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
Trapeze Artist - Swinging with the Stock Market > NetSparsh - Viral Content you Love & Share

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall. The result is death or serious injury when they hit the ground.

When you look below them you will see a net. Thank goodness. No one wants to see them get hurt. As expert as they are they take precautions. In almost every profession or athletic event there is some kind of safety net available and this is true in the stock market for all investors. There is never any reason for investments to fall to the point the investor is hurt. Is there a net that breaks that fall and keeps the investor from losing all or part of his money? Yes there is.

It is called a Stop Loss Order. Brokers don't like them and never recommend them because it means he must watch your account and the average broker has too many customers to do that. However, you can instruct him to place an Open Stop Loss Order that means it is automatically in every day protecting your shares from loss. If you are not allowed to place this kind of order you should move your account to another brokerage house. They obviously don't care about protecting your money.

Let me give you an example. Suppose that last year you bought Cisco Systems (CSCO) at $50 per share. The first question to ask yourself is how much am I going to risk in case this stock goes down instead of up? You put up $5,000 and bought 100 shares. How much are you willing to risk? $500. $1,000. More? Well, today it is about $15 so if you did not have a loss protection you would be out $3,500 and that is too much. The Stop Loss Order is your Safety Net! If you don't have one you can be seriously hurt. One of the basic rules is never to lose more than 10%. Look at what you own to see if you would have more money today if you had placed a Stop Loss Order just below the highest closing price for your stocks. I know you would be money ahead.

There are literally thousands of stocks that have lost 80% and 90% of their value. For those poor people (pun intended) who did not have a safety net they are badly hurt and some are just about dead. Sorry, folks, it did not have to happen.

I don't care what you own. Now you should immediately look at everything in your portfolio and decide where you need to place those stops. If you don't put a net in place you could be hurt.

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:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Investorplace.com

7 Low-Risk Mutual Funds to Buy Now
Investorplace.com
At their core, mutual funds should be lower-risk investments. The aim of many mutual funds is to provide broad-based exposure to a particular asset class; stocks, bonds, etc. With that diversity, at least in theory, should come a lower risk profile for ...

and more »

Wall Street Journal

Three Small-Stock Funds Investors Should Consider
Wall Street Journal
If you're thinking of taking the plunge into small-cap stocks, what mutual funds might you consider? Russel Kinnel, director of manager research at investment information firm Morningstar , lists three possibilities: a small-cap value fund, a small-cap ...


These 3 Prudential Mutual Funds for Spectacular Gain
Zacks.com
TSVRX not only invests in U.S. equity securities and REITs but also in common stocks of non-U.S. companies. Prudential QMA Small-Cap Value Retirement has three-year annualized returns of 9.7%. As of May 2018, TSVRX held 302 issues with 1.15% of its ...


Investor's Business Daily

Which Stocks Are The Best Mutual Funds Buying? Here's The List
Investor's Business Daily
Over the last three months, the best mutual funds have been buying shares in medical stocks like Abiomed (ABMD), Boston Scientific (BXS) and UnitedHealth (UNH). They've also continued to go shopping for retailers like Macy's (M), Dollar General (DG ...


Investor's Business Daily

Investing In Growth Stocks Like Veeva Powers This Top Mutual Fund To Outperformance
Investor's Business Daily
Federated Kaufmann Small Cap Fund owes much of its success in investing in growth stocks to great team work. And this top-performing mutual fund's team is bigger than most funds' — big enough to field a baseball team. The $1.5 billion Federated ...


Business Insider

GOLDMAN SACHS: Big-money investors are dominating the market with the help of 10 stocks — here's the list and ...
Business Insider
Ten stocks contributed to more than 100% of the S&P 500's returns in the first half of the year, according to Goldman Sachs. The list is full of growth stocks, to which mutual-fund managers have been well exposed. In an unusual overlap, many growth ...

and more »

Kiplinger's Personal Finance

12 Great Low-Fee Stock Funds
Kiplinger's Personal Finance
That's why Kiplinger prefers mutual funds with solid long-term records – and managers with tenures to match. Also, we prefer funds with below-average volatility for their category, and we keep a close eye on a fund's size because a gargantuan asset ...


Markets Insider

Here's how to get started investing
Markets Insider
That's where funds come in to the mix. Funds pool together money from lots of different investors. There are equity funds (those that buy stocks), fixed-income funds (those that buy bonds), and lots in between. Now, you can either invest in mutual ...


Forbes

What To Consider Before Opening The Brokerage Or Mutual Fund Window In Your 401(k)
Forbes
This “brokerage window” option available in some retirement plans gives participants the ability to invest in mutual funds, exchange-traded funds (ETFs) and in some cases individual stocks and bonds. Who typically uses a self-directed brokerage account ...


Kiplinger's Personal Finance

Bull or Bear Market – Who Cares? With the Right Portfolio, It Shouldn't Matter
Kiplinger's Personal Finance
Make sure your mutual funds aren't all invested in the same stocks. (Overlap is one of the most common problems we find.) And think beyond stocks and bonds: Consider including other options, such as fixed-income securities, real estate, commodities, ...

and more »
Google News

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

Selection Vs Direction

As I have said many times before in this column... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets

A Guide to Using Stop Loss Orders Stop losses are... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Trading For A Living - Part 1

There can't be many traders who haven't at least considered... Read More

Swing Trading Strategies

Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More

Quality Investment Information: Standing Firm In the Face of Opposition

THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More

Stock Trading Diversification

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

Mr. Market

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

How To Be A Winner

Everyone who invests in the stock market wants to be... Read More

Can?t Stand The Heat

It seems that every day I turn on the TV... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

Managing Investing and Stock Market Risks

Reduce your investing and stock market risks by:Setting your sights... Read More

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

Understanding the Bulls and the Bears

If you've ever flipped on the television to CNN Financial... Read More

Oil Stocks As A Long Term Investment

The demand for world oil is increasing while world reserves... Read More

Pension Plans

If you have a pension plan at work you will... Read More

Trading Tips No 2: The Big Lie in the Stock Market

It is commonly reported that the stock market averages about... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

The Great Stock Market Secret

When the stock market is going up and all your... Read More

What Our Investment Advisor Wont Say Off The Bat

Most advisors will tell you they can beat the market.... Read More