How To Be A Winner

Everyone who invests in the stock market wants to be a winner. Each person's definition of a winner will be somewhat different, but there is hardly one who isn't looking for that stock that will double in price within one year.

Can it be done? Yes, but when you look at the odds you may want to find a better or maybe slower and safer way. The chance of finding that mother load is 1 in 200, about ? percent. Of the 11,000 listed securities you have a choice of 55. Even the pros don't like those odds. What makes you think you are better?

We have been in a great bull market from 1982 to 2000. Then the bubble burst. Yet the investing public continues to believe that we are going to see double digit returns every year. According to the Financial Research Corporation's study the mutual fund pros return was only 10.92% and the average investor had gains of about 8.7%. The great Warren Buffett says the bull is over and that we will be looking at a 5% return not the 12% to 15% that has occurred in the recent past.

As I mentioned in my recent column the returns for the past 126 years has only averaged 7% with 2/3 of the return coming from dividends which are about nonexistent today. Instead of looking for the rainbow with the pot of gold at the end my suggestion is to limit your losses and let your winners run. You have heard that clich? before, but have you every understood what it means in the stock market? The floor traders and hedge fund managers do not look for home runs. They look for slow and steady and never allow any major losses. The key to long term investment success is to limit your losing positions and never give back profits you have earned.

If tech investors in 1999 had followed this principle they would have kept about 80% of their profits. Wall Street says you should Buy and Hold and they have told this lie so often that it has become conventional wisdom. It is absolute stupidity. A simple trailing stop-loss order would have protected the investor's capital. Almost no broker and certainly no brokerage house recommends loss limit orders. No one is taught the basic winning concept of the market ? an exit strategy. Until that is learned you are doomed to give back your winnings and take losses when a stock doesn't go up and heads down.

Most investors have no plan as to how much money they would like to accumulate nor how to intelligently go about it. They don't know where they are going and they don't want o be late.

When you have decided how much you need to save the next important step is not what to buy, but how to exit in the event what you do buy happens to go down instead of up.

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

best value cleaning service Bannockburn ...
In The News:

Jevon Martinez livestreamed himself removing 10 Flock Safety cameras in Bernalillo County, but authorities say eight belonged to neighborhood associations.
A dark web service called Nexus claimed to hold over 153 million driver's license records, and the FBI confirms it is now looking into the incident.
Asking Siri to call American Express connected an 82-year-old woman to a bogus number that nearly drained $100,000 from her Bank of America account.
The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.
iPhone Duo opens to a 7.6-inch foldable display starting at $1,999, but Siri Recap's ambient listening on Apple Watch may spark privacy concerns.
Homeowners association meeting minutes and membership lists can expose names, addresses and emails that scammers use to craft convincing phishing scams.
Lima, Ohio, has installed 3,120 floating solar panels on its Twin Lakes Reservoir, projecting nearly $10 million in electricity cost savings.
Amazon's Alexa for Shopping now lets customers verify suspicious emails, texts and phone calls against the company's own communication records.
Lindsey Brooke Isaacs spent 13 days in jail after a Flock camera flagged her Dodge Durango near a fatal Florida crash that killed three people.
AI-powered smart grocery carts are linked to 32% higher spending, according to new research, as Instacart Caper Carts expand across U.S. stores.
A VPN encrypts your connection on hotel, airport and café Wi-Fi abroad, but streaming catalogs and live sports access still depend on provider rules.
Gmail's Verified Sender Program launches September 8, 2026, giving U.S. political committees a more reliable path to your personal email inbox.
Elroy Air's Chaparral can carry over 500 pounds and fly 450 miles without a runway, and the FAA just tested it under a new federal program.
Bedrock Robotics says its autonomous excavators are doing paid earthwork on active job sites in Texas and Nevada with no operator in the cab.
A dedicated banking computer isolates your financial accounts from malware and phishing, but passwords, SIM swapping and outdated software remain risks.
The OlloNi SS1 AI robot pet uses a 4K camera and facial recognition to learn your family, but its removable Red Heart memory module raises questions.
Nine identity theft warning signs range from unfamiliar credit inquiries to SIM swap attacks that can quietly drain your bank account funds.
Robot.com's R-dog uses articulated legs and wheels to climb stairs and deliver packages, while its built-in screens display paid ads along the route.
MyChart phishing emails mimic real patient portal alerts with fake lab results and malware tricks that target Windows users across the country.
The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.
Google's Motion Assist places animated dots on Pixel screens to combat motion sickness in vehicles, but the Android 17 rollout remains limited.
Moving to a 55+ community can quickly expose your data to scammers and data brokers before you even unpack, putting your whole family at risk.
Amazon Prime Air drone delivery plans to reach nearly 500 U.S. cities by the end of 2026, but your yard and ZIP code may determine eligibility.
The FBI reports nearly $21 billion in cybercrime losses for 2025, up 26%, as AI scams make fake voices and identities more convincing than ever.
Uber teen accounts now feature live video streaming from the driver's camera, but encrypted recordings stay on Uber's servers for up to 14 days.

Roller Coaster

I love roller coasters. The steeper the better. High and... Read More

Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??

Well maybe that's overstating it a little, but it's certainly... Read More

The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading

Stock trading remains a very competitive field and the stock... Read More

The Elephant

Four blind men were asked to give a description of... Read More

Forecasting the Stock Market

Every day I see in the financial section of newspapers... Read More

Oil Stocks CHK WLL - What Is Their Worth?

(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading futures.... Read More

When?

When will the stock market stop going down and start... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More

Political Investing

We have two candidates for president that have really different... Read More

Trend Trading - Trading Stocks Using Technical Analysis and Swing Trading Strategies

Peter is a professional trader, Paul is not. Peter has... Read More

Stock Valuation using the SMP Model

Disclaimer: Please note that I do not necessarily purchase, own,... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

Buying Stocks and the Importance of Correct Timing

An investor can find and research the best stock on... Read More

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

Moving Averages

Every day on CNBC-TV they show a 200-day moving average... Read More

How to Find Value in No Load Mutual Fund Investing

What are you thinking when it comes to your no... Read More

Whitewater Stock Market

Ever done any whitewater rafting or canoeing? Long periods of... Read More

affordable house cleaning Winnetka ...