Two for the Money
Look back over the years and try to remember how many different stocks and mutual funds you have owned. Suppose you had owned only 2 different equities during that entire time. One when the market was going up and the other when the market was going down.
And you always make money in both directions probably doubling your money every 4 to 5 years.
You don't believe it. Follow along and I will prove YOU can do it.
You are not going to buy any stock; you are not going to have any short positions. Both are too volatile and shorting is too dangerous. Furthermore, you are not going to change your position more than once or twice a year and there will be no commission paid. You will never have any big losses and you will have some huge winners. Forget about that myth of doing research; you never need it. There will be times you will have one position on for a couple of years. Am I getting your attention?
You are going to buy hundreds of stocks that have their prices smoothed out so you can sleep at night. You buy them in mutual funds and the funds you are buying do not have any commission charge at all. You may want to open an account with these fund families as they do not have brokers who try to talk you in or out of yourbuying or selling decisions. Of course, you can do this with a discount broker. I have no financial connection with these firms. One is Rydex Investments and the second is DAL Corporation. Both are on the Internet.
The mutual fund symbol for DAL is FUNDX and for Rydex it is RYURX. These are seen on the Internet at bigcharts.com or at your broker's web site. Run out a 5-year weekly chart and put in a 40-week Moving Average. This is not complicated. If you have a problem ask your broker and print out both charts.
Look at the RYURX chart and you will see that the price of the fund moves up through the 40-week moving average line on September 20, 2000. You buy this fund for $7.32. For the next two years all your friends are losing their money and your fund is erratically moving up and up, When the price finally turns down below the 40-week moving average line you sell out on April 21, 2003 at $11.88 for a profit of $4.56 per share or 62%. The stock market went in the tank and you made money.
Now you are in cash in a money market account and the next buy signal occurs a couple of weeks later as that upward moving 40-week moving average has started up and is penetrated by the FUNDX mutual fund price on May 5, 2003 at $22.88. As of this date (7/4/05) you are still holding the shares now worth about $35.00 with an unrealized profit of 53%. In less than 5 years you are now ahead more than 148% (not counting taxes). If you have started with $10,000 in 2000 you would now have $24,880.
If you have the discipline to follow this simple method using just 2 funds that are only invested one at a time you can become a millionaire. These are two funds for the money.
Get ready - GO!
Copyright 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 and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street loves to hate.
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exitingMore Stocks & Mutual Funds Information:
Related Articles
Mutual Funds are Dead
You may have wondered why your mutual funds have been going down for the past 2 years. The answer is very simple, but not one you will hear from Wall Street as they want you to send money.
Getting Even
I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope".
Is Your Garage Full Of Junk?
I have a 2-car garage. There are nice shelves on one side and a good practical workbench with a vice on the other side.
Dispelling Illusions of the Stock Market
How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.
Two for the Money
Look back over the years and try to remember how many different stocks and mutual funds you have owned. Suppose you had owned only 2 different equities during that entire time.
The Golden Goose is Sick
It is finally catching up with them. The brokerage companies I mean.
The Skinny on Mutual Fund Investing
Mutual fund investing is a lot like Thai cooking. Everyone has heard of it, most know a little something about it, but very few actually know how to do it and do it well.
Protect Your 401K
Checked your 401K lately? Going back to about a year ago many of these retirement accounts have shrunk by 30%, some even more. What Happened?You have been putting money in for years and your employer may have been contributing to your plan also.
Will the Stock Market be Lower in October?
The stock market often closes a week in the middle of a "perceived primary-trend range." SPX closed at about 1,234 Fri, which is between a multi-year Fibonacci level at 1,253 (i.
9 Deadly Trading Mistakes!
The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!1.
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.
"Fears Only Enemy Is Action"
What a great statement!I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials.Fear is a huge issue with a lot of traders.
Trading as a Business
What can I expect to make my first year of trading?We get questions like this one quite often. We find that most aspiring traders don't have a clue as to what to expect from the market.
Parachute Investing
Ever jumped out of an airplane? It's OK if you have on a parachute. Pretty dumb if you don't.
The Next Bull Market
We are already in it, but you can't see it. It doesn't look like the one we had in '99.
Finding A Good Stock
One of the things people are always asking me is how can I find a good stock. The answer I give does not please them.
Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips
Day trading is all about making buy and sell decisions. When you make a trade either your going to lose money or your going to make money, and some other times you will break even.
The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets
A Guide to Using Stop Loss Orders Stop losses are market orders designed to allow you to limit your losses.When you place a stop loss you are instructing the spread betting company or stock broker to cut your position when it reaches a certain loss level (or in some cases, profit level - more later).
Discipline
One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.Before you can have that discipline you must have a successful plan and stick with it.
Adding Funds
Someday you may want to retire and continue to live in the life style to which you have become accustomed. According to conventional wisdom you will need less money because you will have fewer expenses than when you had to go to the office every day.