Gurgle Gurgle

Caught in a whirlpool and being sucked under. No life vest or other device to save you. Gurgle, gurgle. Down you go.

This last couple of weeks in the stock market kinda feels like that whirlpool when you look at your financial statements. Of course, your broker will tell you this is a "normal correction and it gives you a chance to buy more so you can dollar cost average. He could be right about this being a correction, but dollar cost averaging down is 100% wrong. The proper way to average into a financial holding is buy more as it goes up in value, never down.

There is a basic law of physics that applies equally well to many things including the stock market. An object in motion will remain in motion in the same direction until interrupted by another force.

Keeping that in mind before you buy any stock or mutual fund is very important. Just because something looks cheap does not mean it will increase in value because you bought it. Usually there is a compelling story to go with it, but that doesn't mean anything.

How can you know if what you are going to purchase has a chance of going up so you can profit from it? Let's go back to the basic law of physics. Is it going up now? Many professional traders will want to see an equity that has been moving steadily higher for at least 3 or 4 months and rising at the rate of at least 3% per month. They also don't like sky rockets that are going almost vertically as these are too dangerous and many times will fall as fast as they climbed.

You must also protect your capital at all times. Anyone who purchases stock or mutual funds without an exit strategy is doomed to lose his money over time. How? Very simple. You may very easily put a stop-loss order in place that will not allow you to lose more than 10% of your investment. Brokers discourage these as they have to watch them - and you should too. Your stops orders should be placed immediately after your purchase and before you hang up the phone. At the end of each month if your equity has gone up you should move up your open stop loss to lock in any profit that is accumulating.

If you will go back to study the price action of stocks and funds you will see that once an equity starts in a certain direction - either up or down - that course will be maintained for many months and sometimes years.

People hate to lose money, but one of the important rules is never to lose a lot of money. Small losses will not kill you, but big losses can make that gurgle, gurgle sound.

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:

India's top broker shifts focus to mid, small cap funds as prices decline  LivemintDomestic investors in mid-and small-cap stocks pumped ₹27 billion into the nation's equities last month.HDFC Securities has joined a growing chorus to invest ...
Here's a look at the mutual fund favourites in May  MoneycontrolThe second month of FY19-20 saw a notable change in the sector and stock allocation from the top 20 mutual fund houses. On a month-on-month basis, MFs ...
Sensex's rise from 20K to 40K: 5 lessons for equity mutual fund investors  Economic TimesWe look at some critical lessons that equity fund investors learnt during the journey of Sensex reaching 40K.
Here are top 10 large, mid & small-cap stocks that MFs bought and sold in May  MoneycontrolAmong largecaps, Vodafone Idea, DLF, Bharti Airtel, HDFC Life Insurance and Piramal Enterprises witnessed highest buying during May 2019.
Fall in HDFC MF stock could be opportunity to buy: Analysts  Economic TimesHDFC Asset Management shares plunged 6.3 per cent on Tuesday — the highest single-day fall in nine months — as investors slammed the mutual fund's ...
ITR filing: Income tax department makes disclosing LTCG from stocks, equity mutual funds simpler  LivemintThe Finance Bill 2018 reintroduced tax on LTCG made from listed shares and equity-oriented mutual fund.You only need to disclose the total LTCG from ...
What India's top three mutual funds bought and sold in May  LivemintInflows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Invest in a thematic mutual fund only if you’re convinced about the sector’s growth  LivemintOverall, about 55% of your portfolio is going to a diversified set of stocks.Thematic funds investment in a long-term portfolio is not a good option.
Quantum Mutual Fund launches ESG Equity Fund  Economic TimesThe Quantum India ESG Equity Fund (QESG) will invest primarily in stocks of Indian companies.
Here are the mutual fund favourites in April  MoneycontrolMaximum month-on-month change in value was seen in TCS, ICICI Bank and Kotak Mahindra Bank.
Index mutual funds see 60% jump in assets in a year as actively managed funds struggle  Economic TimesIndex mutual funds — a category that aims to mimic returns of benchmarks, like Nifty or Sensex — have seen their assets surge 60% over the past one year as ...
'It's time to take your money out of stocks': India's top insurer to investors  Livemint'It's time to take some money out of equities because valuations are looking stretched,' Gopikrishna Shenoy, SBI Life Insurance.SBI Life expects earnings at ...
Should I invest in Mirae Asset Emerging Bluechip Fund?  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Time to move your large-cap portfolio to passive funds  Moneycontrol.comOf 29 large-cap schemes, only three outperformed their respective benchmark indices.
These three sectors saw highest MF inflows in May  MoneycontrolMutual funds continue to prefer bank shares in May, seeing good growth outlook, profitability and capital ratios, data released by the Securities and Exchange ...
HDFC AMC falls 7% after taking exposure to Essel group debts  MoneycontrolWhile having an overweight call with a price target at Rs 2000, global brokerage Morgan Stanley said liquidity arrangement for Essel should benefit investors ...
Should you invest in mid- and small-cap funds now?  LivemintWith the new government taking office with a massive majority, it has the elbow room to push through the reforms. No wonder markets are expecting the ...
Mid, small caps offer opportunities, but hold stocks for at least a year  Business StandardAs market pundits had predicted, the stock market rally has become broader after the Lok Sabha elections ushered in a stable government. And the positive ...
Consider investing in direct stocks only if you can monitor portfolio proactively  LivemintDirect stocks can be considered if you have the ability to do research to identify the stocks to be bought as well as to be sold.You should be revisiting your ...
ITR Filing: From mutual funds to FDs, here’s how income from your favourite investments is taxed  The Financial ExpressFiling income tax return? Here's a ready reckoner about how returns on investments made in shares, mutual funds, FDs, gold and real estate are taxed.
UTI Mutual Fund fully writes off DHFL exposure  Economic TimesUTI Mutual Fund's exposure to DHFL securities through schemes is highest in the industry.
As crisis deepens, here's what investors should do with NBFC stocks  MoneycontrolThe recent default by DHFL on interest payment to its debenture-holders followed by its rating downgrade by ICRA and CRISIL has raised *fresh* concerns on ...
A look at mistakes committed by investors of equity mutual fund schemes  Moneycontrol.comBalwant Jain. The interest of investors has been shifting from direct equity investing to equity mutual funds over a few years. Though this is a welcome trend, ...
Should I add more schemes to my mutual fund portfolio?  Economic TimesI have recently started investing in mutual funds. I have invested in four schemes in February 2019. I just wanted to run them by you to see if I have selected the ...
I am new to investing. Which books should I read to understand stock market and mutual funds?  Economic TimesTo learn about mutual funds, you can read Common Sense On Mutual Funds by John Bogle. Here is a list of books for learning about stocks and mutual funds.
Flows into mutual funds revive in May as Modi win seems to spur risk demand  LivemintFlows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Beware! Exotic funds are a $40 billion time bomb ticking on D-Street  Economic TimesNothing grows this fast in finance without storing up trouble for the future.
Top fund houses wagered on many contra bets this May  Economic TimesTop domestic fund houses took note of the political stability post-election results and lapped up shares in many perceptibly contrarian bets in May, hoping for a ...
Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
Impact of SEBI’s crackdown on mutual fund fees—A case study  Moneycontrol.comShreesh Biradar. For Indians, the best way to earn returns on savings was either investing in real estate or buying gold. The millennials are changing trends in ...
Stocks to buy: 12 companies loved by both hedge funds, mutual funds  Business InsiderThis story requires our BI Prime membership. To read the full article, simply click here to claim your deal and get access to all exclusive Business Insider PRIME ...
How concentrated is your mutual fund scheme?  LivemintMost mutual fund schemes diversify across stocks and sectors. But sometimes managers follow a concentrated strategy either due to a scheme's mandate or ...
Modi government's 2nd term: Where to invest in stock market now?  Economic TimesThe return of Narendra Modi as Prime Minister has pumped adrenaline into the stock market. As it became clear on Thursday that the BJP will get a clear ...
Closing bell: Indices snap 4-day losing streak, Sensex gains 85 pts; banks, IT stocks lead  Moneycontrol.comThe sectoral trend was mixed with Private Banks and IT gaining. The broader markets underperformed frontliners.
Will these mutual funds help me to create Rs 8 crore?  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
10 NBFC stocks that have fared well despite crisis in the sector  Economic TimesNot all NBFC stocks fared poorly. Here are 10 stocks that have given extraordinary returns in the past year.
Modi 2.0: Here are top stocks picks from four brokerages  LivemintNew Delhi: Lok Sabha election was one of the most awaited events for this year. After one and half months of voting across the country, results are finally out and ...
Should you invest in the DSP Quant Fund NFO?  LivemintDSP Quant Fund to select stocks based on pre-determined rules to eliminate bias.The NFO of DSP Quant Fund will remain open till 3 June.
Is Vanguard Institutional Total Stock Market Plus (VITPX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceIf you've been stuck searching for Large Cap Blend funds, consider Vanguard Institutional Total Stock Market Plus (VITPX) as a possibility. VITPX carries a Zacks ...
Modi 2.0 portfolio: Here's how to allocate Rs 10 lakh for next five years  Moneycontrol.comThe landmark victory not only suggests continuity of reforms but also brings an end to political uncertainty, suggest experts. The climate is just about right for ...
'Nifty shouldn't go below 11,000 anytime soon; avoid debt funds for now'  MoneycontrolEven from an FII point of view, the incremental flows may find favour in India than in China. So the potential for a much larger FII allocation definitely exists, said ...
D-Street’s mandate not clear yet, best to stagger your bets: Experts  Economic TimesRajesh Cheruvu, WGC Wealth, expects Sensex and Nifty to correct up to 5 per cent immediately.
Under Modi 2.0, a new beginning likely for stocks, mutual funds and bond market  Zee BusinessModi 2.0 has raised hopes that the issues faced by the economy will be tackled in a firm and prudent way. Get more India News and Business News on Zee ...
The next bear market could be unusually severe for stock investors  MarketWatchIt's not the price you sell at that matters most; it's the price you paid.
Home  CogencisFriday, Jun 14. By Rajesh Gajra. NEW DELHI – India's top 10 mutual funds by asset size resorted to intensified selling in May as the number of stocks they exited ...
Top 20 under-owned stocks by FIIs and MFs as of Q4: do you own any?  Moneycontrol.comExperts are of the view that investors should not worry too much on under-ownership of stocks by FIIs as many times it offers potential opportunity for them to top ...
Stock Market Investment: 7 investment lessons from the Game of Thrones  The Financial ExpressIn their quest for the Iron Throne, The Game of Thrones characters taught us a thing or two about investments. Here are 7 insights to help you in your investment ...
Anil Ambani, world’s sixth richest in 2008, falls out of billionaire club  Economic TimesTotal m-cap of six Anil Dhirubhai Ambani Group firms has dropped to Rs 6196 crore.
Beaten-down midcaps could be on their way out of the woods  Economic TimesBattered mid-cap stocks may attract investors once again now that their valuations are lower and amid expectations of more flows into domestic mutual funds if ...
How to play likely Modi victory? Analysts say midcaps may shine  LivemintMumbai: A battered corner of India's $2.1 trillion stock market -- mid-cap shares -- may be ready to shine after exit polls in India signaled a second term for Prime ...
Sensex stocks vs Sensex index mutual fund: 5 things to know  Times NowStock market investing has garnered numerous eyeballs over the years due to the lucrative returns, high liquidity, relatively lower tax rates on long-term capital ...
Look at These 3 Northern Mutual Funds  NasdaqFounded in 1889, Northern Trusts manages assets worth over $956 billion (as of Mar 31, 2019) based on assets raised in the country. The company.
'Smallcaps will outperform mid & largecaps; invest in these 3 value stocks'  MoneycontrolEarnings should be better in the second half of FY20, but the critical factor will be the earnings trajectory of the banking sector in FY20.
Putting your mutual fund return in perspective  Dalal Street Investment JournalThe first question that comes to the mind of an investor while investing in any asset is the return it gives. So if you are investing in a mutual fund then you would ...
A $13 billion fund makes contrarian bet on India consumer stocks  LivemintMumbai: Flagging Indian sales of products like toothpaste and hair oil have been a drag on the share prices of the nation's consumer goods makers, but each ...
Super six: These stocks have outperformed Sensex every month in 2019  MoneycontrolThere are only 13 BSE500 stocks that have delivered positive returns every month in 2019.
S&P 500 Shake-up Will Leave Apple, Tech, With Smaller Roles  Barron'sApple —and tech stocks in general—are about to become less important to the S&P 500. Next week, S&P Dow Jones Indices will readjust the representation of ...
5 Top-of-the-Line T. Rowe Price Mutual Funds  Kiplinger's Personal FinanceT. Rowe Price mutual funds are a rarity in that they have found success across a wide range of strategies. Here are five of their best offerings.
Markets may extend gains on US-Mexico reprieve  LivemintIndian equities are expected to extend gains on Tuesday as global markets are supportive. Asian stocks made modest gains on Tuesday after the US shelved ...
Finance Ministry to launch ETF with bank stocks, fin institutions this fiscal  LivemintNew Delhi: The finance ministry is planning to launch an exchange traded fund (ETF) consisting of stocks of PSU banks and financial institutions this fiscal and ...
How a marijuana-software company became the first of its kind to list its stock on Nasdaq  MarketWatchTo accomplish the feat of becoming the first cannabis-software stock to list on the Nasdaq, MJ Freeway Chief Executive Jessica Billingsley employed a strategy ...
The rise of machines  Morningstar IndiaThe first consumer-facing robo-advisers, Wealthfront and Betterment, began operations in 2008, yet neither company offered financial advice to retail investors ...
ADAG stocks erase intra-day gain; RCom, RInfra down over 3%  Business StandardShares of Anil Dhirubhai Ambani Group (ADAG) companies erased their entire intra-day gain and were trading lower by up to 5 per cent on the BSE despite the ...
As market prepares for Modi 2.0, here are 13 stocks to invest in for five years  Moneycontrol.comEarly trends put NDA in a comfortable position to form the government that has, to an extent, already been factored by the market after exit polls.
Consumer and bank stocks still the only stories to play: Pramod Gubbi, Marcellus  Economic TimesFor those who are looking to buy into growth stories, it is best to hold off from looking into DHFL or Yes Bank. It is a very sophisticated segment of the investor ...
Is your mutual fund holding too much cash?  LivemintEvery mutual fund scheme comes with a mandate to invest in certain type of securities, but it is allowed to have a small part of its portfolio in cash to meet ...
Updates to Clean Energy Mutual Fund and ETF Lists  Alternative Energy StocksThanks an email from a diligent reader, I have just updated our lists of Clean and Alternative Energy Mutual Funds and Clean and Alternative ETFs and Other ...
Yes Bank likely to exit asset management business  Economic TimesMumbai: Yes Bank, which is currently redrawing its strategic roadmap under new chief executive Ravneet Gill, is likely to exit the asset management business as ...
Closing Bell: Nifty holds 11,700, Sensex falls 382 points; Tata Motors loses 7%  Moneycontrol.comMarket Close: Indian indices fell 1 percent as they failed to maintain the strong up move which was recorded on May 20, on the back on exit polls for Lok Sabha ...
MF SIP tips! These 5 mutual funds are best picks - Here`s how to get rich with these schemes  Zee BusinessThe mutual fund industry has continued to witness robust SIP inflows. Get more Personal Finance News and Business News on Zee Business.
PM Modi announces his diversified portfolio; here’s how you can create yours on D-Street  Economic TimesA diversified investment portfolio can protect your wealth during volatile times on D-Street.
Reliance Capital to exit MF biz, use funds to cut debt  Economic TimesMumbai: Reliance Capital, the financial services business of the Anil Dhirubhai Ambani group (ADAG), has decided to exit mutual funds by selling its entire ...
PPFAS mutual fund gets ready to launch 2nd equity fund in 6 years  Moneycontrol.comSix years after launching its first and only equity mutual fund (MF) scheme so far, PPFAS Asset Management is ready to launch its second equity fund, Parag ...
7 Smart Mutual Funds for Income Investing | Dividends  U.S. News & World ReportThese funds offer management and strategy rather than following a specific index.
For new investors, starting SIP in Nifty50 and Nifty Next 50 is ideal: HDFC Securities  Moneycontrol.comFor *fresh* investors, starting with SIP in Nifty 50 and Nifty Next 50 is ideal. On the way, they have to learn about evaluating stocks and their valuations, Deepak ...
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Should you invest in international mutual funds?  LivemintIf you were to sort all equity mutual funds available for retail investment by their one-year performance, international funds would come on top. The best ...
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
Stocks vs Mutual Funds: Which is a Better Option to Invest?  EntrepreneurStocks and Mutual Funds have their own set of hiccups, which are better to know before making your investments.
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
Investment limits Sebi prescribes for mutual funds  LivemintDid you know that there are guard rails that the Securities and Exchange Board of India (Sebi) has put in place to protect you from the risks of over-exposure to a ...
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
Here are a few mutual funds that stocked up on YES Bank in Q4FY19  Business StandardShares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 ...
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comTop 30 stocks which witnessed strong buying according to change in value include names like NTPC, ICICI Prudential, L&T, SBI Life, SBI, Jubilant Food, Maruti, ...
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.

Smart Day Trading Strategies to Help You Make Money in the Stock Market

Stock trading can be a very profitable activity. You can... Read More

Bull or Bear?

Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Investment Research - The Dalbar Study

Very few people, even professionals, have heard of the Dalbar... Read More

Market Timing

Every broker and financial planner will tell you that you... Read More

Will the Stock Market be Lower in October?

The stock market often closes a week in the middle... Read More

What Can Model Airplanes Teach You About Trading?

I was devastated!I just couldn't believe it. I was 10... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Market Experience of a Naïve Stock Operator

Sometime in the third quarter of 1997, someone told me... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Investment Attorneys and Garbage Stocks

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

Lifestyle Funds Provide Greater Security?

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

Advisory News Letters

Several times each month I am solicited by various market... Read More

Successful Trading ? Establish Your Risk Level

Before you embark upon a journey of trading stocks or... Read More

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... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... Read More

Low Tide

When you stand on the ocean shore and watch the... Read More

Discover the Biggest Trading & Investing Online Mistake

Any online investor / trader seeks an excellent off or... Read More

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

Mr. Market

I constantly hear the talking heads on CNBC-TV, the radio... Read More

What is the Most Important Indicator of All?

Most stock market traders have a favorite technical indicator.The one... Read More

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

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

Low Expense Ratio

One of the big advertising kicks today from mutual funds... Read More