Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. How're you doing?
If you have been putting it in the stock market you have been watching it get smaller instead of bigger. Your nest egg is becoming an omelet instead of hatching into a wonderful creature. There are places for your money, but for the next few years you will be better off in a simple savings account or money market fund.
Stay away from the big name mutual funds. If you don't believe me have a look at what they have done with your money for the past 3 years. Most have lost about 50%, some 60% and more. Their story now is they are "cheap" and a great buy; they can't go any lower - but they probably will. Mutual funds only work in a bull market and the bull was chased back to the barn in 2000. The bear is now out of his cage and has the run of the premises. When the stock market bubble (let's call it an egg) broke 3 years ago your broker, financial planner, banker had no plan to protect your capital. None of them had ever seen a bear market and none were trained to protect customers' money. Brokers are salesmen and are not there to help you make money even though they think they are. Their employer not once has ever told them the great secret of the market. That secret - SELLING. Having been a member of the exchange and a floor trader for many years I learned how and when to sell. If you didn't you would not last very long. You would be broke.
There is a way to keep your egg from becoming fried, poached or scrambled, but your broker will not tell you. Most of them don't know and their companies don't want you to find out. Selling and putting your cash in a money market account does not make them any money.
There is a thing called a stop loss order for stocks. The simplest one is for 10%, but you can make it any amount you wish - 5%, 15%, whatever. The best time to calculate your stop is Friday or Saturday. If your stock is $40 you figure 10% or $4.00 and you call your broker on Monday morning and tell him to place a Good 'Til Cancelled Sell order at $36. As your stock advances move the stop-price up, NEVER down. This allows the market to tell you when it turns weak rather than you trying to guess when to sell. Your stock might go to $100 before you are stopped out at $90.
Now is the time to protect all your eggs with a big soft stop-loss cushion.
(c) 2005
Al Thomas' best selling 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 to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.
family-safe home cleaners Winnetka ...There are many important things you need to know to... Read More
Caught in a whirlpool and being sucked under. No life... Read More
How do you make money without picking tops and bottoms?I... Read More
All of the talking heads have been telling us that... Read More
We keep hearing about this bear market and that the... Read More
Index Fund Trading can be one of the most profitable...or... Read More
If you haven't heard of the technical indicator with the... Read More
Wall Street's watchword has always been diversification, but what does... Read More
What can I expect to make my first year of... Read More
One Saturday morning, while he was sitting at his computer... Read More
Mutual funds were created with the idea that one person... Read More
For years I have been saying you must have a... Read More
Both the stock market and oil prices rallied recently, which... Read More
I was recently interviewed for a press release through a... Read More
One of the things people are always asking me is... Read More
It takes a total mental commitment to the task. It... Read More
Let's first define insanity. It is doing the same thing... Read More
Every day on CNBC-TV they show a 200-day moving average... Read More
The stock market can present you with a lot of... Read More
If you have been watching the stock market at all... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Has your broker been calling you recently with the "great... Read More
If you were to find that you had some severe... Read More
You have heard about a particular mutual fund from a... Read More
If you have talked to a stock broker or financial... Read More
insured cleaning company Lake Forest ...Being wrong is OK, but let's not carry it to... Read More
One of the things people are always asking me is... Read More
The spring-loaded rat catcher is the ultimate low-tech device invented... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
We are already in it, but you can't see it.... Read More
It seems that every day I turn on the TV... Read More
I constantly hear the talking heads on CNBC-TV, the radio... Read More
You probably have been told that options are risky. Even... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Checked your 401K lately? Going back to about a year... Read More
If you're like many investors who squander those small dividend... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
I would like to share with the reader an article... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
Carefully thinking through your goal as a trader is of... Read More
I go to the Money Show every year to visit... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
Wall Street's watchword has always been diversification, but what does... Read More
Four blind men were asked to give a description of... Read More
One of the most believed bits of conventional wisdom from... Read More
I know there are a lot of you out there... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
You have a lock on your house. You have a... Read More
If you want one.And I don't recommend any broker with... Read More
Stocks & Mutual Fund |