Never Lose Money in the Stock Market
If you are under 50 years of age and have not lost money in the stock market I don’t think you will find this article interesting. Why? Because you still think you can make a killing in the market. Until you have lost a lot more this method of investment will not interest you. Dad and Mom can try to get the kids to pay attention, but it is doubtful that they will. Each will have to learn on his own, but maybe a few will see the wisdom of slow but sure. Every professional trader I know (I was an exchange member and floor trader for 17 years) will tell that you must have a plan for both buying and selling. Any plan must minimize risk for the professional and for the nonprofessional it must be so simple that even a retired widow with no market knowledge can execute. Wall Street prefers to keep investors confused with financial terms so they will have to go to a broker or financial planner for “advice”. Advice from a broker is a eulogy for your money. They have been taught by the big brokerage companies and they have been taught wrong. They do not make you rich; they get rich off of you. Now let’s go through the steps to make money and protect your investments. This very simple method is as foolproof as any I have ever seen. It is one you can do by yourself with no help from any broker. In fact, most of them will not want you to do this as there is no commission and very little trading. Turn on your computer; make the connection to the Internet. In the address box type in www.bigcharts.com . In the white box type in JAVLX. That is the symbol for a mutual fund. Click on the red box. On the left is a blue column. Under Time frame select the down arrow and click on “1 decade”. Scroll down. Click on “indicators”. Scroll down a little more. Click the down arrow for Moving Averages. Select SMA. In the box to the right type in 200. Go back to the top and click on Draw Chart. Note when the 200-day line turned down (November 2000) it was a sell signal and time to put your cash in a money market account. Wait. Collect interest. When the line turned up (April 2003) it gave a buy signal. Buy your no-load fund back. (Only buy no-load, no commission funds.) This buy/sell 200-day line will work for almost ANY mutual fund. Follow the little red line to wealth. Go back. Check this out for any mutual fund or index fund you might have owned in 2000. Being in cash from 2000 to 2003 would have saved your retirement account; a money market account had a greater return than being “invested”. Never lose money in the stock market again. 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 no charge at http://www.mutualfundmagic.com. Discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved. |
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