The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by Janus, Bank America and several other well known mutual funds is falsely being called market timing.
Wall Street, better known as Maul Street to most investors, does not want to you to find out about market timing. The reason is very simple. If you learn to sell you might take your funds and do something intelligent with them.
First let's understand what market timing is. Very simply it is a proven method that gives signals to buy and another signal to sell. Many of these methods are associated with stocks and mutual funds yet there are those that signal overall market conditions. We are on the verge of another sell signal for the general market and several market timers have already given those signals to sell. There are many excellent systems and they all beat the Wall Street lie of Buy and Hold. The key to all market profits is selling not buying.
The criminal acts of the mutual funds had nothing to do with this method. The hedge fund managers knew the stock holdings of the mutual funds in question and AFTER the market closed companies would make announcements of their earnings, new products approved by the FDA, legal actions, etc. that would definitely impact upon the stock price the NEXT day. If it was good news the fund would allow big money players to place their orders after all official trading stopped. That's 4:00PM New York time.
The fund price might be $20 per share, but depending upon the amount of stock in their portfolio it might make the settlement price the next day as much as 5% higher. That doesn't seem like much, but if you had shown a purchase of 10 million dollars on the close that day and sold it out the next day you would have a profit of $500,000. That is money removed from the fund that belongs to the shareholders. This is NOT timing. This is fraud and the parties should not only repay all those stolen monies to the fund, but should also see jail time and be banned from the industry for life.
If you want to find out more about market timing type in 'market timing' on your computer and do a search. There are scores of them, but you must do your due diligence to be sure that what they are telling you is true. Always ask for references. Make them prove what they say. Don't bother to ask your broker as he will tell you the Wall Street lie that it doesn't work.
Because of the precarious nature of this market I encourage you to look into this NOW.
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
al@mutualfundstrategy.com; 1-888-345-7870
There are red lights, green lights, blue lights and spot... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Reach in your pocket and take out that big roll... Read More
Today we are inundated with tons of information about the... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
If you are going to be a winner in the... Read More
The World Bank claims that some two billion of the... Read More
When you become interested in a stock or mutual fund... Read More
You've decided to try your luck at trading stocks or... Read More
Are you paying any attention to your retirement savings? Do... Read More
All stock trading and investing methods must deal with the... Read More
Money: the most charged word in the planet. It means... Read More
In his wonderful book, 'Multiple Streams of Income', best selling... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
Did you know you can make money (and a lot... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
Before they go over the cliff to their destruction these... Read More
The thinking process of the brain relating to the... Read More
It has often been said that there is only two... Read More
The gleam and bright lights of Wall Street lure in... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
The bear market that showed up at the end of... Read More
There is no question that the stock market is being... Read More
Mutual funds were created with the idea that one person... Read More
We learnt the following the hard way! If any of... Read More
What the heck am I talking about?It is often said... Read More
Every day I see in the financial section of newspapers... Read More
People are always asking me when should I sell my... Read More
The Bollinger Band theory is designed to depict the volatility... Read More
The bulls and bears of the stock market are both... Read More
Every successful trader has a winning system. There are of... Read More
Well, not really. What I mean is I don't mind... Read More
Who are the successful investors?There are those who follow the... Read More
If you go to Haiti or other places in the... Read More
Are you attracted to the idea of being in control... Read More
What a great statement!I just heard someone use it in... Read More
I go to the Money Show every year to visit... Read More
Let's assume that you want to make some serious money... Read More
You remember the story about the frog that was put... Read More
One of the basic laws of physics states that a... Read More
Do you own any mutual funds? In an IRA or... Read More
Spread trading is a technique that can be used to... Read More
The Surgeon General of the United States says that smoking... Read More
When we go to the circus we see a trapeze... Read More
How often have you come across an advertisement or e-mail... Read More
I made my very first investment in the stock market... Read More
Trading is a fascinating activity.There are so many layers to... Read More
When you become interested in a stock or mutual fund... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
You've decided to try your luck at trading stocks or... Read More
Every successful trader has a winning system. There are of... Read More
An investor can find and research the best stock on... Read More
There are so many kinds of work that needs to... Read More
Economists know more about how the fragments of society work... Read More
When it comes to stock market trading it PAYS to... Read More
If you don't know what a Roth IRA is then... Read More
If you've ever flipped on the television to CNN Financial... Read More
The stock market can present you with a lot of... Read More
Last time we looked at the real performance of the... Read More
Let's go into the details of why non-indexed mutual funds... Read More
Where is the beef? Or maybe it should be where... Read More
04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More
One Saturday morning, while he was sitting at his computer... Read More
Let me start by saying that...Most online brokers do not... Read More
If you have talked to a stock broker or financial... Read More
Invest in the stock market for the RIGHT reason, using... Read More
Stocks & Mutual Fund |