| |
| |
|
|
Investing Information |
|
CYA
You all know what CYA stands for. Of course, Cover Your Assets. And everyone does it. You have protection against losing your car in an accident. You have protection against being sued from that car accident. You have locks on the doors to your home to protect against theft and personal injury. Question. Do you have a lock to protect from loss in your retirement portfolio? Bet you didn't even know there is one. You sure aren't going to hear about it from your stock broker or financial planner. If there is such a thing why hasn't he told me? Maybe it is because it is too expensive. No, there is no charge for this type of protection and your brokerage company will do it. It is free. Then why don't brokers and financial planners provide this as part of their service? The simple answer is it is too much work. If you decide to use the service they will then have to watch your account. Oh, did he say he was going to watch your account? Unless your account in seven figures or close to it you do not appear on his radar screen. The average broker has 300 accounts. Could you watch what is going on in each one if you had his job? It is not possible so there must be a way to protect your money. Yes, and it is automatic. When your stocks are going up and you are making money you don't want to give back those profits, do you? Of course not. There is a simple method known to every broker and financial planner, but you must insist it is done - or you will transfer your account to someone who will. Money talks and he will understand that. First you must determine what your risk level is. Are you willing to give back 5, 10, 15% of the price of your stock when it starts down? If you say 10% then each week tell your broker you want an Open Stop Loss Order placed on the closing price of each Friday (or Monday , Tuesday, whatever) as it moves higher and not to reduce that price. This way he does not have to watch all the different stocks you have in your portfolio and you are protected against any big losses. He may not even want to do this and ask you to place those orders which you can easily do on the Internet. Instead of trying to figure out where or when to sell your equity you let the price action of your stock tell you when it is getting weak. There are many ways of placing Stop Loss Orders and you may wish to use another method. Many can be found by using a search on Google by typing in the words "stop loss orders". Your library should have books on the subject. For a person who is working or cannot take the time to follow the market this is the best way to protect your investments. Consider it a lock on your profits. Go back and see how this would have worked if you had done it for the past 5 years. You would be money ahead. CYA - cover your assets. 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. Copyright 2005
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
Rolling your 401k: Contributory IRA vs. Rollover IRA In an ideal world you would start your working career with a great company in your early 20s, steadily climb the corporate ladder, retire at age 65, and draw a sufficient income from your accumulated 401k account to live happily ever after.Unfortunately, that's not how the real world works. Angels, Are They Real? They're real, but few survive. High risk investing is dangerous to your bank balance. Why You Need To Buy and Sell Gold Coins (Part 5) Grading coinsThe condition of a coin is commonly summarized by a grade. Because the value of collectible coins often varies dramatically with grade and overly generous grading is not uncommon, reasonable grading proficiency is an important skill for collectors. College Savings Plans - Are They The Best Choice For My Child? College Savings Plans - are they the best choice for my child?College Savings Plans, also called Section 529 plans, are one of the best ways to save for college because they offer:- Tax advantages- A variety of investment options- Flexible contribution options- Parental control- Little impact on eligibility for need-based financial aidTax advantagesInvestments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes. Getting Started In Investing Are you ready to open your pathway to financial independence?Well you should be. The sooner the better. Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking corporate executive from one of Australia's largest banks, who we'll call 'Phil' here for the purpose of this article. Consolidation Period The economic data reported Fri showed continued above trend growth with disinflation (at the core level, excluding food and energy) in the second quarter. Real output growth has slowed from about 4% in 2003 & 2004 to just over 3 1/2% so far this year, while a core inflation rate fell from 3% last quarter to 2%. Annuity Owner Mistakes Okay, so I can tell you I have sat in front of countless numbers of people who have made mistakes when purchasing and owning annuities. And I have visited people who wish they never got involved in an annuity. Advice for International Investors on How to Safeguard Their Profits What are the risks?Today, investors are increasingly turning to global markets to find opportunities for profit, giving urgency to the issue of protecting returns from foreign exchange risk. While there are many excellent investment opportunities to be found all over the world, volatility in the currency markets can and does affect the profitability of these investments. Short Selling for Investors Shorts. Let's see. Planning Starts with the Basics When developing a plan for your finances, the toughest question often is: "Where do I begin?" Before investing in stocks and bonds or buying life insurance, before implementing any change or making any decisions, you first need to analyze and understand your entire financial picture. Two documents allow you to do just that. 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. Trading Systems A trading system consists of a set of rules for viewing markets and making trades. The advantages of trading systems can be hidden when they become associated with trading platforms involving trade order submission and processing. When Its Too Late to Save for Retirement You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and that's all. Discipline in Investing and Trading Discipline can be simply defined as your ability to follow your investing and trading plan.Discipline is a rather simple concept. Retirement is Never Urgent Until If you're like many people, your retirement savings have not been growing consistently over the years. We're not referring to the wild fluctuations in the stock market, but rather the fluctuations in our short-term needs. Six Principles of Successful Investing 1. Begin investing immediatelyProcrastination is the number one enemy of investing. 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. Annuity Investment - The Whole Truth Do you ever feel like you haven't been told the whole truth? Kind of like something is missing? Well, you are not alone.With many investors awestruck over the last several years by the declining stock markets, many feel like they're out in the cold. An Old Dividend Stock Investment Idea, for a New Generation Death and taxes! The certainties of life! And then, of course, there are the mortgage payments, the utility bills, phone bills, the car payments and thirsty automobiles. Add that to the grocery and clothing bills, and there appears to be more then just death and taxes as certainties of life.
|
|||||||||||||||||
