Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness. His brain was very small and he did not survive.
There is a T-Rex among us today and it is disguised, but it is killing us in another way. This T-Rex is killing and eating our retirement portfolios. You may have noticed your stock account has lost some of its value during the past 3 years. Something or someone is nibbling away at it. It has gotten so bad that many people don't even want to look at their statements every month. Is there a way to keep the beast, whatever its name, from completely eating everything? Yes, there is.
Currently there is an advance in the stock market and you have been told by the talking heads on CNBC-TV that the bull market has resumed and it is best to "put whatever cash you might have into the market. Don't lose this opportunity to make back what you have lost".
This is a very sneaky T-Rex. It is out in the bushes and it may not have seen you yet. If you still currently own any equities you want to protect them from the beast. If this is a new bull market you may want to participate. OK, buy something, but you must know where to run to hide should the T-Rex come out again. How?
Now, I said now, you must decide how much you are willing to risk from here, not where you were 3 years ago. Don't try to get "even". You can't. As this market rises you should be following every stock you own with an open stop-loss order. It could be 8%, 10%, 15%. Whatever you feel comfortable with. Do not try to outsmart the beast. Listen for his return and have your protection in place so it will automatically be triggered when T-Rex returns.
None of us knows how long you will be able to graze in the green pastures. It may only be days, but could be months or longer. If you are cautious the monster will not get you. The market itself will tell you when to run for shelter. No guessing. That is the wisdom of a stop-loss protection.
Take a few moments to review your stock and mutual fund holdings of 2000. Look up the price at that time for each issue. If you had placed loss protection on each one how much would you have saved?
In a bear market the best offense is a good defense. Don't let T-Rex get you.
Al Thomas' best selling book, "If It Doesn't GoUp, Don't Buy It!" has helped thousands of peoplemake money and keep their profits with his simple2-step method. Read the first chapter and receivehis market letter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2004
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 429, exiting
What My Horse Had For Breakfast
Let's see, he had some oats, fresh alfalfa and his vitamins. I know from the mixture that is great food and he will win the seventh race this afternoon.
Missleading Fund Names Wreak Havoc On Investor Returns!
Mutual fund managers use fake fund names to part you from your money such that you cannot judge what a fund does by its name. Many funds have names that are outright misleading or even deceptive.
How to Setup a Profitable Trading Business
In my opinion trading is the most exciting and best way to earn a living in the world. With just a small amount of equipment and space you can do it from anywhere on the planet.
Find Your Investing Soulmate on the Jersey Turnpike
As a followup to a previous column, "Irreconcilable Differences," I received an e-mail from a reader asking how she could ensure, ahead of time, investment compatibility with a future spouse.Unfortunately, like most issues in life, the direct approach does not work.
Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope
So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge.
Your Worst Enemy To Successful Investing - The Media
How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to be aware that for every expert, there's an opinion and for every opinion there's an expert.
For Entrepreneurs A SIMPLE Plan May Be Best
Q: I own a small decorating business and I'll be the first to admit that I don't know anything about taxes or retirement plans. I'd like to set up a 401(k) or an IRA or some other kind of retirement plan for me and my three employees.
Investing for Retirement - Not an All or Nothing Play
In 1519, Hernando Cortes, beached on the shores of unexplored Mexico, made a fateful decision: he would burn the ships he and his men arrived in and attempt to overthrow Montezuma and the mighty Aztec empire. The decision was risky.
"Financial planners are like dentists: they may occasionally inflict pain, but in the end, you will be better off for following their advice!"Whoever wrote these lines must have either been a financial planner or someone who relied heavily on planners for finance management. We all know that planning our finances is vital.
The Difference Between Investing and Trading
Investing and Trading are not the same thing. The returns you seek, the length of time it takes to achieve those returns, the amount of risk one is prepared to take, and the commitment one can make to monitor the investments dictate the strategy of whether to invest or trade.
By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios.
Boost Your Income With Financial Spread Betting
About 6 years ago I started to notice that certain friends of mine had quit their jobs but continued to live very luxurious lifestyles - seemingly without doing very much. I thought they must just be using up their savings until I discovered they were all making a fantastic living by spending just a few hours a week doing something I had never heard of before - "financial spread betting".
The Three Legged Stool
My paternal grandparents were born near Lake Como, Italy. My grandfather learned how to farm, and he did just that until he died chopping wood at age 88.
How to Buy to Let
Find out everything you need to know about buy to let. Learn what to buy, where to buy and what not to buy.
Investing and Understanding What You Buy
"There is nothing more frightful than ignorance in action!"Johann Wolfgang von Goethe (1749 - 1832)I don't really know how cars actually work. Not really! I know how to drive them, but if you asked me how they work, I would not really know how to definitely explain it.
An Introduction to Offshore Investing
Once upon a time, offshore investment strategies were spoken of in hushed tones. They were conversations restricted to the plush offices of private Swiss bankers, or a dinner table topic in the expensive playgrounds of the multi-millionaires.
Now is the Time to Invest for Your Retirement!
Yes, it's the time we've all been waiting for?tax season! We know you've gotten a jump start and filed early this year, right? Of course not, but rather than dreading this part of the year, we should all look to it as a point for new opportunities. Many readers don't realize that even though the New Year has come, they can invest money as if it were still 2004! That's correct, it's not too late.
Day Traders and Swing Traders and Options? Maybe!
Typical day traders and swing traders look for stocks with quick,short term movements, and are not in the business of holdingpositions overnight let alone a week or two. So the use ofoptions has not usually been a component of their tradingstrategies.
Super Rules, OK?
Do you rule your superannuation or does it rule you?It's easy to fall for some myths about your super unless you do some clear thinking about who is in charge. Virtually all Australian employees now have a superannuation account, many have several, even more than they know about.
Investing Pointers for Neophyte Investors
If you know next to nothing, how do you go about the business of investing? The first thing you need to know about investing is, how much do you really know? If its' not much, then you will need to read extensively to educate yourself.To become well-informed, you should read up on the basics.
|home | site map ||