You have a lock on your house. You have a lock on your car. You have a lock on your tool shed. Do you have a lock to protect your stock market investments?
Maybe you have a safe at home for your valuables such as jewelry, rare coins, special documents and even stock certificates. Wait a minute. Is that stock certificate protected just because it is surrounded with 3 inches of steel? Not really. The problem is that its value does fluctuate every day. It is OK so long as it is increasing because that is why you bought it. The broker told you to put it away and forget about it.
I hate to tell you this, but in the last 3 years that stock you own whether in your safe deposit box or in your account at the brokerage house might be worth a lot less. Wouldn't it be nice if there were some way you could protect that investment from a big loss? You can, but you will have to pay a premium, but you can set the amount of the premium yourself.
Some stocks you don't have to worry about. Isn't that true? You know, it's good ole AT&T. Mom bought that years ago and gave it to me when it was $55 per share. She said not to worry as it will go up and be there for retirement. Huh? You just looked and it is $14.00. Can't be, but it is. Now don't you wish you had bought some of that stock investment insurance? I bet your broker didn't tell you about it. They never do because you might end up with cash and take it out of your account and he wouldn't be able to make some nice commissions.
Most folks never heard of stock insurance. It has been there for years and years. Here is how it works. Call you your broker and tell him to enter an order for this stock with a loss protection and you are willing to pay a premium of 10% (you can set the percentage amount for more or less) and you want it to stay there until you cancel it. No, you don't have to send him a check. He might be a little puzzled at first until he realizes you are talking about on Open Stop Loss Order. He can enter that for you. If you had put that in place when AT&T was selling at $55 you would have sold out at $49.50 and today you would be about $3,500 richer for each 100 shares. (P.S. Brokers don't like to do this and will try to talk you out of it.)
You can do this with any listed stock to protect from loss of your investments. When you consider that the overall market is down about 40% in the last 3 years that 10% premium looks darn good.
A stop-loss order should never be lowered and should always be raised to follow a stock price up as it increases. It is not too late to do it. Call your broker today.
(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.
whole house cleaning Deerfield ..Buy high and sell low -- It's not a typo.Millions... Read More
Everyone who invests in the stock market wants to be... Read More
Four blind men were asked to give a description of... Read More
Invest in the stock market for the RIGHT reason, using... Read More
Well, not really. What I mean is I don't mind... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
Dollar cost averaging is one of the most popular ideas... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Most people think the stock market is a zero sum... Read More
On the 40 year journey through the turmoil of a... Read More
I often hear from people, "I don't trade. I invest.... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
I have watched my cat play with a bag of... Read More
After finding the price of a particular stock, usually the... Read More
I know there are a lot of you out there... Read More
You remember (they show it on TV every year) the... Read More
This article describes the model of a natural relationship between... Read More
Have you bought any mutual funds this year or late... Read More
Mutual funds were created with the idea that one person... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
During our travel down life's path we come to many... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
This is a guide to the different types of mutual... Read More
home cleaning services Des Plaines ..The trading method you employ to approach the stock market... Read More
Let me start by saying that...Most online brokers do not... Read More
What is leverage?Here is a definition of leverage from an... Read More
It is wonderful to be alive in the information age.... Read More
This is an extract of an article which was first... Read More
A few years back ? it seems like an eternity... Read More
The Law of Chaos is the theory of random unpredictable... Read More
The stock market can present you with a lot of... Read More
One of the basic laws of physics is that a... Read More
I often hear from people, "I don't trade. I invest.... Read More
Financial markets provide their participants with the most favorable conditions... Read More
Where is the beef? Or maybe it should be where... Read More
Is really not as important as to how you invest... Read More
Reach in your pocket and take out that big roll... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
One of the things people are always asking me is... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Two weeks ago I wrote about what the Securities and... Read More
We have two candidates for president that have really different... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
There is no question that the stock market is being... Read More
When we go to the circus we see a trapeze... Read More
'Sector funds are too risky.' 'I doubled my money with... Read More
One of the main reasons many of us get into... Read More
Stocks & Mutual Fund |