The Holy Grail (of Investment)
Every year I go to the Money Show in Orlando, Florida. Thousands attend. It is mostly an older crowd with the youngsters about 40 years of age. I have been saying for years that until you have lost enough money trying to make a fortune you will not become serious about investing. The under 40's are shooting for the moon and it has finally dawned on the over 40's (maybe it's the over 50's) that they must find a better way to get rich.
The Money Show presents a forum of recognized experts in their field. It may be long-term or short term trading. It could be in stocks, bonds, mutual fund, ETFs (Exchange Traded Funds), oil and gas properties, options, commodity futures, managed accounts and other more esoteric venues.
Each one of the "experts" allows you to listen to him speak (at no charge) to tell you how he has found the secret to stock market success and why you should buy his Holy Grail service. You will receive his (daily, weekly, monthly) market letter for the ridiculously low price of from $250 to $5,000 or more. You may not have found the Holy Grail, but he has.
Almost all of them have a "when to buy" method, but very few have a "when to cash in your chips" method and fewer than that will have any way to protect yourself from losing it all should their Holy Grail method turn into Holy Cow.
The Orlando show occurs in February so every expert has his predictions for the coming year. The only bear I fount was Martin Weiss, but he wasn't a bull in 1999 either. No one wants to hear dire consequences of a bad year for their stocks so the audience is fed the kind of food they like. Everything is going to be even better this years and with my super software (or newsletter) you will make a better return than ever before.
During the three day show there were 396 individual presentations most of which ran about an hour more or less and then there were the extra charges for having breakfast, lunch, tea, whatever with one of the speakers. And these weren't cheap. You could also sign up for all day seminars. In the Exhibit Hall there was always an expert giving a lecture with a great slide show on how his Grail (I am getting hesitant about calling it Holy) will increase your portfolio.
Many investors came to see the guru whose market letter they were receiving. Very few of these mavens are making anyone rich, but there are some. My question to them is are they putting their own money on the line or are these results hypothetical? After attending several of these seminars each day with each presenter showing his magic get-rich formula it would seem these folks would go home more confused than when they came. There is no Holy Grail of investing. At least I have not found it nor do I know anyone who has. Do not rely on someone else to make you rich.' You have to do it yourself.
The real Holy Grail translates into two words - Hard Work.
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
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Series 7 Exam
What is the Series 7 Exam?
If you are looking to become a licensed Stockbroker, you need to know about the Series 7.
The Series 7 is a 250 question exam that when passed, licenses you to act as a Registered Representative.
Dont Lose All Your Money
That sounds like good advice doesn't it? Don't lose all your money.After all what is an investor without funds in the brokerage account? Hint: BROKE!On the subject of investing, this means getting out of a trade when it goes against you.
Stock Trading - Daddy, Why Arent We Rich?
One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?" He looked his child in the eye, and thought to himself, what a great question - Why aren't we rich?As she stood there expectantly waiting for an answer, he struggled to come to terms with the realization that, although he had focused his complete attention on trying to create wealth for more than 10 years, he had never actually made any real headway.He had bought and sold many Stocks and several properties over those years, but had never made any real money.
Buy and Hold Investment Philosophy
Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it.
Trading Systems
To become a successful trader you must have some kind of method or system to follow that will keep you on track. You may be buying and selling on tips, the weather or phases of the moon (there is a system like that).
The POWER of a Proven Stock Investment Plan
When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market.
I Love You, Warren Buffet
Sometime around 1980, can't remember exactly, there was a flight of money from many countries to Switzerland. The clock makers had so much money pouring in that the banks took interest rates to zero and even for a period of time were actually making you pay ½% interest to them to put your money in their banks.
Diversification
Wall Street's watchword has always been diversification, but what does it mean and why do they say it?The standard Wall Street definition is flexible because each broker or financial planner will vary the portfolio based on your age and income. They say that the younger you are the more risk you should take and the older you are the less risk.
Stock Market Diversification
In one of my previous articles (Investing in the stock market -9 powerful tips), tip number one was:1. Do not spread your money too thin.
A Common Misconception about Stock Prices
I cringe every time I hear a novice investor tell me that they only purchase low priced stocks because they offer higher potential gains. A common phase I hear is "I like to buy $1 and $2 stocks because they can double easily and I will make a 100% profit".
Traders, Defend Against the Dreaded Death Spiral.
It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over.
Take The Time
You must take the time once a month to review your investment portfolio. It won't take long - less than one hour, maybe 15 minutes.
The 401(K): How The Insider Has Stolen Your Retirement!
Mutual funds were moderately successful in creating a presence in the stock market until the advent of the investment retirement account and in particular the 401(k). Corporate insiders persuaded the federal government to allow for the 401(k) in lieu of offering employees the traditional pension.
Why Is The Macedonian Stock Exchange Unsuccessful?
The Macedonian Stock Exchange (MSE) is not operating successfully. True, some of the parameters which we use to measure the success of a stock exchange have lately improved in the MSE.
Moving Averages
Every day on CNBC-TV they show a 200-day moving average line superimposed on the stock price history. It seems they give great credence to this manufactured line as it represents 10 months of price action.
Cash
How many people went to a cash position this week? There is no question that this market has scared the bajebers out of many investors, me included. Fortunately, I started going to cash some time ago, but I did give back a substantial amount of my profit.
Overseas Investing: Going Against the Mainstream
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This strategy works in the short term, but can lead to difficulty in the longer haul.
Buying Mutual Funds
It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds.
What Can Model Airplanes Teach You About Trading?
I was devastated!I just couldn't believe it. I was 10 years old and my dreams were shattered.
The Problem With Hedge Funds
Are hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds.