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.
Culver prom limo ..Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
I made my very first investment in the stock market... Read More
Three little pigs went to the market to stock up... Read More
Success in small cap & micro cap stock trading like... Read More
One Saturday morning, while he was sitting at his computer... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
How can you dispel an illusion unless you look directly... Read More
If you were to find that you had some severe... Read More
Money: the most charged word in the planet. It means... Read More
This is a guide to the different types of mutual... Read More
Before they go over the cliff to their destruction these... Read More
This is the continuing story of our two imaginary traders,... Read More
You've decided to try your luck at trading stocks or... Read More
The bulls and bears of the stock market are both... Read More
∙ Make every investment in the stock market a long-term... Read More
If you are a baby boomer, time is not on... Read More
With the stock market stubbornly refusing to settle down and... Read More
"If you don't know where you are going, any road... Read More
Ever jumped out of an airplane? It's OK if you... Read More
Unfortunately, most of you who are reading my column are... Read More
Look back over the years and try to remember how... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
A 'stock option' is a contract between two parties giving... Read More
The debate rages all over Eastern and Central Europe, in... Read More
It seems that every day I turn on the TV... Read More
Wood Dale limo ..Invest in the stock market for the RIGHT reason, using... Read More
If there is one term over-used when talking about making... Read More
Caught in a whirlpool and being sucked under. No life... Read More
When an individual investor wants to roll up his sleeves... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
We learnt the following the hard way! If any of... Read More
Because there are so many stocks that are NOT paying... Read More
In 1960 an engineer working for a watch company in... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
It is finally catching up with them. The brokerage companies... Read More
Even if you don't own any of their stock or... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
Every Wall Street analyst, financial planner and broker will tell... Read More
I mean it when I say that. While plastic silverware... Read More
As an investor you will want to check out any... Read More
The date October 13, 2000 will forever be embedded in... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
During our travel down life's path we come to many... Read More
Just about now everyone is confused as to which way... Read More
Is really not as important as to how you invest... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Do you have a nest egg? You know, a place... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
I go to the Money Show every year to visit... Read More
The big bad bear is stirring again. So far he... Read More
Stocks & Mutual Fund |