Every day I see in the financial section of newspapers how to forecast what the market will do in 6 months, 12 months, several years. "Ten stocks that will double in the next 6 months." Right! I have trouble trying to forecast what it will do tomorrow. Do not trust any who claims he knows what the future will be for the market.
Of course, your broker will send you gobs of slick material about various companies that predict they will double or triple in the next 12 months. On the New York Stock Exchange there will be about one half of one per cent (0.5%) of companies that will double this year. Are you smart enough to pick those winners? I'm not and I am considered a professional trader. And I am sure your broker isn't either. He just wants to make a commission and is probably promoting a stock his brokerage company wants to push.
Every investor wants to know the future and will send money to some "expert" who will send him news about a company that only (?) he knows. And pigs can fly. One thing about the market. It is almost impossible to keep a secret and everyone knows everything about other companies. As soon as some "analyst" finds a cogent fact that can influence a stock price he will share that "secret" with a few close friends. Within minutes the "secret" is known by hundreds of thousands and is immediately reflected in the price of the stock.
If you do get sucked into one of these money traps by some smooth-talking salesman or newspaper verbiage I strongly suggest you immediately plan your exit strategy. Without an exit plan you can easily lose a large amount of your "investment". This is not an investment; it is a gamble and should be treated as such. The first thought of any professional trader is 'if I am wrong how much am I willing to lose'? Maybe 2%, 5%, certainly no more than 10%. Pros understand that small losses are OK, but never take a big loss.
From 1982 to 2000 it seemed everyone was a financial genius. How many of those folks kept those big winnings from 2000? Almost none. Most lost 40% to 60% of their money. Brokers said, "Hang in there. You are in for the long haul". Unfortunately he did not tell you that Modern Portfolio Theory is based on a 40 year time line.
Yes, but understand you don't need to predict anything. Don't forecast. What you can easily learn is follow the major trend. You bought in 1982 and you sold out in 2000. The trend can be found in many ways with the simplest being posted every day in Investors Business Daily newspaper under the IBD Mutual Fund Index. When the Index price is above the 200-day moving average you own equities and when it is below you are in cash or bonds. Nothing complicated,
Don't try to forecast the market. Let the market trend tell you.
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.
disinfecting cleaning services Arlington Heights ..Money: the most charged word in the planet. It means... Read More
Let's go into the details of why non-indexed mutual funds... Read More
What does it mean to short a stock?This means that... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
It is finally catching up with them. The brokerage companies... Read More
1. Do not spread your money too thin.My friend has... Read More
I have a 2-car garage. There are nice shelves on... Read More
Among the largest forces that affect stock prices are inflation,... Read More
Never lose money in the stock market again. Yeah, I... Read More
When an individual investor wants to roll up his sleeves... Read More
Everyone who invests in the stock market wants to be... Read More
The big bad bear is stirring again. So far he... Read More
Is really not as important as to how you invest... Read More
Are you attracted to the idea of being in control... Read More
There are major differences between trading stocks and trading futures.... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
Checked your 401K lately? Going back to about a year... Read More
Because there are so many stocks that are NOT paying... Read More
I mean it when I say that. While plastic silverware... Read More
I was recently interviewed for a press release through a... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
As an investor you will want to check out any... Read More
You remember the story about the frog that was put... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
What account size do I need?How much money can I... Read More
bathroom cleaning service Mundelein ..I made my very first investment in the stock market... Read More
What can I expect to make my first year of... Read More
Every publicly traded company is required by the SEC(Securities and... Read More
Every Wall Street analyst, financial planner and broker will tell... Read More
For the last few weeks we have seen the stock... Read More
Have you ever thought of investing? Do you have a... Read More
It has fallen upon the consumer to make our economy... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
Never lose money in the stock market again. Yeah, I... Read More
Wall Street's watchword has always been diversification, but what does... Read More
Index Fund Trading can be one of the most profitable...or... Read More
Today we are inundated with tons of information about the... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
First let's see what protectionism is. According to Mr. Webster... Read More
It is difficult to make money in a bull market,... Read More
The single most expensive stock market trades are those made... Read More
On Friday or Saturday evening my wife gets a movie... Read More
Let's say you are interested in this one company. You... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
One of the most believed bits of conventional wisdom from... Read More
Before we get into all the good news out there,... Read More
Mutual funds were moderately successful in creating a presence in... Read More
Every day I hear from the "experts" on CNBC-TV and... Read More
Regardless of the fact that the world's stock markets have... Read More
When it comes to stock market trading it PAYS to... Read More
Stocks & Mutual Fund |