Wall Street Paradigm

In 1960 an engineer working for a watch company in Switzerland discovered that a small crystal would vibrate at a constant rate. He found this was so accurate that it could be used to calibrate time so he took it to company management and said it would make an entirely new kind of watch that had no springs and no gears. They could not imagine who would want such a thing. Swiss watches dominated world commerce. They did not even bother to patent it.

The inventor took his new idea to a commercial trade show, set up his booth and tried to interest manufacturers to produce his new kind of watch. Of the thousand people only 2 were willing to try it ? Texas Instruments and Seiko Corp. of Japan. Ten years later the Swiss manufacture of watches had shrunk to 10% of it former production.

It took a complete change of thinking to produce this new model because most people are rooted in the old way and are reluctant to change. The new model, the new paradigm is refused.

Now I want you to think about another paradigm. This time a model for your investment portfolio.

Wall Street has been teaching since time began to Buy and Hold. When your stock or mutual fund heads south you are not to worry about it because "the market always comes back". But my question is, "In your lifetime?" There are thousands of stocks that go up then go down and never recover. You might have some of those in your bank vault.

Here is the change in thinking you need to incorporate. Instead of blindly holding and suffering through a major decline, place a stop-loss order about 10% or 15% below the price. This is especially true when you first buy. The most important thing every professional investor does is protect his capital. You never need worry about how much you will make. Your major concern should be how much will I lose if this turns into a mangy dog. After you have owned this gem and it does go up you can replace the stop-loss order at a higher level and continue to do that (monthly) until you are finally stopped out (sold out) when this puppy starts down.

Your broker will not want to do this for one very simple reason. He then becomes responsible to see that the order is executed because if it isn't he will have to make up the difference out of his pocket. He will actually have to watch your account for a change. If he gives you a hard time find another broker.

Customers are not taught this simple method of thinking about the stock market because it creates additional paperwork for the brokerage company. You must change your thinking. This is a better way than how the big brokerage houses tell you. This paradigm will allow you to make more money because when you are sold out and have cash in your account you will be able to find a better stock or mutual fund.

Strangely there is a similarity to the Wall Street thinking and that of the Swiss watchmaker. If the watch manufacturer had opened his mind he could have expanded his business and held on to the world dominance of timepiece manufacture. If the major brokerage houses taught their brokers and customers to make money (which they don't) they would increase their income and have many satisfied investors. Instead of holding on to a losing position the customer would be sold out (another commission) and have cash to buy into a different stock or mutual fund (another commission). It would result very quickly in doubling the amount of trading and protect their clients from substantial losses.

Brokers almost never tell their people to sell. Of the more than 8000 listed stocks there are currently only 87 sell recommendations. It is customary after a stock loses 50% of its value to be downgraded to "hold". And you know where you are holding it while you watch it go lower and lower.

You are obviously smarter than your broker. No one will take better care of your money than you do. Isn't it time to adopt this old, but unused paradigm?

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.

1-888-345-7870; http://www.mutualfundmagic.com

spring cleaning service Wilmette ...

In The News:

Jevon Martinez livestreamed himself removing 10 Flock Safety cameras in Bernalillo County, but authorities say eight belonged to neighborhood associations.

A dark web service called Nexus claimed to hold over 153 million driver's license records, and the FBI confirms it is now looking into the incident.

Asking Siri to call American Express connected an 82-year-old woman to a bogus number that nearly drained $100,000 from her Bank of America account.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

iPhone Duo opens to a 7.6-inch foldable display starting at $1,999, but Siri Recap's ambient listening on Apple Watch may spark privacy concerns.

Homeowners association meeting minutes and membership lists can expose names, addresses and emails that scammers use to craft convincing phishing scams.

Lima, Ohio, has installed 3,120 floating solar panels on its Twin Lakes Reservoir, projecting nearly $10 million in electricity cost savings.

Amazon's Alexa for Shopping now lets customers verify suspicious emails, texts and phone calls against the company's own communication records.

Lindsey Brooke Isaacs spent 13 days in jail after a Flock camera flagged her Dodge Durango near a fatal Florida crash that killed three people.

AI-powered smart grocery carts are linked to 32% higher spending, according to new research, as Instacart Caper Carts expand across U.S. stores.

A VPN encrypts your connection on hotel, airport and café Wi-Fi abroad, but streaming catalogs and live sports access still depend on provider rules.

Gmail's Verified Sender Program launches September 8, 2026, giving U.S. political committees a more reliable path to your personal email inbox.

Elroy Air's Chaparral can carry over 500 pounds and fly 450 miles without a runway, and the FAA just tested it under a new federal program.

Bedrock Robotics says its autonomous excavators are doing paid earthwork on active job sites in Texas and Nevada with no operator in the cab.

A dedicated banking computer isolates your financial accounts from malware and phishing, but passwords, SIM swapping and outdated software remain risks.

The OlloNi SS1 AI robot pet uses a 4K camera and facial recognition to learn your family, but its removable Red Heart memory module raises questions.

Nine identity theft warning signs range from unfamiliar credit inquiries to SIM swap attacks that can quietly drain your bank account funds.

Robot.com's R-dog uses articulated legs and wheels to climb stairs and deliver packages, while its built-in screens display paid ads along the route.

MyChart phishing emails mimic real patient portal alerts with fake lab results and malware tricks that target Windows users across the country.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

Google's Motion Assist places animated dots on Pixel screens to combat motion sickness in vehicles, but the Android 17 rollout remains limited.

Moving to a 55+ community can quickly expose your data to scammers and data brokers before you even unpack, putting your whole family at risk.

Amazon Prime Air drone delivery plans to reach nearly 500 U.S. cities by the end of 2026, but your yard and ZIP code may determine eligibility.

The FBI reports nearly $21 billion in cybercrime losses for 2025, up 26%, as AI scams make fake voices and identities more convincing than ever.

Uber teen accounts now feature live video streaming from the driver's camera, but encrypted recordings stay on Uber's servers for up to 14 days.

Wall Street Paradigm

Stocks & Mutual Fund