|Stocks & Mutual Fund Information|
It Cant Be Done
Wouldn't it be nice if you were only in the stock market when it was going up and have everything transferred to cash while it is going down? It is called 'market timing' and your broker or financial planner will tell you "it can't be done". What that person just told you is he doesn't know how to do it. He doesn't know his job.
Even the Federal Reserve wrote an article saying that market timing does out perform the S&P500 index which is one of the best market directional indicators.
There are many advisory services that offer market timing. If you search on the Internet under "Market Timing" you will find them or you may look in various publications such as Technical Analysis of Stocks and Commodities magazine or Investor's Business Daily newspaper. Once you have found several you will find that some have several buy and sell signals each year and a few average only one timing signal per year. Here it depends upon your personality and your approach to the market.
For the active trader the more signals the better and for the longer-term investor the slow signals are best. You will have to do your homework and will want to send for a trial subscription to their newsletters. You might have to try several until you find one you like.
Instead of subscribing to an advisory letter you may decide to make up your own timing signal. It will take some initial work, but once done you will not have to pay anyone else for the service.
Most of these timing methods use two a simple moving averages of from 50 days to 200 days plotted with the S&P500 Index or the NYSE Composite or the Nasdaq Composite if you are investing in the high tech stocks or mutual funds. Yes, this definitely works with mutual funds. The longer the time of the moving average the less frequent will be the Buy and Sell signals. The signal is generated when the index penetrates the moving average line. When the index is below the moving average and goes through it to the upside you have a Buy and visa versa for the Sell. Nothing complicated.
If you want to piggyback the work of Investor's Business Daily look at their Mutual Fund Index where they show both a 50-day and 200-day moving average lines. Both of these methods gave sell signals last September/ October. Would your investments have been more profitable if you had gone to cash at that time? Probably. The 200-day line still has you in cash while the 50-day line had a Buy/Sell in January and a new Buy about April 20.
Basically what market timing does is protect you from any big loss in a bear market. The first rule for all smart investors is to protect their capital. If your broker does not know how to do this you need a new broker.
It's your money. Keep it.
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.
Using Sector Funds to Construct Diversified Mutual Fund Portfolios
'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds.' If all of this sounds confusing, you are not alone. Sector funds are among the more misused and misunderstood investments. So, how should you use sector funds?
You have a lock on your house. You have a lock on your car. You have a lock on your tool shed. Do you have a lock to protect your stock market investments?
Is The Bear In The Cage?
For the last few weeks we have seen the stock market averages going higher and higher each week yet the economic news is still very bad. Is this bear market coming to an end? Will the stock prices and mutual funds go back up to where they were?
Stock Trading Success
The ABC's of Stock Trading Success
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.
Stock Valuation using the SMP Model
Disclaimer: Please note that I do not necessarily purchase, own, or partake of any of the securities or other financial instruments mentioned in this article. I also do not take any responsibility for any actions resulting from any actions taken by anyone who reads this article. You are responsible for your own finances - no one else. Do your yown due diligence when researching financial matters.
Psychology ? How to Reduce Negative Thoughts Relating to Trading?
The thinking process of the brain relating to the psychology of trading involves:
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.
Starbucks Stock is Up
Starbucks earnings are up again and so is their stock slightly. It appears they are exporting America's weakness to caffeine and sugar around the world. This seems to serve the company's profits well and nations like China have quite an emerging population to sell to. Think of the exporting of tobacco and the riches the orient has given. Perhaps this is the answer to our advancing trade deficit. Should you have Starbucks in your portfolio?
The Problem With Hedge Funds
Are hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds. However, just because one is qualified to invest in a hedge fund doesn't necessarily mean they should do so. There is a major problem with this type of investment. Oftentimes, the risk associated with the fund is misrepresented, leading to investors being misguided into skewing their qualifications.
I Love You, Warren Buffet
Sometime around 1980, can't remember exactly, there was a flight of money from many countries to Switzerland. The clock makers had so much money pouring in that the banks took interest rates to zero and even for a period of time were actually making you pay ½% interest to them to put your money in their banks. Yes, it actually happened because people believed their money was going to be safe there. It was.
Stock Market Investing Odds
The greatest stock market myth is the idea that investing in stocks is a form of gambling!
Mutual Fund Commissions
You have heard about a particular mutual fund from a friend, saw it advertised on TV or read about it in some publication thought it would be a good buy. Next you call your broker to get his advice before you buy because he is an expert and is there to help you make money.
What Does it Take to be a Stock Trader?
It takes a total mental commitment to the task. It becomes a complete way of life. You cannot be a part timer. You cannot work at a regular job and trade stocks successfully.
When it comes to buying a stock or mutual fund most people act pretty quickly. There are some who will take the time to get a report from Morningstar (it is worthless) or get reports from their broker (also worthless) or even do a search on the Internet (if you know what you are doing). When your broker says "buy" you buy and when a friend gives you a "tip" you buy.
Reach in your pocket and take out that big roll of bills. Depending on how many of them you have you feel pretty good. BUT did you know they are not worth the paper they are printed on? Huh? Let me explain.
Buy and Hold Investment Strategy
"Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out of every 5 years...so why do it?
Hill of Hope
Just about now everyone is confused as to which way the stock market is going to go - up or down. For the past 3 years it has been headed south, but the Wall Street experts have told us that the market never goes down 4 years in a row so this has to be an up year. But no guarantees.
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.
Mutual Funds are Dead
You may have wondered why your mutual funds have been going down for the past 2 years. The answer is very simple, but not one you will hear from Wall Street as they want you to send money.
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