies is already ancient history and of no value. The Securities and Exchange Commission (SEC) in Washington is now investigating allegations that analysts have become salesmen for their brokerage companies and are told not to issue negative reports on any company no matter how poorly they perform.
Become aware of the magician's tricks and watch out for that other hand he has in your pocket.
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
http://www.mutualfundmagic.com; 1-888-345-7870
whole house cleaning Deerfield ..There is a current movie entitled "Eternal Sunshine of the... Read More
A common problem I often see when working with living... Read More
Never lose money in the stock market again. Yeah, I... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
You remember (they show it on TV every year) the... Read More
You probably have been told that options are risky. Even... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
For the last 12 years we have seen the Japanese... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
There is nothing more exciting than finding an undervalued stock... Read More
What is the Series 7 Exam? If you... Read More
Among the largest forces that affect stock prices are inflation,... Read More
Did you know you can make money (and a lot... Read More
The Shadow knows. There used to be a radio program... Read More
When it comes to mutual funds, there is a lot... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
To begin, you might look at playing the stock market... Read More
Reach in your pocket and take out that big roll... Read More
The broker told me not to sell because the mutual... Read More
It looks like the market is ready to start up... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
It is difficult to make money in a bull market,... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Four blind men were asked to give a description of... Read More
home cleaning services Des Plaines ..I am sure that if you have a brokerage account... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
Question: How does it get better when it gets worse?Last... Read More
As an investor you will want to check out any... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
"Buy and hold" is one of the most heralded investment... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
To begin, you might look at playing the stock market... Read More
There has been great condemnation recently because China has been... Read More
I am taking the time to help others learn the... Read More
We are already in it, but you can't see it.... Read More
Reach in your pocket and take out that big roll... Read More
I use the P/E ratio as a secondary indicator for... Read More
Well, not really. What I mean is I don't mind... Read More
When purchasing mutual funds we are cautioned to read the... Read More
Spread trading is a technique that can be used to... Read More
Just about everything you have been told about Social Security... Read More
Carefully thinking through your goal as a trader is of... Read More
A common problem I often see when working with living... Read More
The stock market can present you with a lot of... Read More
If it walks like a duck, quacks like a duck... Read More
A colleague of mine just returned from a scuba diving... Read More
For the last 12 years we have seen the Japanese... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
Stocks & Mutual Fund |