| |
| |
|
|
Stocks and Mutual Funds |
|
Stock Insurance
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? Maybe you have a safe at home for your valuables such as jewelry, rare coins, special documents and even stock certificates. Wait a minute. Is that stock certificate protected just because it is surrounded with 3 inches of steel? Not really. The problem is that its value does fluctuate every day. It is OK so long as it is increasing because that is why you bought it. The broker told you to put it away and forget about it. I hate to tell you this, but in the last 3 years that stock you own whether in your safe deposit box or in your account at the brokerage house might be worth a lot less. Wouldn't it be nice if there were some way you could protect that investment from a big loss? You can, but you will have to pay a premium, but you can set the amount of the premium yourself. Some stocks you don't have to worry about. Isn't that true? You know, it's good ole AT&T. Mom bought that years ago and gave it to me when it was $55 per share. She said not to worry as it will go up and be there for retirement. Huh? You just looked and it is $14.00. Can't be, but it is. Now don't you wish you had bought some of that stock investment insurance? I bet your broker didn't tell you about it. They never do because you might end up with cash and take it out of your account and he wouldn't be able to make some nice commissions. Most folks never heard of stock insurance. It has been there for years and years. Here is how it works. Call you your broker and tell him to enter an order for this stock with a loss protection and you are willing to pay a premium of 10% (you can set the percentage amount for more or less) and you want it to stay there until you cancel it. No, you don't have to send him a check. He might be a little puzzled at first until he realizes you are talking about on Open Stop Loss Order. He can enter that for you. If you had put that in place when AT&T was selling at $55 you would have sold out at $49.50 and today you would be about $3,500 richer for each 100 shares. (P.S. Brokers don't like to do this and will try to talk you out of it.) You can do this with any listed stock to protect from loss of your investments. When you consider that the overall market is down about 40% in the last 3 years that 10% premium looks darn good. A stop-loss order should never be lowered and should always be raised to follow a stock price up as it increases. It is not too late to do it. Call your broker today. (c) 2005 Al Thomas' best selling 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 to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Hedge Funds: the Good, the Bad, and the Ugly Alfred Winslow Jones started hedge funds in 1949. He was a pioneer of non-traditional investment strategies. Finding A Good Stock One of the things people are always asking me is how can I find a good stock. The answer I give does not please them. Why Buy and Hold? Since I can remember, and that's a long time ago, the Wall Street brokerage companies, mavens and mutual fund managers have been exhorting the mantra of Buy and Hold for all your investments. There have been erudite studies published that this is the only way to go. Laws and Efficiencies and Theories of Diminishing Returns The basis of diminishing return discussions surround such simple notions; that when you have a very fast aircraft, you also have coefficients of drag issues. When you are building a quarter mile car and want to go faster you must realize that for every tenth of a second you need to lose 100 lbs. Diversification Wall Street's watchword has always been diversification, but what does it mean and why do they say it?The standard Wall Street definition is flexible because each broker or financial planner will vary the portfolio based on your age and income. They say that the younger you are the more risk you should take and the older you are the less risk. Bollinger Bands Strategies The Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower "bands" that are 2 standard deviations away. Trading Stocks -Never Forget About A Past Trade We all know that emotions control every decision that an investor makes in any type of money related vehicle. Whether is be the stock market, real estate, art work or antiques, emotions ultimately set the final price on both sides of the transaction. Investing in the Stock Market - When To! Is really not as important as to how you invest in the stock market. And how you invest in the stock market should take into consideration what goals you are setting for that stock market investment. Bottoms Ups 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. Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others When it comes to stock market trading it PAYS to have more knowledge than the rest of the pack. Pure gold can be harvested in each profitable trade that you accomplish. What To Buy Now I am sure that if you have a brokerage account with a "full service" broker you have been getting calls about what to buy and sell. If you have big losses in certain stocks you might be hit with that great Wall Street lie to buy more so you can 'Dollar Cost Average'. Investment Attorneys and Garbage Stocks How is it possible that trash Companies are posting less than expected results? Trash Companies are thought of by prudish investors as some of the safest stocks to own. Ask Warren in his Buffet of Essays on Corporate America. Understanding the Bulls and the Bears If you've ever flipped on the television to CNN Financial or paged through the finance section of your local newspaper, you may have seen or heard references made to "the bulls and the bears." If you didn't know what was meant by those terms, you're about to find out. Rebalance And Diversify The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio. Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading? Ever notice how behavior in one area of life can apply to behavior in other areas of life? For example, I've noticed a number of things while driving that apply to online trading. One of them is regarding how people behave toward traffic signals. Its A Bull, Its A Bear, Its Suptertrader! The higher the market goes the more confusing are the "experts". In the September 14 issue of Investor's Business Daily newspaper we find the great prognosticators such as:Sheldon Jacobs, editor of No-Load Fund Investor newsletter quoted that he is recommending having more cash in your portfolio. How Much Money Can I Make With Trading? What Account Size Do I Need To Start? What account size do I need?How much money can I make with trading?First of all, let's clarify a common misunderstanding: You never risk your full account size. You always have a "catastrophic stop", and it is important to define the "ruin" before you start trading. Stock Chart Reading As an investor you will want to check out any equity before you buy it. Many investors go to Morningstar which is one of the largest providers of mutual fund information in the world. Basics of Stock Market Financial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market. Some Good News for A Change Before we get into all the good news out there, let us first take a look at what the term "news" really means. By definition, the term "news" means the exception to the norm.
|
||||||||||||||