If you don't know where you are going any road will get there. After you get there you might not like where you ended up. You must plan ahead for your trip.
Do you know where you are going with your retirement portfolio? Do you have a plan mapped out? Do you know what to do if your plan starts hemorrhaging money like a stuck pig? Remember 2000? Of course that will never happen again, will it? I'm glad you are so confident. I'm not.
Every professional trader has a plan. Wait a minute. You say you are not a professional trader and you wouldn't trade like they do anyway. Well let me let you in on a little secret. If you don't learn to invest like a pro you are going to give him all (or most) of your money whether you like it or not.
What is it like to trade like a pro?
You won't like it and your broker and financial planner will like it even less. It is simple. The road to success is the road that has an exit ramp, in fact, several. It is like doing the Baja Road Race and carrying many spare tires. Without several tires you are not going to make it. Where are those exits? Why so many spare tires? Because without them you will be off the road in a ditch and unable to carry on.
The exits and the tires are your protection against becoming lost or broken down on your way to a comfortable retirement goal. To get where you are going in any vehicle you must not be stopped so you have to find an exit ramp when everyone else stays on the stagnating highway. That spare tire is one of your stocks or mutual funds that has gone flat and must be replaced. You are going to make it. The poor (sic) people who have no plan will remain mired on the highway to nowhere.
There is a secret to being a successful investor and it is one word - SELLING. Yes, any fool can buy, but it is the wise man who knows how to sell. That is called an exit strategy. If you do not have one you are doomed to lose money. During the long term bull market from 1982 to 2000 everyone became a financial genius. Now that we are in a long term bear market (that history shows us lasts an equal length of time) many of those financial geniuses are back in kindergarten and may not have time to graduate.
As the current stock market becomes more dangerous it is time to get out your road map to see where the exits are. It is time to realize that some of your tires could be wearing thin and may need to be replaced. No one is going to do this for you. Not your broker or your financial planner. You are the driver and a successful conclusion to this journey is completely up to you.
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
shuttle to Midway Beardstown .. Lockport Chicago limo O’HareUnfortunately, most of you who are reading my column are... Read More
The bear market that showed up at the end of... Read More
There is so much involved in developing peak performance, that... Read More
Mutual funds are doing more and more to discourage investors... Read More
Because you don't feel too sure about which stock or... Read More
A colleague of mine just returned from a scuba diving... Read More
To begin, you might look at playing the stock market... Read More
Checked your 401K lately? Going back to about a year... Read More
When an individual investor wants to roll up his sleeves... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
Wouldn't it be nice if you were only in the... Read More
The following are a list of nine things you want... Read More
It looks like we have now entered a new bull... Read More
Day trading is all about making buy and sell decisions.... Read More
The stock market is very unstable at this time going... Read More
There is a current movie entitled "Eternal Sunshine of the... Read More
It seems that every day I turn on the TV... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
With the internet such a huge part of our daily... Read More
I would like to share with the reader an article... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
Every successful trader has a winning system. There are of... Read More
Over the past few months, several investment professionals have brought... Read More
During the month of January the Dow Jones Industrial Average,... Read More
Green Bay Hummer H2 SUV rentals ..That sounds like good advice doesn't it? Don't lose all... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
Where is the beef? Or maybe it should be where... Read More
When it comes to stock market trading it PAYS to... Read More
The stock market is very unstable at this time going... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
Profitable day traders recognize that momentum trading is among the... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
During the month of January the Dow Jones Industrial Average,... Read More
One of the basic laws of physics is that a... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Ever turn down a street, get half way and suddenly... Read More
On the 40 year journey through the turmoil of a... Read More
It has often been said that there is only two... Read More
Are you one of those many people who dread reading... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
I don't know what kind it is, but I saw... Read More
Financial markets provide their participants with the most favorable conditions... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
There is no question that the stock market is being... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
As one of my regular readers you know I have... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Reach in your pocket and take out that big roll... Read More
Stocks & Mutual Fund |