There is a current movie entitled "Eternal Sunshine of the Spotless Mind". It is about a man who has had a painful love affair and will do anything to rid his mind of those pain thoughts of a former love. He sees an advertisement that offers just such a service. It seems his former lover has the exact thoughts and she goes through the same treatment. Guess what? They meet again, do not recognize each other, and fall in love again.
Does any of this sound familiar?
May I gently remind you of what happened to your stock portfolio in 2000 to 2003? Please. Don't shoot the messenger. You fell in love with the stocks or mutual funds in your 401K and became wildly emotional about all the money your were making and how you thought about buying one of those islands in the Bahamas for early retirement. Then came the road crunching detour and you are left with a broken down portfolio by the side of the road.
Along came a shiny red tow truck and a mechanic who said he could fix everything. Slowly you began to forget the previous gut-wrenching journey and your car is now running (not as well as it used to) and seems to be getting better as this mechanic from Maul Street is working on it. Hey, I think I'm in love again.
If you cannot remember what happened in the past you will repeat those same errors in the future. Every great statesman has been a student of history. Every great investor has studied the history of the stock market to try to determine what the future will bring. Cycles continue to repeat and repeat because people forget the past. Those who are smart enough do not fall into the repetitive trap and instead take advantage of it.
One of the most predictable is the long cycle of the stock market. It usually runs about 16 to 18 years. There is the up cycle which is invariably followed by a down cycle of equal length. Within each long cycle are several short cycles of 6 month to 2 years with a resumption of the downward move until the cycle is completed.
Do you realize we just completed an 18 year up cycle in 2000? Now the market is completing a one year advance within that cycle and may be getting ready to head down again. How is your spotless mind doing? Have you forgotten your lesson from 2000? Are you willing to make that same mistake again?
If you choose to forget you are doomed to repeat your losses. This time use your whole mind to learn from a past mistake so you will not see your money disappear ? again.
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
Let's discuss commodities; with the latest Enron situation, it is... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
Are you attracted to the idea of being in control... Read More
Reach in your pocket and take out that big roll... Read More
Before you buy another car you walk around the lot,... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
If you have talked to a stock broker or financial... Read More
With the internet such a huge part of our daily... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
If you're a normal human being, your need to feel... Read More
I don't know what kind it is, but I saw... Read More
Having lived aboard a sailboat for 2 years I was... Read More
Look back over the years and try to remember how... Read More
In 1960 an engineer working for a watch company in... Read More
As an investor you will want to check out any... Read More
I would like to share with the reader an article... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
It has often been said that there is only two... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
How is it possible that trash Companies are posting less... Read More
For the last 12 years we have seen the Japanese... Read More
One of the main reasons many of us get into... Read More
What can I expect to make my first year of... Read More
All stock trading and investing methods must deal with the... Read More
Intervention. Now don't let that big word scare you. The... Read More
Congress recently passed another new law that is supposed to... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Both the stock market and oil prices rallied recently, which... Read More
Carefully thinking through your goal as a trader is of... Read More
When an individual investor wants to roll up his sleeves... Read More
Wouldn't it be nice if you were only in the... Read More
Investing in long-term financial vehicles give you the most gains... Read More
In 1960 an engineer working for a watch company in... Read More
The big bad bear is stirring again. So far he... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
The date October 13, 2000 will forever be embedded in... Read More
You should ignore analysts on TV, the radio, the newspaper... Read More
Profitable day traders recognize that momentum trading is among the... Read More
As the man said, "I've got some good news and... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
What a great statement!I just heard someone use it in... Read More
One of the basic laws of physics is that a... Read More
Mutual funds were moderately successful in creating a presence in... Read More
Let's first define insanity. It is doing the same thing... Read More
Sometime in the third quarter of 1997, someone told me... Read More
Intervention. Now don't let that big word scare you. The... Read More
Professional stock options traders use the term lean to refer... Read More
We keep hearing about this bear market and that the... Read More
The Winter Games for the Olympics are coming up soon... Read More
Having lived aboard a sailboat for 2 years I was... Read More
Stocks & Mutual Fund |