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.
Culver prom limo ..You have a lock on your house. You have a... Read More
I go to the Money Show every year to visit... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
During the day I watch CNBC-TV, the stock market channel.... Read More
Recently I was invited to appear on a live CNNfn... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
If you go to Haiti or other places in the... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
How many times have you said to yourself, "I'd like... Read More
The stock market has not been very kind to your... Read More
Just 30 years ago the stock market was a shadow... Read More
Mutual funds and brokers are always preaching not to buy... Read More
Who are the successful investors?There are those who follow the... Read More
Financial markets provide their participants with the most favorable conditions... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
What does it mean to short a stock?This means that... Read More
As a novice trader, you'll often feel the need to... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
I have a 2-car garage. There are nice shelves on... Read More
In my opinion, due to the volatility of stock market... Read More
Picture one of those clubs where only the real heavyweights... Read More
One of the greatest challenges of investing in stocks is... Read More
When the stock market is going up and all your... Read More
Wood Dale limo ..The gleam and bright lights of Wall Street lure in... Read More
Index Fund Trading can be one of the most profitable...or... Read More
Right now there doesn't seem to be any "gold fever".... Read More
I was devastated!I just couldn't believe it. I was 10... Read More
Last time we looked at the real performance of the... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
I made my very first investment in the stock market... Read More
A colleague of mine just returned from a scuba diving... Read More
We learnt the following the hard way! If any of... Read More
One of the big advertising kicks today from mutual funds... Read More
If you don't know where you are going any road... Read More
The World Bank claims that some two billion of the... Read More
It has fallen upon the consumer to make our economy... Read More
This is a rather simple strategy with which I am... Read More
Every day I see in the financial section of newspapers... Read More
If you are serious about making and keeping money by... Read More
I cringe every time I hear a novice investor tell... Read More
We are already in it, but you can't see it.... Read More
One of the great truisms of Wall Street is "Don't... Read More
There can't be many traders who haven't at least considered... Read More
We need a rabbit!This was a pretty horrible week for... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Professional stock options traders use the term lean to refer... Read More
I continually hear from economists, talking heads, other market letter... Read More
All of the talking heads have been telling us that... Read More
Stocks & Mutual Fund |