Mindset

In 1960 an engineer working for a watch company in Switzerland discovered that a small crystal would vibrate at a constant rate. He found this was so accurate that it could be used to calibrate time so he took it to company management and said it would make an entirely new kind of watch that had no springs and no gears. They could not imagine who would want such a thing. Swiss watches dominated world commerce. "Why change?", they said. The bosses did not even bother to patent it.

The inventor took his new idea to a commercial trade show, set up his booth and tried to interest manufacturers to produce his new kind of watch. Of the thousand people only 2 were willing to try it ? Texas Instruments and Seiko Corp. of Japan. Ten years later the Swiss manufacture of watches had shrunk to 10% of it former production.

It took a complete change of thinking to produce this new model. Most people are rooted in the old way they have always done it and are reluctant to change. The new model, the new paradigm is refused.

Now I want you to think about another paradigm. This time a model for your investment portfolio.

Wall Street has been teaching since time began to Buy and Hold. When your stock or mutual fund heads south you are not to worry about it because "the market always comes back". But my question is, "In your lifetime?" There are thousands of stocks that go up than go down and never recover. You might have some of those in your bank vault.

Here is the change in thinking you need to incorporate. Place a stop-loss order about 10% or 15% below the price. This is especially true when you first buy. The most important thing every professional investor does is protect his capital. You never need worry about how much you will make. Your major concern is how much can I lose if this turns in a mangy dog. After you have owned this gem and it does go up then you can replace the stop-loss order to a higher level and continue to do that until you are finally stopped out (sold out) with a nice profit when it starts down.

Your broker will not want to do this for one very simple reason. He then becomes responsible to see that the order is executed because if it isn't he will have to make up the difference out of his pocket. He will actually have to watch your account. If he gives you a hard time then find another broker.

Customers like you are not taught this simple method of thinking about the stock market. It requires a change of thinking. There is a better way than how the big brokerage houses tell you. This paradigm will allow you to make more money because when you are sold out and have cash in your account you will be able to find a better stock or mutual fund.

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

In The News:

Apple recently notified a small number of iPhone customers in 92 countries that their phones may be under attack by mercenary spyware.
An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.
Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.
A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.
The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.
Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.
Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.
If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.
Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.
Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.
Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.
Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.
The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.
Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.
The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.
Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.
Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.
The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.
The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The FBI is warning the public about a recent phishing scam via text that claims its targets owe money in Pennsylvania for unpaid road toll charges.

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

Seecrets on Investment: Tired of Making Huge Losses in the Stock Market ? Part 2

Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

Adding Funds

Someday you may want to retire and continue to live... Read More

The Stock Trading Plan - Why You Must Have One To Trade Successfully

This is the continuing story of our two imaginary traders,... Read More

Stock Loans

Hedge current portfolio positions and gain access to capital resources... Read More

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

Trading Tips No 6: The High Cost of Low Cost Stock Market Information

It has been said that low cost or even free... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Good News?

As the man said, "I've got some good news and... Read More

Evaluation II

As I said in Part I everyone in the insane... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Buy and Hold: How to Perpetuate Your Investment Losses

A recent cartoon in my daily newspaper showed two guys... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

How Covered Calls Turned a Trader Around

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

Inertia

One of the basic laws of physics is that a... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More