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.
Airbnb cleaning service Arlington Heights ..How can you dispel an illusion unless you look directly... Read More
A colleague of mine just returned from a scuba diving... Read More
Let me start by saying that...Most online brokers do not... Read More
Recently I watched my favorite football team lose a vital... Read More
Four blind men were asked to give a description of... Read More
You may have wondered why your mutual funds have been... Read More
As I said in Part I everyone in the insane... Read More
There is so much involved in developing peak performance, that... Read More
Right now there doesn't seem to be any "gold fever".... Read More
Most advisors will tell you they can beat the market.... 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
Even if you don't own any of their stock or... Read More
I have watched my cat play with a bag of... Read More
Everyone who follows the financial news has heard of mutual... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
Recently I was invited to appear on a live CNNfn... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Carefully thinking through your goal as a trader is of... Read More
It is finally catching up with them. The brokerage companies... Read More
∙ Make every investment in the stock market a long-term... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
As an investor you will want to check out any... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
On November 17 I bought 7 different mutual funds and... Read More
reliable maid service Winnetka ..If you've ever flipped on the television to CNN Financial... Read More
What is leverage?Here is a definition of leverage from an... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
For the last few weeks we have seen the stock... Read More
The stock market has been going up for more than... Read More
I often play a little game with myself when I... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
Having lived aboard a sailboat for 2 years I was... Read More
The fight continues to rage among traders who use technical... Read More
Hello Inflation, it has been awhile, I see you on... Read More
Right now there doesn't seem to be any "gold fever".... Read More
What can I expect to make my first year of... Read More
The Winter Games for the Olympics are coming up soon... Read More
Is really not as important as to how you invest... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
For some "long term" would mean holding a stock position... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
The greatest stock market myth is the idea that investing... Read More
You have heard about a particular mutual fund from a... Read More
Time to look back2004 is over, now we are in... Read More
The World Bank claims that some two billion of the... Read More
It looks like we have now entered a new bull... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
Stocks & Mutual Fund |