|Stocks & Mutual Fund Information|
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.
"Hello, Billy Sol (see Billy Sol Estes on Google), this is Joe Mushroom and I want to buy some XYZ mutual fund. What do you think?"
"Joe, I was just thinking about you and was going to call you, but first let me look up XYZ for you. Uh oh! Joe it has a high expense ratio of about 1 ½ per cent. I would not recommend that for you."
Billy Sol fails to mention that XYZ has no load (that's commission) so he would not make any money if you bought it. There are thousands of excellent no-load funds that outperform the load funds. Billy Sol says the fund his brokerage company recommends is ABC and again fails to mention it has a 5% load (commission) and goes on to paint a beautiful picture of ABC and how well it has done in the past 5 and 10 year period. Furthermore the expense ratio is only one per cent which is savings of 33%.
WOW! Joe thinks that sounds pretty good so he lets Bill Sol buy ABC instead of XYZ. Let's see what really happened.
Joe saves ½ percent per year on the expense ratio, but pays and extra 5% up front. Maybe I'm wrong, but if you divide ½% in 5% that goes 10 time. In other words it is going to take Joe Mushroom 10 years to makeup that 5% commission charge not counting what that 5% charge would have made if it had been working in Joe's account for that 10 year period.
What it boils down to is never pay commission for any mutual fund. If the broker will not sell you a no-load fund then get another broker. He is not trying to help you make money. He is trying to make money for himself and his company and may tell you his company does not carry a particular fund because they don't think it is a good. Hog wash. Another broker lie. It is your money and you are entitled to buy any fund. Go to a discount broker who handles that fund and open an account. It will save you a bundle over the years and they are as safe an any big-name broker.
Advice from a financial planner is no better if he is making commissions. The smart method is to have a fee based broker who has a winning track record. Have any financial planner show you his model account. He should have one or maybe several model portfolios. Unless they make money every year he is not a successful money advisor. Don't let them hoodwink you about their performance "is better than the S&P500". That's nonsense. You want to see a cash increase every year.
The first and basic rule is never pay commissions for any mutual fund.
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.
An Old Proverb for Investing
"If you don't know where you are going, any road will get you there."
How To Be A Winner
Everyone who invests in the stock market wants to be a winner. Each person's definition of a winner will be somewhat different, but there is hardly one who isn't looking for that stock that will double in price within one year.
Why Technical Indicators
The fight continues to rage among traders who use technical indicators and those who prefer fundamental information to establish new positions and to exit current positions.
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 you decide to make your living this way you must be willing to work 365 days a year, 7 days each week, 24 hours every day with no time off. I know.
The Information Age
It is wonderful to be alive in the information age. We know in a matter of seconds the change in the value of gold in Switzerland, the death of a world leader or the birth of a peasant in Israel.
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.
Dont Ask Your Broker
Unfortunately, most of you who are reading my column are suffering some substantial losses in the stock market. Whether it is mutual funds or individual stocks everything with mighty few exceptions is going down. Maybe you are just giving back some nice profits, but maybe it is beginning to bite into your original principal.
Jack and Jill
Jack and Jill went up the hill to fetch a bucket of ?money. Money? They are continuing to fill their bucket with stocks without any consideration to the value of these equities. They are not worried at all as they are buying "safe" mutual funds.
Its dinnertime and the phone rings. It's Joe Noname with SuchNSuch Investment Company and has he got a deal for you.
Stock Trading Secrets?
How often have you come across an advertisement or e-mail proclaiming to "teach" you the stock trading secrets that Wall Street Insiders don't want you to know? Usually included in the descriptions of these trading products are claims such as "Make 10K monthly in minutes per day", or "Learn the secrets of Professional Stock Brokers", etc. etc. So what are these "secrets" that they are SELLING?
10 Tips For Creating Wealth From the Stock Market
1. Do not spread your money too thin.
A Good Fund Manager
Every Wall Street analyst, financial planner and broker will tell you that the right way to pick a mutual fund is find a good money manager of a fund that has a long time record.
How to Maximize Your 401k Mutual Fund Returns
When it comes to 401k's there is an overabundance of sad stories. Here is one that at least has a happy ending-and it's getting happier all the time.
Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips
Day trading is all about making buy and sell decisions. When you make a trade either your going to lose money or your going to make money, and some other times you will break even. When you win some body else will lose and so forth, but that's NOT what's important.
I constantly hear the talking heads on CNBC-TV, the radio and other places talking about THE market. Of course, they mean the stock market which actually now is world wide and no longer just concentrated in New York. To every New Yorker New York is the center of the world from which radiates all knowledge and everything else worthwhile.
This Market Is Different
All of the talking heads have been telling us that this market is different. You are going to have to be patient and soon (hopefully in your lifetime) the DOW and the Nasdaq will be back at their old highs. They cite all the statistics about how the economy is improving - consumers are spending, the consumer confidence index looks OK, unemployment is getting better, blah, blah, blah.
Mutual Fund Ball and Chain
The broker told me not to sell because the mutual fund I owned had a 2% redemption fee and they would penalize me if I did.
Mutual Fund Expense Lies
When purchasing mutual funds we are cautioned to read the prospectus, look at past performance, check out the fund manager's record and see what their expense ratios have been.
Is Active Trading The Answer?
One of the main reasons many of us get into investing is to become financially independent. Who isn't trying to amass a portfolio with enough income to ensure that we don't have to work when we should be playing golf or traveling the world. While there are several strategies to invest, is active trading one of the ways to become a millionaire?
Frog In The Pot
You remember the story about the frog that was put into a pot of cold water on the stove. He was not concerned. Someone lit the burner and the water began getting warm, the frog was very comfortable and as the water became warmer he was so relaxed and complacent that he fell asleep ? never to awaken.
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