Stock Chart Reading
As an investor you will want to checkout any equity before you buy it. Many investorsgo to Morningstar which is one of the largestproviders of mutual fund information in the world.It is assumed that their information is correct.After all that is what you are paying for.
Recently the SEC (Securities andExchange Commission) called them on the carpet fornot correcting an error within a reasonable time(whatever that is according to the SEC). Everyonemakes errors and this was no big deal.
It seems that when you went to theirsite and drew up a chart or asked for statisticson Rock Canyon Top Flight mutual fund it failed tonotify the potential buyer that the fund hadissued a very large dividend of approximately 25%and the NAV (Net Asset Value) dropped from $15 to$11 to reflect the $4.00 dividend.
When you ask for a chart of this fundon MarketWatch, Yahoo, TheStreet or Bloomberg theyonly post the NAV and do not make any adjustmentfor the dividend or capital gains distributions.Looking at the chart it appears the fund fell outof bed. Because I look at so many charts I knewimmediately that this was a distribution and notsome calamity. It is best to call the fund toverify this.
Most funds that make dividend and capital gainsdistributions usually do so in December, some inNovember and very few at other times during theyear.
Some nitpicker called the SEC and madea complaint about Morningstar. Not that I am a bigfan of them (in fact I think their reports areworthless) they get their price information fromother sources such as the above. If you are notfamiliar with the requirement of mutual funds todisburse their profit before year end you might befooled when you see the price suddenly drop.
This is important for potentialinvestors. I caution everyone to get a chart onthe Internet of at least a one year performance ofany mutual fund before buying. It is better to goback to year 2000 to see if the fund manager wasable to keep from losing money during the last 4years. Almost none of them could so they bamboozleabout how they did better than the S&P500 Indexwhich had a huge loss of 50% and remains down 25%from those highs at this time. Don't fall for thatone.
Once again I caution that any purchaseshould have an exit plan. One of the basic rulesof investing is never to lose a lot if you arewrong. Small losses will not ruin your portfolio,but big losses can ruin your retirement. Set yourloss limit (5%, 10% or ?) and stick with it.
Charts can help you withbuying/selling decisions, but check out theiraccuracy as charting is not an exact science.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make moneyand 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 doesnot want you to know.
Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??
Well maybe that's overstating it a little, but it's certainly one of the most important.
Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal."
Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?
When it comes to stock market trading it PAYS to have more knowledge than the rest of the pack. Pure gold can be harvested in each profitable trade that you accomplish.
My Neighbor Got A New Car
I don't know what kind it is, but I saw iton TV running full speed along the shore (I don'tlive near the shore) throwing up spray or maybeit was that one climbing up the steep mountaintrail thru the mud, rocks and snow. Veryexciting. (I don't live near the mountainseither.) WOW! Just what I need.
Choosing a Stock Broker
If you were to find that you had some severe illness that required surgery, would you attempt to perform that surgery upon yourself? What if your car broke down and needed a valve job? Would you get out the Craftsman tool set you got for Christmas three years ago and start tinkering under the hood even though you know absolutely nothing about engines? Of course you wouldn't do either of these things because there are times in life when we know we must seek the assistance of a professional. So why is it that so many people try to make their own investment decisions without consulting a professional stock broker?
How to Evaluate Load vs. No Load Mutual Funds
If you have been dealing with mutual funds for any length of time, you undoubtedly have faced the question of which is better: Load Funds or No Load Funds. If you are new to investing, "load" simply refers to the commission paid to the broker selling the fund. "No load" means there is no commission on the purchase or sale.
Cash Is A Position
I go to the Money Show every year to visit withfriends who have booths and are speakers. Thenwhen folks are filing out of lectures I listento their comments on what I know the speaker hasbeen saying.
What is a Mutual Fund?
Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the "investment adviser."
Investment Attorneys and Garbage Stocks
How is it possible that trash Companies are posting less than expected results? Trash Companies are thought of by prudish investors as some of the safest stocks to own. Ask Warren in his Buffet of Essays on Corporate America. Companies which service the needs of the people tend to stay afloat longer and respond very little to economic down turn. Most investment advisors and attorneys would agree. And anyone who has ever stopped to ponder the idea of recession proof businesses would inevitably put Trash and Refuse companies at the top of the list. What other companies? Environmental Companies, Security Companies, Cigarette makers, vice industries (gambling, drinking, risqué type businesses).
The Golden Goose is Sick
It is finally catching up with them. The brokerage companies I mean. For years they have been feeding bad food to their flock and now the flock is rebelling. The customer has been low man on the totem pole for too long. That food has been the disinformation that has caused customers to lose large sums of money.
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. I say, "You are not qualified to pick stock. You don't know how so don't try. Put your money in a no-load mutual fund that is going up".
Structured Settlement; Lawyers in NY and Mutual Funds
Minority Report the movie may not be far off if the Head of the SEC has anything to say about it. At a Senate Banking Committee hearing on CSPAN, William Donaldson said that the beloved SEC can no longer sit back and "mop-up" after scandals break. This idea of Mopping up is interesting, because if the SEC has anymore regulations then everyone will be reduced to cleaning homes for a living although even Service Master owner of Merry Maids is doing lots of legal insider trading of their stock options and that alone is telling us that maybe just maybe all that Form 4 Action is a sign of things to come?
Lights of the Stock Market
There are red lights, green lights, blue lights and spot lights. There are orange lights, pink light and flash lights. There are search lights and micro lights. And the one you must obey is the stop light.
More Window Dressing
Two weeks ago I wrote about what the Securities and Exchange Commission was doing to regulate the mutual fund industry to help the small investor, the "poor folks". It really added up to zero.
Trading Tips No 5: Stock Trading Curve Drawdown and Commitment
All stock trading and investing methods must deal with the inevitable drawdown from the most recent peak in one's stock trading curve to a bottom before reversing and making a new high. Seasoned systems traders are well familiar with the drawdown phenomenon and the importance of drawdown as a percentage of annual average returns in evaluating a trading system. On the other hand, many "investors" that follow a "buy, hold and hope" approach to the markets for the long term, don't think in terms of a drawdown when their portfolios drop in value by 10%, 20%?75%, as has happened in the past few years. But what they have experienced is an stock trading curve drawdown.
The Stock Market Doesnt Care if You are a Beginner?. Get Prepared to Succeed at Trading
Stock trading remains a very competitive field and the stock market doesn't care if you are an experienced stock trader or an aspiring one. The rules and the trading opportunities are the same for all of us, so either youre going to make money when you pick a stock and make a trade, or you are going to lose some of it in favor of the more seasoned traders.
Stocks: Understand What You Buy!
"There is nothing more frightful than ignorance in action!"Johann Wolfgang von Goethe (1749 - 1832)
The POWER of a Proven Stock Investment Plan
When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. With the right type of investment plan and investment choices all worries of losing money in the stock market will disappear.
As the man said, "I've got some good news and I've got some bad news. What do you want to hear first?" It was replied, "Tell me the good news first". The good news is that they are going to make some changes in the mutual fund industry reporting to help the investor and the bad news is it isn't going to make any difference in your bottom line.
If you have talked to a stock broker or financial planner in the last few days I will bet they all agree that there are some great bargains out there and now is the time to start buying in anticipation that the market will go back up. You will also find agreement from the talking heads on CNBC and those talk radio station stock mavens. No one says sell. It looks like bottom pickers heaven.
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