Nest Eggs and Omelets

Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. How're you doing?

If you have been putting it in the stock market you have been watching it get smaller instead of bigger. Your nest egg is becoming an omelet instead of hatching into a wonderful creature. There are places for your money, but for the next few years you will be better off in a simple savings account or money market fund.

Stay away from the big name mutual funds. If you don't believe me have a look at what they have done with your money for the past 3 years. Most have lost about 50%, some 60% and more. Their story now is they are "cheap" and a great buy; they can't go any lower - but they probably will. Mutual funds only work in a bull market and the bull was chased back to the barn in 2000. The bear is now out of his cage and has the run of the premises. When the stock market bubble (let's call it an egg) broke 3 years ago your broker, financial planner, banker had no plan to protect your capital. None of them had ever seen a bear market and none were trained to protect customers' money. Brokers are salesmen and are not there to help you make money even though they think they are. Their employer not once has ever told them the great secret of the market. That secret - SELLING. Having been a member of the exchange and a floor trader for many years I learned how and when to sell. If you didn't you would not last very long. You would be broke.

There is a way to keep your egg from becoming fried, poached or scrambled, but your broker will not tell you. Most of them don't know and their companies don't want you to find out. Selling and putting your cash in a money market account does not make them any money.

There is a thing called a stop loss order for stocks. The simplest one is for 10%, but you can make it any amount you wish - 5%, 15%, whatever. The best time to calculate your stop is Friday or Saturday. If your stock is $40 you figure 10% or $4.00 and you call your broker on Monday morning and tell him to place a Good 'Til Cancelled Sell order at $36. As your stock advances move the stop-price up, NEVER down. This allows the market to tell you when it turns weak rather than you trying to guess when to sell. Your stock might go to $100 before you are stopped out at $90.

Now is the time to protect all your eggs with a big soft stop-loss cushion.

(c) 2005

Al Thomas' best selling 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 to receive his market letter for 3 months at to discover why he's the man that Wall Street does not want you to know.

In The News:

pen paper and inkwell

cat break through

Enron Cure

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

Successful Trading ? Establish Your Risk Level

Before you embark upon a journey of trading stocks or... Read More

Advisory Service for You?

It depends on your level of understanding of the market... Read More


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

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Living Trust Investing: Income Considerations when the Grantor Dies

A common problem I often see when working with living... Read More

The Big Bad Bear

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

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

China Syndrome

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


When is a dividend not a dividend?The latest thing "conservative"... Read More

Why This Bear?

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

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains... Read More

Humpty Dumpty the Stock Market Falls Down

Humpty Dumpty had a great fall and all the King's... Read More

Trapeze Artist - Swinging with the Stock Market

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

Stock Loans

Hedge current portfolio positions and gain access to capital resources... Read More

9 Deadly Trading Mistakes!

The following are a list of nine things you want... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

How to Evaluate Load vs. No Load Mutual Funds

If you have been dealing with mutual funds for any... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

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

What Our Investment Advisor Wont Say Off The Bat

Most advisors will tell you they can beat the market.... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Buying New Issues

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

Discover the Biggest Trading & Investing Online Mistake

Any online investor / trader seeks an excellent off or... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

When Should I Sell?

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

Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices

Invest in the stock market for the RIGHT reason, using... Read More

The Value of Stocks of a Company

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