Ever done any whitewater rafting or canoeing? Long periods of tranquil river followed by short periods of terror. Suddenly the water grips your vessel and you are pushed and shoved by massive currents over which you have no control. Missing boulders you paddle as hard as you can. You almost lose everything and think to yourself, "Why didn't I portage that last rapid?"
Remind you of the stock market lately? Nice steady up moves of equity growth in your portfolio followed by gut-wrenching waterfalls when the market takes back most of your gains.
You got into that canoe because you wanted to. Did you have any lessons on how to control the ride or when it might be a good idea to portage? Maybe you didn't or maybe you got the wrong lesson. You didn't want to crash or drown.
The same goes for the stock market. You might have read a book on how to invest your money or worse yet you might have received information from a broker or financial planner whose reason for helping you is based on commission. If you are a small account don't plan on getting much "help".
Brokers are not taught how to make money. They are taught to make recommendations that will not get them sued if you lose your money. The basic Wall Street tenet of Buy and Hold is totally wrong. Unfortunately, even the brokers believe it. When you have a stock or mutual fund that is going down they never tell you to sell ? "you are in for the long haul". WRONG. Of 33,000 stock recommendations last year only 127 were "sells". After stocks have declined 50% they tell you to "hold". You know where. Brokerage companies do not want to offend the corporate executives and mutual fund managers; they seem to have forgotten who is paying them.
When you are whitewater rafting you had better know how to guide yourself through or around the rapids to the calm water. When you invest in the market you must learn the first basic rule ? protect your capital ? so you won't crash and lose all you have worked for. In canoeing it means learning when to paddle or portage. With investing it means learning when to sell, be in cash and out of the market. Know when to hold 'em, know when to fold 'em.
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.
1-888-345-7870; al@mutualfundstrategy.com
![]() |
|
![]() |
|
![]() |
|
![]() |
Sidney felt sick as she looked at her latest OptionsXpress... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
People are constantly asking me why is the stock market... Read More
In one of my previous articles (Investing in the stock... Read More
We all know that emotions control every decision that an... Read More
One of the most believed bits of conventional wisdom from... Read More
A colleague of mine just returned from a scuba diving... Read More
If you're like many investors who squander those small dividend... Read More
A Guide to Using Stop Loss Orders Stop losses are... Read More
The single most expensive stock market trades are those made... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
If you've ever flipped on the television to CNN Financial... Read More
This is the continuing story of our two imaginary traders,... Read More
One of the great "secrets" of successful people is discipline... Read More
As one of my regular readers you know I have... Read More
We keep hearing about this bear market and that the... Read More
It depends on your level of understanding of the market... Read More
I cringe every time I hear a novice investor tell... Read More
Refuse is a serious issue in any society, about as... Read More
During the month of January the Dow Jones Industrial Average,... Read More
Index Fund Trading can be one of the most profitable...or... Read More
Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More
The big bad bear is stirring again. So far he... Read More
How many times has this happened to you? You're at... Read More
What is leverage?Here is a definition of leverage from an... Read More
Sometime in the third quarter of 1997, someone told me... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
Economists know more about how the fragments of society work... Read More
Forget making a profit; instead focus on the income provided... Read More
We all know the expression, "My country, right or wrong",... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
All stock trading and investing methods must deal with the... Read More
If you are going to be a winner in the... Read More
So you're started trading, you bought some positions with your... Read More
We are already in it, but you can't see it.... Read More
I go to the Money Show every year to visit... Read More
Everyone who follows the financial news has heard of mutual... Read More
Ever have one of those sample boxes of candy? Each... Read More
Let's hope you did not have any of the Enron... Read More
Have you ever thought of investing? Do you have a... Read More
Because there are so many stocks that are NOT paying... Read More
This is the continuing story of our two imaginary traders,... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
When it comes to buying a stock or mutual fund... Read More
The demand for world oil is increasing while world reserves... Read More
As the man said, "I've got some good news and... Read More
Mutual fund investing is a lot like Thai cooking. Everyone... Read More
I know there are a lot of you out there... Read More
On November 17 I bought 7 different mutual funds and... Read More
Money: the most charged word in the planet. It means... Read More
The Law of Chaos is the theory of random unpredictable... Read More
In one of my previous articles (Investing in the stock... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
There is a famous cliff on the ocean in Acapulco... Read More
As I said in Part I everyone in the insane... Read More
Any online investor / trader seeks an excellent off or... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Humpty Dumpty had a great fall and all the King's... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
When it comes to stock market trading it PAYS to... Read More
A colleague of mine just returned from a scuba diving... Read More
If you go to Haiti or other places in the... Read More
When an individual investor wants to roll up his sleeves... Read More
Success in small cap & micro cap stock trading like... Read More
"Buy and hold" is one of the most heralded investment... Read More
If you have been watching the stock market at all... Read More
Stocks & Mutual Fund |