THE GREAT STOCK MARKET SECRETWritten by Al Thomas
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it starts down he jumps off looking for another equity that is going up. The wise trader knows he can’t buy bottom and sell top. What he wants is a big bite out of middle. When you make a sandwich most of meat is in center and a professional trader does same with his trading. He wants to take a bite out of middle of move. You can do this too by looking for stocks, mutual funds or Exchange Traded Funds that have a nice upward pattern. As I said before buying is not secret. Then what is? You must learn to sell - for two reasons.First to protect your equity after your initial purchase and second to keep from giving back profits you have made as equity advances. The great Wall Street secret is an exit strategy: knowing when to sell. Unless you learn to sell will not be successful in market. Brokerage companies do not want you to sell and rarely issue sell signals. You must decide how much you are willing to risk before you buy. The simplest way is with a percentage stop loss order of 5%, 7%, 10%, 12%, whatever you can live with. Instruct your broker to place a trialing stop or you can change it yourself every week. Do not lower a stop. Selling is great secret you will never hear from your broker.
F*R*E*E investment letter www.mutualfundmagic.com Author of best seller "IF IT DOESN'T GO UP,DON'T BUY IT!" Never lose money in the market.Copyright 2004 Albert W. Thomas All rights reserved.Former 17-year exchange member,floor trader and brokerage company owner.
| | Conservative Investors Are LosersWritten by William Cate
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You can benefit from Government borrowing tactic by seeking loans that are below inflation rate. When thirty-year mortgage rates drop below 6%, refinance your home or other real estate assets. If you buy nonperishable goods that you'll need in future, you are earning 6%/year tax-free interest on your risk capital. If you have storage space, this tactic may make sense to you. There are many other self-reliant tactics that are worth considering in your battle to maintain your lifestyle against Government's Inflation Gremlin. The alternative to conservative investment isn't speculation. You will lose your risk capital if you gamble it. If you speculate in a startup business, U.S. Small Business Administration will tell you that your odds of losing your risk capital are about 85%. If you gamble your money on speculative stocks, your odds of losing your money are about 98%. You may beat speculation odds once or twice, but over time, you will lose your money. Anytime you gamble against House, over time, House will always win, because odds favor House. It's way Las Vegas Casinos prosper in good times and bad. You should seek returns over 10% with a risk of capital loss of 6% or less. My advice is always ask how likely you are to lose your risk capital, before you ask about potential return on your money. I'm aware of two strategies that meet these requirements. Both require pro-active investors. It's like buying nonperishable goods to preserve their risk capital. You have to do something to benefit from strategies. I'm willing to supply information on these two strategies to any reader who can suggest other investment strategies that beat Government Inflation Gremlin. You can contact William Cate at: Beowulfinvestments@Yahoo.com
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
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