Evaluation I

An insane person cannot evaluate an insane evaluation system.

As you know I have been trying to restore sanity to the insane premises Wall Street has been teaching its brokers and you for all these years. Their insanity has become so pervasive that it has become conventional wisdom. The brokerage houses have taught everyone to act insanely and to think that what they are doing is sane.

Wall Street has taught you the insanity of doing research, dollar cost averaging and buying and holding. Anyone who can rub two braincells together can figure out that all these are lies. A book written 40 years ago by Nicholas Darvas called "How I Made $2,000,000 in the Stock Market" came to the same conclusions I have, namely, brokers don't know anything and research is worthless. He gives a good explanation as to why he came to those conclusions. You might still be able to get the book at the library as it is out of print.

Why is research worthless? There is one good source of information about almost any listed company as well as many unlisted companies from Morningstar. They are the nexus for stock market information. You can find out more things about a company than you will ever need to or want to know. You will be inundated with information, but there is one thing they do not know. Will the stock go up after you buy it? And that is the only thing that counts.

When you ask your broker about a stock he will go to the company file that has all the statistical information about almost any company. He thinks that stuff is good. If it is so good why doesn't he buy it? Because down deep he knows it is worthless, but he can't admit that to you or even to himself.

His company has taught that you must do research. In his defense he does not realize he has been a good student, but has had a bad teacher. You would think that after doing this nonsense all those years he would catch on, but he doesn't because everyone around believes it is true. He is in an insane asylum. Everyone looks normal.

You cannot evaluate an insane evaluation system with insane evaluation. Once you realize it is insane you must leave it. Don't argue with the insane person. Now you have shaken lose from that weird thinking you will be able to look back on it to wonder why it took you so long to come to your senses.

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

---

Its Better

Question: How does it get better when it gets worse?Last... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life... Read More

The Stock Trading Plan - Why You Must Have One To Trade Successfully

This is the continuing story of our two imaginary traders,... Read More

Valuation

Every day I hear from the "experts" on CNBC-TV and... Read More

Enronization

Even if you don't own any of their stock or... Read More

Market Timing?

The recent criminal fiasco in the mutual fund industry is... Read More

Complacency

During the month of January the Dow Jones Industrial Average,... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Some Good News for A Change

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

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Its A Duck

If it walks like a duck, quacks like a duck... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

VIX

No, this is not a symbol for some Latin number.... Read More

Shorting Stocks ? The Basics, Part II of II

After the publication of the first part of this two... Read More

The Golden Goose is Sick

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

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment... Read More

Is Your Garage Full Of Junk?

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

Ignore Stock Market Talking Heads

You should ignore analysts on TV, the radio, the newspaper... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

The Top 10 Reasons to Invest in Mutual Funds

Everyone who follows the financial news has heard of mutual... Read More

Hedge Funds

You read and hear a lot about hedge funds. Unfortunately,... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Hill of Hope

Just about now everyone is confused as to which way... Read More

The Secret Art of Backtesting

If you have not back tested your trading system, you... Read More

Fools Gold

The stock market has been in an up trend for... Read More