Let's see, he had some oats, fresh alfalfa and his vitamins. I know from the mixture that is great food and he will win the seventh race this afternoon. He can't lose because of his diet and a great jockey will be riding him.
Kinda reminds me of what my broker (horse trainer) told me to do when I was selecting a mutual fund to buy. He said to check out what was in the fund (the mixture of stocks, like my horse's breakfast) and to see if there was a good fund manager (the jockey). I did what he said and carefully read the annual report and the prospectus too. Sounds great so I bought it.
What I can't understand is I did all the things the horse trainer said I should and "Rocket", my horse's name, still came in 6th in an 8-horse race. All I wanted him to do is come in first and I can't say I'm crazy about that mutual fund either.
That fund has a 5-star rating, is managed by one of the great names on Wall Street and has 60 of the best known company stocks I can think of and yet it is going down. I am doing everything that conventional wisdom says I should, but I continue to lose. Is there and answer?
I am not so sure about the horse, but I know the conventional wisdom of Wall Street is mostly smoke and mirrors. I read the Annual Report, but I forgot that "annual" means that much of the information is over a year old. How much help can that be? And I forgot that the prospectus was not written to enlighten me, but for the bean counters in Washington. It is supposed to make available to me all the financial information I need to make a decision to buy. All of this research is nonsense, as it will not tell me the one most important thing I need to know - will the price increase so I can make a profit? Unfortunately, my broker is not going to be much help here either as he has been trained by the Wall Street method which has nothing to do with making money or protecting my capital.
Anyone can look up all kinds of information, but when it comes down to it ask this question: Will knowing all that stuff make me any money? I always figure that if I can find it out it isn't worth knowing any more because that information is already reflected in the price of the stock or mutual fund. So why bother?
Wall Street brokerage companies want you to do all that "research" because if what you buy doesn't go up they can say you knew everything about it before you bought it. It wasn't their fault you did not understand it.
I think I'll sell that horse. And quit listening to my broker.
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.
Online trading is so seductive - just sit, click, and... Read More
1. Begin investing immediatelyProcrastination is the number one enemy of... Read More
The most basic aspect of trading is learning to differentiate... Read More
Leaders are stocks that breakout immediately when the market confirms... Read More
I am good at a few things. I can certainly... Read More
The American Football season just came to an end with... Read More
When raising capital for a business venture, warrants are a... Read More
Soft dollars, a form of legal kickback, is a sly... Read More
What are Bonds?A bond is a debt security, by which... Read More
A significant number of corporations that settled accounts in the... Read More
The Light Crude Continuous Contract hit an all-time high at... Read More
"To drift is to be in hell, to be in... Read More
In the simplest of terms, Arbitrage means to exploit price... Read More
Remember the old saying, "never too late to start"? Well,... Read More
Some time ago I attended a seminar where participants were... Read More
When we think of investing we probably conjure images in... Read More
An option is a traded security that is a derivative... Read More
Step 1: Spend less than you earnPerhaps the simplest financial... Read More
Agonizing displays of poor theatrics failed to entertain my mind... Read More
Investors usually don't have an aversion to buying an asset.... Read More
The world of trading can get very complex because the... Read More
Q: I own a small decorating business and I'll be... Read More
Setting Up a Paper Trading AccountQuestion: I cannot trade with... Read More
How many of you out there think that the market... Read More
Location ? Once the holy grail only for real estate... Read More
Upper Saddle River, N.J. - May 11, 2005 - Now... Read More
About thirty years ago, statisticians armed with all of their... Read More
Many investors think that investing in mutual funds is free.... Read More
Yes, it's the time we've all been waiting for?tax season!... Read More
As far as traders go, many do not see the... Read More
What CA Needs To Do To Address Issues in FranchisingWe... Read More
If there were one piece of advice that an investor... Read More
The following perspective on (day) trading comes from my many... Read More
One among many ways you lose money in non-indexed mutual... Read More
When trying to analyze whether a promotional ad for an... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
It caught my attention when I heard an analyst on... Read More
If you know next to nothing, how do you go... Read More
1. Begin investing immediatelyProcrastination is the number one enemy of... Read More
Ready to start playing with your money? Not interested in... Read More
RETIREMENT PLAN CONSIDERATIONS are something every small business person needs... Read More
The Light Crude Continuous Contract fell from $67.70 a barrel... Read More
It is important to answer the following questions before you... Read More
Rich people: fortunate, lucky, selfish, and arrogant? Or highly educated,... Read More
Before every protective put trade it is possible to calculate... Read More
There has been much talk lately about Coca-Cola and its... Read More
"To drift is to be in hell, to be in... Read More
My paternal grandparents were born near Lake Como, Italy. My... Read More
How much are you willing to pay for a tank... Read More
They call 'em ETFs.There are hundreds of them.The mutual funds... Read More
This article attempts to help give the investor a broader... Read More
Everyone's talking about China. Don't miss the opportunities in the... Read More
The first point to mastering money management is that you... Read More
Ever since the turn of the century, world stock markets... Read More
Once upon a time, offshore investment strategies were spoken of... Read More
1. Lacking an investment plan a/k/a/ "Don't take a trip... Read More
Many people buy annuities according to their agent's recommendations. However,... Read More
This column has often focused on intangible investments like stocks... Read More
In April, the U.S. Mint revealed plans to strike in... Read More
The American Football season just came to an end with... Read More
Despite what some people may lead you to believe; day... Read More
When raising capital for a business venture, warrants are a... Read More
The most basic aspect of trading is learning to differentiate... Read More
The Moving Average Convergence Divergence charts, or MACD charts for... Read More
The Nature of Penny StocksFor anyone new to investing in... Read More
The man sat in a chair beside a dressing room... Read More
Investing |