The 10 Commandments
Wall Street has been preaching for years and years to investors how and where to put their money. The "experts" have put forth these ideas for so long that they seem to be carved in stone just like Moses did with God's 10 Commandments. The only difference is that what Wall Street preaches is lies that will make you broke.
It will be difficult in this short space to elaborate on them, but please stop and give a long think to all of these commandments.
- Do research
- Buy and Hold
- Dollar Cost Average
- Diversify
- Buy a good stock and put it away
- You can't afford to be out of the market
- Never try to time the market
- Rearrange your portfolio with age
- Your broker will watch your account
- The market always comes back
The first 3 are preached by every broker who breathes. Consider that if you can find out about a company so can everyone else so what good is it? If you haven't figured out Buy and Hold by now you are either broke or have not owned any stock. Dollar Cost Average is only for suckers - you could have bought Enron from $90 to nothing. When your broker says diversify he means he doesn't know what to do with your money so he recommends putting some here and some there and a little in the safety deposit box or under the bed and hopes some of it will make a profit. He doesn't know.
Hope is the most expensive word in the dictionary of any investor.
Buy a good stock and put it away. That is what the talking heads in CNBC-TV have been saying. Brokers, analysts and financial planners touted Enron last year as a quality stock. Even their bonds carried an investment grade rating. I don't mean to leave out Xerox, Global Crossing, Pan American (for you old timers) and about a thousand others if you want to take the time to look. I am not exaggerating. In 2000 there were more than 1,000 stocks on the Nasdaq that lost 90% of their value.
Charles Schwab says you can't afford to be out of the market. He wants to keep your money. I'm sure he will say you can't time the market, but there are many of us who have been doing it for years. When they say that I know they have not taken the time to learn their trade - investing to make money. Rearrange you portfolio with age should be rearrange your portfolio to make a profit and not lose what you have.
Your broker will watch your account - get smaller. He never tells you to sell those losers or put in a stop-loss order. And you know because you have been told so many times that the market always comes back - except when it doesn't, especially to the stocks you own.
Put these lies, oops, commandments, up on your wall and recite them to your broker when he calls or you might want to send him a copy.
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
.
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Perfect Storm
Having lived aboard a sailboat for 2 years I was stricken when I saw the movie "PERFECT STORM". I know these are things you want to avoid at all costs.
Race Horses and Mutual Funds
For years investors have been taught to look into the composition of a mutual funds. In other words the "experts" want you to take the time to analyze the stocks within the mutual fund portfolio, categorize them by industry group and try to understand the objective of the fund manager.
Stock Chart Reading
As an investor you will want to check out any equity before you buy it. Many investors go to Morningstar which is one of the largest providers of mutual fund information in the world.
Stock Investment Advice
Stock investment advice is easy to find. Do you get cold called by brokers with the latest investment tip? I have, as have countless others around the globe.
Trapeze Artist - Swinging with the Stock Market
When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall.
The Value of Stocks of a Company
The debate rages all over Eastern and Central Europe, in countries in transition as well as in Western Europe. It raged in Britain during the 80s: Is privatization really the robbery in disguise of state assets by a select few, cronies of the political regime? Margaret Thatcher was accuse of it - and so was the Agency of Transformation in the Republic of Macedonia.
Big Buildings Can Mean Big Economic Disaster
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New York City, to be the world's tallest building, economist Mark Thornton offers a history-based theory of the relation between super-buildings and the economy. Thornton surveyed economic performance worldwide following the completion of each of the world's tallest skyscrapers, and suggests what these events foretell.
Valuation
Every day I hear from the "experts" on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man's Rembrandt is another man's connect-the-dots and fill in the spaces.
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.
Seecrets on Investment: Tired of Making Huge Losses in the Stock Market - Part 2
Fundamental analysis.Fundamentals analysis says the best way to predict the future trends of a stock is to understand the financial figures of the underlying company.
Dont Buy Worldcom! A Guide to Wise Bottom Fishing
Over the past few months, several investment professionals have brought up the topic of the down-and-out company of the day and whether to buy now as a speculation. Last year, K-Mart was the big news, and everyone wanted to know whether this was a good stock play.
Intervention
Intervention. Now don't let that big word scare you.
Mutual Fund Ball and Chain
The broker told me not to sell because the mutual fund I owned had a 2% redemption fee and they would penalize me if I did.I got to thinking about it and did some simple math to see what that would cost me if I sold.
Stock Trading Success
The ABC's of Stock Trading SuccessStock trading success..
Gold Fever
Right now there doesn't seem to be any "gold fever". Very few are out looking to strike it rich in this sector.
Staying Sane While Wall Street Crashes
Everybody is riding the Wall Street Roller coaster. Even if you are not invested, the headlines scream out one word: PANIC!It's hard not to join in the panicking.
KISS Formula
There are formulas for just about everything, but it has been shown that the simpler the formula or method of doing a particular task the better it works. It has evolved down to KISS - Keep It Simple Stupid.
Overvalued & Underbought
With all the bad news that has been dumped upon the economy for some reason the stock market is going up. Why?The SEC (Securities and Exchange Commission) has just set up new guidelines for core earnings.
This Market Is Different
All of the talking heads have been telling us that this market is different. You are going to have to be patient and soon (hopefully in your lifetime) the DOW and the Nasdaq will be back at their old highs.
Investing in Trash Company Stocks
Refuse is a serious issue in any society, about as serious as cleaning the water and air, even more so to some degree, especially if you study your history with regards to the plague. This is why it is considered one of the better long-term hold stocks to have in one's portfolio.