Advisory Service for You?

It depends on your level of understanding of the market and the amount of money you have.

If you a sophisticated investor with a substantial amount invested you are probably already receiving more than one. If you have very little market savvy it will be difficult to choose one that fits the size of your portfolio. If you are just getting started my advice is don't buy one - yet.

Most of the advice is Wall Street goobledegook and most of the remainder is stuff you can't use anyway. Even the simplest letters have too much information and require more time than most working people have to act upon their recommendations.

There are literally hundreds of stock and mutual fund letters from which to choose. The first thing you want to know is what has been the track record - how much annual return has the advisor received for his readers over the past few years. Some will quote you wonderful figures, but these may be predicated on following all of his advice all the time. If that is the case you had better first ask how much money is required to buy at least 100 shares of everything he recommends when he recommends it. Don't let him weasel out of it - make him give you an answer or don't buy it. That amount may be more than you have so you must then pick and choose between his recommendations and you might not pick all the good ones, just all the bad ones.

There is one type of letter I consider essential to everyone. It times the market. By that I mean they tell you when the general market is going up and when to sell out because it is going down. Almost every broker will tell you it can't be done. He tells you that because he doesn't know how to do it and won't take the time to find out. He is a professional loser and doesn't deserve to be your broker.

The market timing service I have been using since 1986 is Fabian's Investment Resource out of California. They have a 20-year real time track record.

In the last 100 years we have had 30 bear markets which are defined as the overall market going down more than 20 percent and some more than 40 percent. Even the best stocks and mutual funds will go down in a bear market because they act like ships - when the tide goes out all ships go down with it. You don't want to have any market positions at that time.

The first basic advisory service should be for market timing. Check their claims and actual track record. Then as you learn more you may expand your horizon to picking individual issues or mutual funds.

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

In The News:

What is a mutual fund?  Economic Times
Mutual Fund update: AMCs not banking on bank stocks  Dalal Street Investment Journal

DIY Portfolio Management

Exchange Traded Funds (ETFs) are growing. Investors are choosing low... Read More

The Top 10 Reasons to Invest in Mutual Funds

Everyone who follows the financial news has heard of mutual... Read More

Stock Trading Diversification

This is the continuing story of our two imaginary traders,... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

The 401(K): How The Insider Has Stolen Your Retirement!

Mutual funds were moderately successful in creating a presence in... Read More

On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?

Success in small cap & micro cap stock trading like... Read More

The Information Age

It is wonderful to be alive in the information age.... Read More

Stock Chart Reading

As an investor you will want to check out any... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

The thinking process of the brain relating to the... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

Inertia

One of the basic laws of physics is that a... Read More

Lifestyle Funds Provide Greater Security?

With the stock market stubbornly refusing to settle down and... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

The 10 Commandments

Wall Street has been preaching for years and years to... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

Humpty Dumpty the Stock Market Falls Down

Humpty Dumpty had a great fall and all the King's... Read More

Wall Street Paradigm

In 1960 an engineer working for a watch company in... Read More

Market Success

Who are the successful investors?There are those who follow the... Read More

Mindset

In 1960 an engineer working for a watch company in... Read More

This Market Is Different

All of the talking heads have been telling us that... Read More

No Load Mutual Funds: Boost Your Portfolios Returns

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