Forecasting the Stock Market
Every day I see in the financialsection of newspapers how to forecast what themarket will do in 6 months, 12 months, severalyears. "Ten stocks that will double in the next 6months." Right! I have trouble trying to forecastwhat it will do tomorrow. Do not trust any whoclaims he knows what the future will be for themarket.
Of course, your broker will send yougobs of slick material about various companiesthat predict they will double or triple in thenext 12 months. On the New York Stock Exchangethere will be about one half of one per cent(0.5%) of companies that will double this year.Are you smart enough to pick those winners? I'mnot and I am considered a professional trader. AndI am sure your broker isn't either. He just wantsto make a commission and is probably promoting astock his brokerage company wants to push.
Every investor wants to know thefuture and will send money to some "expert" whowill send him news about a company that only (?)he knows. And pigs can fly. One thing about themarket. It is almost impossible to keep a secretand everyone knows everything about othercompanies. As soon as some "analyst" finds acogent fact that can influence a stock price hewill share that "secret" with a few close friends.Within minutes the "secret" is known by hundredsof thousands and is immediately reflected in theprice of the stock.
If you do get sucked into one of thesemoney traps by some smooth-talking salesman ornewspaper verbiage I strongly suggest youimmediately plan your exit strategy. Without anexit plan you can easily lose a large amount ofyour "investment". This is not an investment; itis a gamble and should be treated as such. Thefirst thought of any professional trader is 'if Iam wrong how much am I willing to lose'? Maybe 2%,5%, certainly no more than 10%. Pros understandthat small losses are OK, but never take a bigloss.
From 1982 to 2000 it seemed everyonewas a financial genius. How many of those folkskept those big winnings from 2000? Almost none.Most lost 40% to 60% of their money. Brokers said,"Hang in there. You are in for the long haul".Unfortunately he did not tell you that ModernPortfolio Theory is based on a 40 year time line.
Yes, but understand you don't need topredict anything. Don't forecast. What you caneasily learn is follow the major trend. You boughtin 1982 and you sold out in 2000. The trend can befound in many ways with the simplest being postedevery day in Investors Business Daily newspaperunder the IBD Mutual Fund Index. When the Indexprice is above the 200-day moving average you ownequities and when it is below you are in cash orbonds. Nothing complicated,
Don't try to forecast the market. Let the markettrend tell you.
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.
Hedge current portfolio positions and gain access to capital resources through loans against free trading, aged affiliate or aged non-affiliate securities. Make proper use of your assets while waiting for performance and hedge your position should the asset move against you.
Bargain Basement - Finding Stocks That Go Up
Have you been listening to the talking heads on CNBC-TV? Or those talk radio stock experts? Getting all those good recommendations on what to buy now. Now?
Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor
Recently I was invited to appear on a live CNNfn television show to discuss my article "How to evaluate Load vs. No Load Mutual Funds." (You can read that article on my website http://www.successful-investment.com/articles21.htm)
The Surgeon General
The Surgeon General of the United States says that smoking cigarettes is harmful to your health. It is printed on every pack of smokes you buy. When was the last time a smoker read or paid any attention to it?
The Big Bad Bear
The big bad bear is stirring again. So far he has stretched, yawned and peaked out of his cave. After his almost year-long nap he is hungry. A nice big steak would hit the spot.
Nest Eggs and Omelets
Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. How're you doing?
Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices
Invest in the stock market for the RIGHT reason, using the RIGHTchoices!
We have two candidates for president that have really different ideas on how to make the economy grow.
Stock Market Volatility
In my opinion, due to the volatility of stock market prices (the rise and fall of stock prices), an investment plan should incorporate both the traits of stick-to-itiveness and common sense, and must have an advantageous, predetermined approach for maximizing each investment in the stock market.
Every day I hear from the "experts" on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man's Rembrandt is another man's connect-the-dots and fill in the spaces. Valuation is like beauty. It is in the mind of the beholder.
Let's hope you did not have any of the Enron stock. Maybe you know someone who did and lost everything, but you certainly might know several people who owned stock that lost almost everything. They probably aren't talking about it.
Are you one of those many people who dread reading their 401K statements? You have been watching it decline for about 2 years and are wondering if will ever stop. Just about everyone says the market will come back. Brokers say you are in for the long haul so don't worry. Any account that drops to a 50% loss has to go up 100% to get "even" and that is a very difficult phenomenon. If you have an 80% loss as has already occurred in the Nasdaq you would need a 400% rally to get "even". At 90% you have to see a 900% rise to that mythical "even".
There are formulas for just about everything,but it has been shown that the simpler theformula or method of doing a particular taskthe better it works. It has evolved down toKISS ? Keep It Simple Stupid.
Historical Briefing: Stocks, Finance and Money
The World Bank claims that some two billion of the world'scitizens live on $1 per day or less! That fact absolutelyshocked me. With this statistic in mind it becomes important tofocus on all of the things that have served as money over thehistory of civilization. Aztecs used Cocoa beans, Norwegiansused Butter and dried cod, many Indian tribes used animal skinsand some of the early colonists used grains. It's worth thinkingabout this the next time you pick up your paycheck. The word"salary" is derived from the word SALT, which is what was thekey currency of the North Africans for hundreds of years. SALTwas a key commodity substance used for preserving food.
Maximizing a Stock Market Investment
Maximizing a stock market investment
Choosing A Fund
For years I have been saying you must have a fund that is outperforming the S&P500 Index. Well, I've changed my mind. Now I think your fund should be outperforming the NASDAQ Composite Index. So far this year, March 30, the S&P is up 1.3% and the NASDAQ Composite is up 9.5 %.
Four blind men were asked to give a description of an elephant. They had not seen one or ever encountered such a beast.
What is the Most Important Indicator of All?
Most stock market traders have a favorite technical indicator.
How to Read an Annual Report
Every publicly traded company is required by the SEC(Securities and Exchange Commission) to provide annual reports to it's shareholders, and the general public as well. These annual reports contain very important financial information, as well of summaries of the companies progress made by the CEO, board members, etc. I use annual reports to decide whether or not im going to buy stock in that company.
Price to Earnings Ratio - P/E
After finding the price of a particular stock, usually the next number everyone looks at is the P/E ratio.
|© Athifea Distribution LLC - 2013|