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 www.mutualfundmagic.com 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


Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Trapeze Artist - Swinging with the Stock Market

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

The Top 10 Reasons to Invest in Mutual Funds

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

Your Job

There are so many kinds of work that needs to... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Investment Clubs

Because you don't feel too sure about which stock or... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

Protectionism

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

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

E-mini Day Trading - Day Trading for Beginners - Stock Market Timing Software

I mean it when I say that. While plastic silverware... Read More

Alfred E. Newman

What! Me worry?Many of you remember the cover of MAD... Read More

Successful Trading ? Establish Your Risk Level

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

Discover the Biggest Trading & Investing Online Mistake

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

Its A Bull, Its A Bear, Its Suptertrader!

The higher the market goes the more confusing are the... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

Different Types of Mutual Funds

This is a guide to the different types of mutual... Read More

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

Defining a Long-Term Investment in the Stock Market

For some "long term" would mean holding a stock position... Read More

Diversification

Wall Street's watchword has always been diversification, but what does... Read More

How Covered Calls Turned a Trader Around

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

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More

On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?

Success in small cap & micro cap stock trading like... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

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

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

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