Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Pamplona, the Wild Investment Bulls > NetSparsh - Viral Content you Love & Share

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the running of the wild bulls in Pamplona, Spain. Some of the nuttier people get out their capes and stand in their path as they come roaring down the street.

Our would-be matadors wave their home made cloaks at the bulls hoping the bulls will charge at it and not at them. The list of casualties at the end of the day is sometimes quite large, but, fortunately, not too many are killed.

These two participants, the bull and the make-believe matador remind me of the those same participants in the stock market. The bull is Mr. Market and the matador is the make-believe investor.

Why do I call him a "make-believe investor". Because as a former 17-year exchange member, floor trader and brokerage company owner I have had many clients who thought they were "investors". As a professional I would watch many of the dumb things (like standing in front of a charging bull with a rag in their hand) that clients would do with their money. Many times I could talk them out of it, but others they would insist on being gored.

The professional trader learns very quickly that you cannot stand in front of a charging bull who happens to have the shape of a stock market that is going full speed either up or down. Investors love those upward moves, but a few will say I have a nice profit now so I'll cash in and take the money only to see their stock, mutual fund or ETF (Exchange Traded Fund) continue its skyward journey.

The problem was they were guessing that their price was at or near the top of the move. Is there any way to know what is the highest price? Actually 'NO', but there is a way to catch a very large percentage of the price advance and have Mr. Market tell you when to sell. How? Let me show you the time-honored secret of the long-term professional traders.

Stocks do not make an orderly procession to a top and then turn down in an orderly fashion. They move in stair steps up sometime 2 steps up and one step back or 3 steps up and one step back. Many times they will rest for long periods and consolidate. What you can do is place a stop loss order that should be moved up as your equity advances.

Suppose you bought AT&T at $50 several years ago and had followed it up with a 10% or 15% stop loss order. It went over $100 and then started down to below $15. If you had been following with your stop you would have sold out about $85 or $95. The charging bull when it changed direction would not have gored you.

There is nothing to fear as long as you are protecting your investment with stop loss orders. The bull is your friend as long as you have protection when his direction changes.

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 and discover why he's the man that Wall Street does not want you to know. Copyright 2005.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

Index Funds Are Great, But Don't Ignore Stock-Picking | Money
Money Magazine
Index funds are for retirement. But I still crave the thrill of the hunt when it comes to investing. That means stock-picking.

and more »

Economic Times

Top 20 stocks that mutual funds bought in October; do you own any?
Economic Times
According to the Association of Mutual Funds in India (Amfi) data, equity funds received an inflow of Rs 2.86 lakh crore from November 2016 to October 2017. Prior to that, these funds had registered flows of Rs 1.5 lakh crore between October 2016 and ...

and more »

3 Best Non-US Mutual Funds for Marvelous Returns
American Funds EuroPacific Growth Fund F-2 (AEPFX - Free Report) seeks appreciation of capital for the long run. AEPFX invests the lion's share of its assets in common stocks with growth potential issued by companies based in Europe and the Pacific ...

PotNetwork (press release)

Cannabis Stock Report: Aurora Goes Hostile, Maricann Goes Gold, Mutual Funds Go Empty
PotNetwork (press release)
CanniMed Therapeutics Inc. (TSX:CMED) rejected a merger offer from Aurora Cannabis Inc. (TSX:ACB) The move set in motion a planned hostile takeover of the Canadian cannabis company. It follows CanniMed's announcement of the acquisition of ...

and more »

The Motley Fool: Stocks versus mutual funds
(If you invest in mutual funds, favor those with low fees and talented managers, or just stick with low-fee index funds such as one that tracks the S&P 500.) Carefully selected individual stocks, meanwhile, can deliver bigger returns than most mutual ...


Senate plan lets mutual funds skip a tax change that hurts individual ...
The Senate has decided a provision preventing individual investors from minimizing taxes will not apply to mutual funds.

and more »


Jack Bogle's 5 bold investment predictions for 2018 and beyond
If you are looking for easy answers or reassuring platitudes, do not check in with Jack Bogle, the 88-year-old founder and retired CEO of the world's largest mutual fund company, Vanguard, which manages $4.5 trillion in assets. "I seek the truth," he ...

and more »

The 10 Best Mutual Funds to Buy for 2018
A solid portfolio of mutual funds begins with a core holding, and the best fund to do the job in 2018 is the Vanguard 500 Index Fund (MUTF:VFINX). Although its close relative, Vanguard Total Stock Market Index (MUTF:VTSMX), is the largest stock mutual ...

and more »


Senate tax bill ends this stock sale strategy
A controversial proposal in the Senate tax bill could put individual investors on the hook for a bigger tax bill when selling investments. The proposed change, which originally would have hit both individual investors and mutual funds, sparked a ...

and more »

Can Mutual Funds Own Stocks Under $5?
Motley Fool
It's often said that mutual funds and other institutional investors can't own stocks that trade for less than $5, condemning low-priced stocks to retail ownership only. But the truth is actually the opposite -- there are some roadblocks for investing ...

and more »
Google News

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Take The Time

You must take the time once a month to review... Read More

The Stock Market is a Roller Coaster: Prepare for the Ups and Downs

IT'S REMINISCENT OF THE OLD children's tale about an old... Read More

No Load Mutual Funds: Boost Your Portfolios Returns

Investors who exclusively use broadly diversified, no load mutual funds... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More


The spring-loaded rat catcher is the ultimate low-tech device invented... Read More

Option Spread Trading

Spread trading is a technique that can be used to... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

My Stock - Right or Wrong

We all know the expression, "My country, right or wrong",... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could... Read More

Discover the Retirement Breakthrough the Federal Government Created for You - The Roth IRA!

If you don't know what a Roth IRA is then... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

Political Investing

We have two candidates for president that have really different... Read More

Is The Bear In The Cage?

For the last few weeks we have seen the stock... Read More

Trading vs Investing

I often hear from people, "I don't trade. I invest.... Read More

How We Eluded The Bear Of 2000

The date October 13, 2000 will forever be embedded in... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

The Club

Yesterday I received my monthly issue of MONEY magazine. This... Read More