Look back over the years and try to remember how many different stocks and mutual funds you have owned. Suppose you had owned only 2 different equities during that entire time. One when the market was going up and the other when the market was going down.
And you always make money in both directions probably doubling your money every 4 to 5 years.
You don't believe it. Follow along and I will prove YOU can do it.
You are not going to buy any stock; you are not going to have any short positions. Both are too volatile and shorting is too dangerous. Furthermore, you are not going to change your position more than once or twice a year and there will be no commission paid. You will never have any big losses and you will have some huge winners. Forget about that myth of doing research; you never need it. There will be times you will have one position on for a couple of years. Am I getting your attention?
You are going to buy hundreds of stocks that have their prices smoothed out so you can sleep at night. You buy them in mutual funds and the funds you are buying do not have any commission charge at all. You may want to open an account with these fund families as they do not have brokers who try to talk you in or out of your buying or selling decisions. Of course, you can do this with a discount broker. I have no financial connection with these firms. One is Rydex Investments and the second is DAL Corporation. Both are on the Internet.
The mutual fund symbol for DAL is FUNDX and for Rydex it is RYURX. These are seen on the Internet at bigcharts.com or at your broker's web site. Run out a 5-year weekly chart and put in a 40-week Moving Average. This is not complicated. If you have a problem ask your broker and print out both charts.
Look at the RYURX chart and you will see that the price of the fund moves up through the 40-week moving average line on September 20, 2000. You buy this fund for $7.32. For the next two years all your friends are losing their money and your fund is erratically moving up and up, When the price finally turns down below the 40-week moving average line you sell out on April 21, 2003 at $11.88 for a profit of $4.56 per share or 62%. The stock market went in the tank and you made money.
Now you are in cash in a money market account and the next buy signal occurs a couple of weeks later as that upward moving 40-week moving average has started up and is penetrated by the FUNDX mutual fund price on May 5, 2003 at $22.88. As of this date (7/4/05) you are still holding the shares now worth about $35.00 with an unrealized profit of 53%. In less than 5 years you are now ahead more than 148% (not counting taxes). If you have started with $10,000 in 2000 you would now have $24,880.
If you have the discipline to follow this simple method using just 2 funds that are only invested one at a time you can become a millionaire. These are two funds for the money.
Get ready ? GO!
Copyright 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 and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street loves to hate.
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