Home
>
Stocks & Mutual Fund
>
Pamplona, the Wild Investment Bulls

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the running of the wild bulls in Pamplona, Spain. Some of the nuttier people get out their capes and stand in their path as they come roaring down the street.

Our would-be matadors wave their home made cloaks at the bulls hoping the bulls will charge at it and not at them. The list of casualties at the end of the day is sometimes quite large, but, fortunately, not too many are killed.

These two participants, the bull and the make-believe matador remind me of the those same participants in the stock market. The bull is Mr. Market and the matador is the make-believe investor.

Why do I call him a "make-believe investor". Because as a former 17-year exchange member, floor trader and brokerage company owner I have had many clients who thought they were "investors". As a professional I would watch many of the dumb things (like standing in front of a charging bull with a rag in their hand) that clients would do with their money. Many times I could talk them out of it, but others they would insist on being gored.

The professional trader learns very quickly that you cannot stand in front of a charging bull who happens to have the shape of a stock market that is going full speed either up or down. Investors love those upward moves, but a few will say I have a nice profit now so I'll cash in and take the money only to see their stock, mutual fund or ETF (Exchange Traded Fund) continue its skyward journey.

The problem was they were guessing that their price was at or near the top of the move. Is there any way to know what is the highest price? Actually 'NO', but there is a way to catch a very large percentage of the price advance and have Mr. Market tell you when to sell. How? Let me show you the time-honored secret of the long-term professional traders.

Stocks do not make an orderly procession to a top and then turn down in an orderly fashion. They move in stair steps up sometime 2 steps up and one step back or 3 steps up and one step back. Many times they will rest for long periods and consolidate. What you can do is place a stop loss order that should be moved up as your equity advances.

Suppose you bought AT&T at $50 several years ago and had followed it up with a 10% or 15% stop loss order. It went over $100 and then started down to below $15. If you had been following with your stop you would have sold out about $85 or $95. The charging bull when it changed direction would not have gored you.

There is nothing to fear as long as you are protecting your investment with stop loss orders. The bull is your friend as long as you have protection when his direction changes.

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.

tidy up service Glenview ..

In The News:

New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.

FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.

New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.

OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.

Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.

New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.

DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.

Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.

Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.

Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.

A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.

South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.

Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Fake AI apps disguised as "ChatGPT" and "DALL·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.

Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.

Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.

NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.

Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Hyundai AutoEver America suffered a data breach affecting 2,000 current and former employees, exposing names, Social Security numbers and driver's license information.

Washington court rules automated license plate reader images are public records, even when stored by vendors like Flock Safety, setting precedent for transparency.

Fake airline texts claiming flight cancellations are targeting travelers with convincing scams. Learn how cybercriminals steal personal data and credit card info.

Discover how iOS 26's new Adaptive Power feature automatically extends iPhone battery life by learning your usage patterns and adjusting performance intelligently.

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Pamplona, the Wild Investment Bulls

Stocks & Mutual Fund