Wall Street Snake Oil
If you are the average American investor it means you have no idea what or when you should be buying and selling. Stocks? Bonds? Mutual Funds? Limited partnerships? ETFs (Exchange Trader Funds)? Money Markets? Any broker is ready and willing to prescribe his brand of snake oil. Notice I left out 'able'. The brokerage houses require their "experts" to stick with the party line and to recommend only what the house wants sold. It might be a new issue or some excess inventory they want to move. Brokerage houses to this day do not want their brokers to think for themselves or to come up with any creative method to help the customer make or preserve his money. No, that is not what they say, but it is what they do. History has proven that a knowledge of technical analysis is far superior to fundamental analysis. The fundamentalist studies corporate sales, P/E ratios, gross margins, cash flows, earnings, growth, management's background and economic data. When most of these factors look their best is when the market is at the top and gives fundamental buy signals. When they look the worst is at the bottom and that is when these companies are the best buy - sometimes. The best signals are given by technical analysis. With today's computers it is relatively easy to follow hundreds of stocks or funds by setting up specialized programs to alert the investor when certain technical indicators are aligning to give investment signals. These parameters are not subjective, but mathematical. One large portion of technical analysis is based upon charting which is very subjective and requires a great deal of applied apprenticeship. The greatest amount of customer snake oil is made from fundamentals as corporate "facts" are most easily distorted from huge sources of information. It is somewhat more difficult to hide empirical facts especially when placed on charts. Snake oil comes in many forms, but mostly in beautiful color brochures about their projected performance. Pictures of their offices and equipment. On CNBC-TV there will be interviews with the company CEO who will paint a glowing picture of anticipated performance and profits. Fingers are twitching as the investor wants to write a check to buy some of these magnificent shares. Never listen to the company CEO. Do you expect him to tell you any bad news? It takes a while to develop a story and have it seep into the pores of broker/salesmen. They are the targets of many snake oil presentations as these are the people who then sell it to you. There is one way to check out the story's facts. Put up a chart on your computer screen that is from one to three years and if it has a price appreciation that is slowly ascending at about a 30 degree angle this one might be a good buy. If it is declining look no further. Pass or sell out if you own any. Always be cautious. What you might be getting is a big expensive bottle of snake oil. 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 |
Other Online Trading Articles
Forex Investment - Making The Decision Is The Hardest Part When investing in the Forex market, making a Forex investment can be the best decision and can definitely earn you the best profits. Because there is very little in the way of barring entrance to the Forex market making a Forex investment is an excellent opportunity. Especially for those individuals who have low investments to start with, this c ...Aerobics At Home Staying fit and working out is something we all want to do but it normally stops there. We may have the desire but there are always excuses to not workout. Time and money are the big two but even if those are not issues, we can normally find some. Aerobics is a great workout to increase your heartbeat and burn calories. You are not lifting h ...Arbitrage Trading Profits If you are reading this you must be seeking away to work at home with arbitrage trading. Have you ever even herd of arbitrage trading before? Don't worry most people haven’t. Arbitrage trading is still very new to most people surfing the internet looking for ways to create wealth working online.Arbitrage trading can indeed b ...Advantages and Disadvantages of Mutual Funds Outlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. But it's important to remember that features that matter to one investor may not be important to you. Whether any particular feature is an advantage for you will depend on your unique circumstances.For some inves ...Making Money with Electronic Currency Exchange Although Electronic Currency Trading is not easy for the beginner to grasp at first, this is going to be a full on explanation of what is possible to achieve when you get started with the Electronic Currency Exchange Business.Is it true that you can make money with Electronic Currency Exchanging? How can we be clear on this to understand ...The Right Mindset Adopt It and Make Huge Profits Now! One trader who had the right mindset was W D Gann and he built a $50 million dollar fortune.What actually do we mean by the right mindset? Well let’s consider a startling fact first:Fact: 90% of traders lose because they cannot control their emotions. Getting the right mindset is essential and will help you make big profits ...Placing Stock Sell Stops If you follow my articles or my stock analysis, you already know that I am not a supporter of physical sell stops due to the fact that market makers can manipulate these stops during the day. A market maker can drive the price down artificially during trading hours setting off physical stop after physical stop only to allow the stock to rebound ...Online Discount Stock Brokers Discount stock brokers are the most common type of brokers but there are other brokers like full service brokers and money managers.Just about thirty years ago there were only full service stock brokers, offering order execution and investment advice at extremely high costs. Then the first discount brokers came in with low fees just for t ...Arbitrage Trading Software Surebetpro If you are looking for a way to work from home or the office stop looking and please stop wasting your money on programs that do not work, and are scams to get your money. What I am about to tell you will not make you a millions of dollars in a weeks time or a month. What I can tell you though is that this is a REAL business that pays you and is ...Forex Trading - A Basic Overview Forex trading is becoming more popular as time goes by. Perhaps you have heard of forex trading, or heard things such as "the dollar fell sharply against the yen". Not sure what all this means? Here is a basic overview of forex trading.The foreign currency exchange market (forex) is the largest market in the world. Much larger than th ...125% Home Equity Loans - How To Eliminate Debts with a No Equity Loan With a good credit rating, you can eliminate high interest debts with a low rate home equity loan. Borrowing up to 25% of the value of your home, you don’t have to have equity to qualify for a second mortgage. With low rates, you can cut your payments as much as two thirds.Advantages Of A 125% Home Equity LoanThe prime ad ...Gann Angles - The Secret of Better Market Timing for Big Profits! W D Gann was an innovator in technical trading systems and made fortune of over 50 million dollars Gann died in 1955, but his methods live on and traders around the world use them for big profits.Gann angles are a tool used by many savvy traders Quite simply Gann angles allow you to pinpoint your entry and exit levels for great profit pot ...How to Set Up an eBay Business The Internet has provided an alternative avenue for the 'buy and sell' industry. Instead of looking for some items for auction on the classified ads, all you need to do is to log on to an online auction site and you will be able to look for items that you can purchase and sell to other individuals as well. Online auction sites almost have everyt ...Trading the News: Non-Farm Payrolls, October 6th 2006 Why Does The Non-Farm Payrolls Report Cause Volatility?The NFP generally falls on the first Friday of every month and offers an insight into the health of the US labour market. A healthy labour market is an important driver of consumer spending which, in turn, stimulates economic growth and prosperity. The health of the US economy ...Forex Trading Courses - What Can I Expect? In a market where trade in foreign money is up to two trillion dollars a day, a good Forex trading course can be very beneficial. Part of the reason a trading course is a good idea is because only five percent of traders actually make a profit on a consistent basis. This is has to do a lot with those who decide to get involved in the Forex marke ...Forex Brokers & Online Trading There is one important thing you will need to do before you start your Forex trading career. This is, you will need to set up an account with what is known in the trading world as a Forex Broker. Once you start your search for the perfect broker, you may feel there are too many of them who offer their services online. Deciding on a broker requ ...The Basics Of Mutual Fund Classes In order to get the most out of your returns, without paying a high fee, you need to be aware of the different classes of mutual fund stocks and their advantages and disadvantages. Mutual fund companies often charge a higher fee when you opt to invest in ‘high risk high return’ stocks. However, paying higher fees does not necessarily ensure high ...Inverted Interest Rates Inverted interest rates? What’s that? Who cares? Even if you don’t understand what Mr. Greenspan is saying (and almost nobody does) it is important to you because it could mean you might lose you job next year or have to cut back on some of the things you want to acquire.It really is very simple, but most of the media broadcasters don’t u ...Position Sizing - Why Losing isn't Everything! A “so-called” investor questioned my trading methods and claimed I would lose 76% if I took 8 consecutive 8% losses. Knowing me, I had to breathe deeply, release the anger from a person who knows nothing about position sizing and teach him a simple math lesson. The following example is simplified to allow you to understand what is happening. In ...Should You Join an Online Stock Trading Forum? If you're involved in online stock trading then you know how important it is to have timely and quality information. From experience the best way to get this information is to become a member of a good online stock trading forum.Benefits:In any business it's good to be able to discuss things with others in the same field, and if no ...Automatic Link Exchange Factors Automatic link exchange is the method of links being instantaneously switched over with other Internet websites. There are assorted ways of arranging an automatic link exchange with webmasters. The quickest and most effective way to forward emails to another website owner is to perform an automatic link exchange. Many computer users visit web ...Benefits of Using a Stock Broker as a New Investor If you're new to the world of stock trading and investments, you probably realize that there is tremendous pressure in the financial world today. New investment opportunities are being discovered every day that can potentially bring wealth and prosperity to your portfolio. Also, online stock investing has opened the door wide for overseas stock ...Trading Currency Through Online Forex Brokers Access to foreign exchange (forex), the most extensive market on the planet, is generally through an intermediary known as a forex broker. Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex ...Things You Should Know About Stock Trading If you consider the possibility of trading stocks, there are some things you should know from the start. The first thing you should know is what exactly stocks trading mean. Well, first of all, stock shares represent a way companies raise capital for their business. A company issues new stock share, people buy them and the money goes into the co ...Trading Tips No 1: Learn How to Trade The Moment of Truth So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The other half is far more dauntin ...Using the Internet to Optimize Investments Whether you're an investor or you've simply been thinking of making some investments, you may find that the internet is a wonderful tool that can be used to help you get the most out of your money.A variety of online tools can help you to buy, sell, and monitor your stocks and bonds, all the while letting you keep track of trends within v ...Hedge Trading On The Forex Currency Market Trading on the forex currency market can be a volatile yet exciting form of investment and certainly has the potential of bringing vast rewards if done so properly.However it should be accepted that forex currency trading could also be a very risky investment as the market can swing both in an upward and downward movement in a split secon ...Futures Trading Software Futures trading software plays an important role in the economics of speculation. Speculation brings about a gradual adjustment of prices to the contingencies foreseen by the speculator. If a speculator foresees that the market situation after six months will warrant a rise in prices, he begins to make purchases with the objective of selling the ...Online Stock Trading Strategies: The Shocking Facts It`s bad enough that just over 80% of all online investors lose money from day one. It`s even more disheartening that only a small fraction of the remaining 20% ever make consistent profits over time.So, why do so many online stock traders fail?Ironically, they plan to fail!They have no trading plan to begin with. They lack ...Truth About Fund of Funds First let’s understand what a fund of funds is as I seriously doubt your broker has ever told you about them. Why? Because it will take away from his commissions. A regular mutual fund is composed of stocks or bonds. An index funds such as the S&P500 is composed of 500 stocks while a sector fund might have only 20 or 30 stocks. Almost all mutual ...What Are Some Of The Factors That Make Forex Markets Different? There are a number of factors that make the Forex market unique. Many of these factors can have tremendous benefits for traders worldwide. Two of the most important are the high level of leverage and the extremely high liquidity.Forex markets have some unique features that provide an incomparable potential for profitable currency trading ...Prevent Your Adsense Account From Getting Terminated Google, being the leader in search engines till now, is placing a high importance on the quality and relevancy of its search engines. Most especially now that the company is public property, Google has became seriously quality conscious regarding the results it displays.For this same reason, doing the wrong things in the Adsense and other ...5 Useful Tips For Your Success In Forex Trading 1. Implement a trading plan.A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized ...
|
