Keep Your Profits

It looks like we have now entered a new bull phase in the stock market and I have a question for you. Will you give back the profits that you make this time as you did in 2000? You sure don't want to, but you are not going to get any help from your broker.

The investors (Not really the right term. They were gamblers.) had bought stocks and mutual funds during the 90's and seen them have huge advances. They thought they were going to retire early, buy an island in the Caribbean and drink rum and coke all day with no hassels. All of a sudden the bull was attacked and eaten by a grizzly bear. Dreams of comfortable early retirement went up in smoke as the bull was barbequed.

We saw the technology stocks and many mutual funds lose about 80% of their value. Many people did not want to open their monthly brokerage statements and I couldn't blame them. Were there any way those losses could have been avoided? You betcha, but you won't hear that from your broker.

There is what I call portfolio insurance. It doesn't cost any thing and anyone can have it at no charge. Brokerage companies don't want you to use it much less even find out about it. It is a way of protecting your cash from being eaten by that nasty bear.

While the market is going up you don't even think about any financial calamity, but history has shown as far back as you want to look that the stock market goes up and it also goes DOWN. Over long periods of time it does increase at about 6% per year (including dividends and the inflation factor). During the 90's everyone was a financial genius and saw their accounts going up about 12% per year or more. That is not a sustainable pattern. Those periods do occur and are followed by years of declining prices. You don't want to own stock then, do you?

What you have to decide is how much are you willing to give up before you decide to sell. How much of your money are you willing to risk from here where you are right now. Is it 2%, 5%, 10%, 20% or more? In 2000 we saw $200 stocks go down to $5.00. You sure don't want to take that ride again.

After you make your decision you call your broker and tell (not ask) him you want to place a trailing stop loss order of 7% (whatever) on your position. Most assuredly he will try to talk you out of doing it. That 7% (?) is your insurance that you won't have to sit through a 20%, 40% or more down draught.

He will not "watch your account". That is your money not his. If you care about it you are the only one who will watch it. Place your open stop-loss order and keep your profits.

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

custom home cleaning Lake Forest ...
In The News:

A fake Claude AI download scam uses Google ads and Bing redirects to trick Mac users into pasting a hidden malicious command in their Terminal.
Ahold Delhaize's cybersecurity incident knocked online ordering and digital coupons offline at Stop & Shop, Food Lion, Hannaford and Giant Food stores.
The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.
Amazon's About You feature includes personality details from your shopping history, and some shoppers are finding hilariously awkward results.
Identity theft recovery starts with securing bank accounts, freezing credit and enabling two-factor authentication within the first 24 hours.
Apple's $299 HomeView smart display uses facial recognition to personalize screens for up to six household members and show live security camera feeds.
Domonique DuBose spotted red flags when a man on Hinge with 85,000 followers and a blue checkmark claimed to be a San Francisco 49ers player.
Your phone's location data can expose visits to doctors, pharmacies and places of worship. The FTC took action against data brokers selling this data.
Hackers targeted Danfoss refrigerator controls across French supermarkets, forcing chains like Carrefour and Monoprix to discard massive food stocks.
iOS 27 finally lets iPhone Shared Albums store photos and videos at full resolution in iCloud, but new items count toward the owner's storage.
A fake Facebook Marketplace text scam uses your real name as the seller to trick you into replying, and Malwarebytes warns even one response helps.
The Pentagon data breach exposed 2.76 million Social Security numbers and military records, raising long-term identity theft concerns for veterans.
Kodiak AI plans to haul IKEA freight on Texas highways with no one in the cab, raising urgent cybersecurity and safety questions for drivers.
Apple Intelligence in iOS 27 adds Extend and Reframe tools to Photos, letting iPhones generate new background areas beyond your original borders.
Microsoft's X account was hijacked to promote a crypto pump-and-dump scheme, exposing its more than 13 million followers to a scam campaign.
Scammers can combine your name, phone number and address with data breach details to attempt SIM swaps, phishing and even identity theft schemes.
ChatGPT Work, Meta Muse and Gemini Spark can monitor flight prices, sort your email inbox and track important deadlines, but savvy users start small.
iPhone, Samsung Galaxy and Google Pixel each hide a built-in tool that turns a video frame into a separate photo without any screenshot needed.
Operation KillSwitch dismantled KillSec's ransomware infrastructure, but investigators say a 16-year-old allegedly ran the entire cybercrime operation.
The Fox News Artificial Intelligence newsletter covers where voters will decide on AI data center ballot measures and Jeff Bezos' tech vision.
Apple's Impersonation Risk Detection in iOS 27 can flag suspicious activity inside apps, but the setting is off by default and must be enabled.
Federal Election Commission records can expose your name, address, employer and donation history once contributions exceed the $200 threshold.
Cybersecurity expert Morgan Wright says human skepticism remains the strongest defense against AI-driven phishing scams and voice cloning fraud schemes.
iPhone, Google Pixel and Samsung Galaxy each handle security updates differently, and one screen saying "up to date" may not tell the whole story.
Deborah Del Mastro heard what sounded like her daughter's terrified voice on the phone, launching a five-hour virtual kidnapping scam ordeal.

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

The Information Age

It is wonderful to be alive in the information age.... Read More

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More

Stocks Options Trading

Let's assume that you want to make some serious money... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

War Market

There is no question that the stock market is being... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using... Read More

Its A Duck

If it walks like a duck, quacks like a duck... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... Read More

Hedge Funds: the Good, the Bad, and the Ugly

Alfred Winslow Jones started hedge funds in 1949. He was... Read More

How Much Money Can I Make With Trading? What Account Size Do I Need To Start?

What account size do I need?How much money can I... Read More

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... Read More

Staying Sane While Wall Street Crashes

Everybody is riding the Wall Street Roller coaster. Even if... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

house cleaning company Wilmette ...