Advisory Service for You?

It depends on your level of understanding of the market and the amount of money you have.

If you a sophisticated investor with a substantial amount invested you are probably already receiving more than one. If you have very little market savvy it will be difficult to choose one that fits the size of your portfolio. If you are just getting started my advice is don't buy one - yet.

Most of the advice is Wall Street goobledegook and most of the remainder is stuff you can't use anyway. Even the simplest letters have too much information and require more time than most working people have to act upon their recommendations.

There are literally hundreds of stock and mutual fund letters from which to choose. The first thing you want to know is what has been the track record - how much annual return has the advisor received for his readers over the past few years. Some will quote you wonderful figures, but these may be predicated on following all of his advice all the time. If that is the case you had better first ask how much money is required to buy at least 100 shares of everything he recommends when he recommends it. Don't let him weasel out of it - make him give you an answer or don't buy it. That amount may be more than you have so you must then pick and choose between his recommendations and you might not pick all the good ones, just all the bad ones.

There is one type of letter I consider essential to everyone. It times the market. By that I mean they tell you when the general market is going up and when to sell out because it is going down. Almost every broker will tell you it can't be done. He tells you that because he doesn't know how to do it and won't take the time to find out. He is a professional loser and doesn't deserve to be your broker.

The market timing service I have been using since 1986 is Fabian's Investment Resource out of California. They have a 20-year real time track record.

In the last 100 years we have had 30 bear markets which are defined as the overall market going down more than 20 percent and some more than 40 percent. Even the best stocks and mutual funds will go down in a bear market because they act like ships - when the tide goes out all ships go down with it. You don't want to have any market positions at that time.

The first basic advisory service should be for market timing. Check their claims and actual track record. Then as you learn more you may expand your horizon to picking individual issues or mutual funds.

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

---

What is the Most Important Indicator of All?

Most stock market traders have a favorite technical indicator.The one... Read More

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?

Success in small cap & micro cap stock trading like... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Why This Bear?

People are constantly asking me why is the stock market... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

Mindset

In 1960 an engineer working for a watch company in... Read More

China Syndrome

There has been great condemnation recently because China has been... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

The Golden Goose is Sick

It is finally catching up with them. The brokerage companies... Read More

Good News?

As the man said, "I've got some good news and... Read More

Roller Coaster

I love roller coasters. The steeper the better. High and... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

The Big Bad Bear

The big bad bear is stirring again. So far he... Read More

Where Is The Rabbit?

We need a rabbit!This was a pretty horrible week for... Read More

The Elephant

Four blind men were asked to give a description of... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

Trading For A Living - Part 1

There can't be many traders who haven't at least considered... Read More

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

Shadow Bull

As one of my regular readers you know I have... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

Lights of the Stock Market

There are red lights, green lights, blue lights and spot... Read More

No Load Mutual Funds: Boost Your Portfolios Returns

Investors who exclusively use broadly diversified, no load mutual funds... Read More

What the Hell is a Stock option?

A 'stock option' is a contract between two parties giving... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Oil Stocks CHK WLL - What Is Their Worth?

(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More