The Surgeon General

The Surgeon General of the United States says that smoking cigarettes is harmful to your health. It is printed on every pack of smokes you buy. When was the last time a smoker read or paid any attention to it?

Don't you wish your brokerage account had some kind of warning telling you when to sell out of a stock or mutual fund that is going down? How about "If this stock falls more than 12% below its highest closing price the Money General says it should be sold and the money reinvested in a different equity"? Think of what that would have done for your financial health during the past 2 years. Most people would be feeling a lot better.

Your broker is supposed to be a doctor of finance and should be concerned about your financial well being. When you ask him why your portfolio has gone down you probably will get one of two answers ? "Don't worry, the market always comes back" ? except when it doesn't. And "Buy and hold is the best strategy when you are in for the long haul". That long haul may be 20 years to break "even". Of course, that does not make you feel any better when you see your money disappearing. It all comes down to the fact he does not know how to do this and has not been trained by the brokerage company. The same goes for most financial planners.

Financial planners will tell you how to split up your investment among stocks, bonds, mutual funds, real estate and so forth, but they have no idea when to sell out of a losing position. Neither brokers, bankers nor financial planners have ever heard that cash is a position. Yes, cash in a money market account will not make big returns, but it will protect your money while the stock market is in a general slide down. Think about this: what if your money had been in a simple 3% money market account for the past 2 years. Would you have more money today? Probably.

It is very difficult to find a broker who has any training in protecting your assets. If you ask to see the training manuals for brokers you will find two. One concentrates on learning all the rules and regulations of the Securities and Exchange Commission so they will not be sued and the other is a Sales Manual on how to open new accounts and get investors to put in more money. No instruction on how to protect the investors money when a stock or fund starts down. The one thing they are never taught is when to sell.

If you expect to have financial health you must learn how to wisely invest your money. There is no Money General or Easter bunny. You cannot rely on any "expert". Just as you are responsible for the health of your body by what you put into it so your financial health is up to you by making sure you do not lose what you are putting away for your retirement.

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

---

Enron Cure

Let's hope you did not have any of the Enron... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Overseas Investing: Going Against the Mainstream

TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More

My Stock - Right or Wrong

We all know the expression, "My country, right or wrong",... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

What the SEC Really Thinks About Mutual Funds!

Let's go into the details of why non-indexed mutual funds... Read More

Take The Time

You must take the time once a month to review... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

Online Investing & Stock & Share Trading: 4 Reasons Why Most Online Investors & Traders Go Broke

Are you attracted to the idea of being in control... Read More

Smart Day Trading Strategies to Help You Make Money in the Stock Market

Stock trading can be a very profitable activity. You can... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

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

Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor

Recently I was invited to appear on a live CNNfn... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

The Stock Market - Part 1: Believe It Or Not, Its Always Been Your Best Friend And Always Will Be

Regardless of the fact that the world's stock markets have... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Protectionism

First let's see what protectionism is. According to Mr. Webster... 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

Investment Discipline

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

Structured Settlement; Lawyers in NY and Mutual Funds

Minority Report the movie may not be far off if... Read More

What the Hell is a Stock option?

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

Why Investors Use Financial Planners

Do you have a financial planner? Does one of your... Read More

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as... Read More

Bottoms Ups

If you have talked to a stock broker or financial... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

Pathways

During our travel down life's path we come to many... Read More

The Holy Grail (of Investment)

Every year I go to the Money Show in Orlando,... Read More

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading futures.... Read More

Getting Even

I know there are a lot of you out there... Read More

Inertia

One of the basic laws of physics is that a... Read More

Ignore Stock Market Talking Heads

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