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:

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 markets. As it became clear on Thursday that the BJP will get a clear ...
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.
Over diversification in investing tends to reduce returns: Here's why  Economic TimesToo many investments, whether in stocks or mutual funds, shows the investor is not thinking hard enough.
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 ...
Is ethical investing good for your portfolio?  Economic TimesEthical investing entails making investments driven by an investors core values— moral, environmental, social or even religious. Find out if this is good for your ...
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 ...
Family finance: Why Vermas should stagger their financial goals and secure risks  Economic TimesSince buying a house is a priority for Pune-based Vermas, they should push back other goals for now.
FinMin to launch ETF with bank stocks, financial institutions this fiscal  Economic TimesNEW DELHI: The Finance Ministry is planning to launch an exchange traded fund (ETF) consisting of stocks of PSU banks and financial institutions this fiscal ...
Large cap index mutual funds continue to outshine actively-managed large cap schemes  Economic TimesLarge cap index funds are outperforming the actively-managed large cap mutual fund schemes in the past one-year period. Kotak NV 20 ETF is topping the ...
Stock markets @ record high: 3 tips for mutual fund investors  Times NowNew Delhi: Stock markets grab all eyeballs when the headline equity indices hit record highs or near the previous all-time high levels. From traders to long-term ...
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 do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
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 ...
Investing in mutual funds? Size of fund doesn't matter  Economic TimesA bigger MF is not always a better fund. If you come across a well-performing small fund, invest in it.
Hot and Cold Stocks of Mutual Funds in April 2019  MoneylifeIn April 2019, Larsen & Toubro and Hindustan Petroleum Corporation(HPCL) were the most preferred stocks of Indian mutual funds.
Primer | How the Ikea effect affects your return on investment  Moneycontrol.comAnanya Roy. It was only a few months back that Ikea opened its first store in India. Flaunting one of the biggest stores globally and a 1000-seater eatery – the ...
Midcap index ready to take off for 21,879 in medium term; Buy these 3 stocks for 10-21% return  Moneycontrol.comUpmove is likely to continue as FIIs seem to be upbeat on the Indian economy and major inflow is expected from them in coming days.
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 ...
Vetri Subramaniam, UTI Mutual Fund, talks about which stock segments he favours now  Economic TimesIndia's growth trajectory has been consistent over the past two decades and many firms have performed well across cycles, Vetri Subramaniam, Group President ...
What political leaders invest in: Mutual funds, Reliance shares and even Kingfisher Airlines  Economic TimesShares of Mukesh Ambani- led Relaince can be found in the portfolios of several leaders.
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.
Retail Investors Should Take Exposure To Midcap Stocks Through Mutual Fund Route: Ankit Jain, Mirae Asset Global Investments  BW BusinessworldIn an interview with BW Businessworld, Ankit Jain, Fund Manager, Mirae Asset Global Investments (India), talks about Consumption led funds, lending rates and ...
How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
What to buy now? Brokerages pitch over 30 stocks to ride Modi 2.0 wave  Moneycontrol.comWith the Modi government back in the saddle, the focus of the market will shift to the growth cycle, with RBI expected to be more accommodative.
Investors Try Stock Picking as Volatility Rises  The Wall Street JournalSharp equity swings have caught the attention of some individual investors who believe the market has reached a point where picking the right stocks matters ...
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
7 Smart Mutual Funds for Income Investing | Dividends  U.S. News & World ReportThese funds offer management and strategy rather than following a specific index.
Betting on: FIIs, MFs raise stake consistently in 8 companies in last 4 quarters  MoneycontrolThe first and the most important step towards wealth creation is stock selection. Ideally, stocks selected or filtered should be based on your own research ...
More active managers are beating the stock market again thanks to the trade war: Goldman Sachs  MarketWatchActive stock pickers are having one of their best years since the financial crisis, and these money managers can thank rising U.S.-China trade tensions for their ...
What Type of Mutual Fund Schemes Should You Invest in? Know Here  News18Equity funds are mutual funds which invest majorly in equity stocks of listed companies. They are considered to be risky but they tend to give higher returns in the ...
These new retirement tips can improve your saving and spending decisions  MarketWatchBest New Ideas in Retirement series offers solid, straightforward help with your plans.
Mutual Fund Update: Stocks that attracted fund managers in April 2019  Dalal Street Investment JournalIf we look at the March 2019 data, then the energy sector was the one that featured on top of the buying done by the fund managers. However, the story in the ...
Reliance MF writes down debt exposure to 2 other ADAG firms  Economic TimesMUMBAI: Reliance Mutual Fund (RMF) said late on Sunday it was writing down the value of its holdings in Reliance Commercial Finance (RCFL) and Reliance ...
'Hedge your portfolio risk by spreading investments across different asset classes'  Moneycontrol.comBasis the risk appetite, investors also need to come up with a plan B, a hedging strategy to the portfolio to provide cushion during tough volatile times.
Invest in These 4 Thrivent Mutual Funds for Great Returns  Zacks.comBelow we share with you four top-ranked Thrivent mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)
Liquidity Scare: NBFC stocks slide on fears of spillover  Economic TimesAny default or downgrades in NBFC space will have a cascading impact on the entire sector.
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Bech de kya? How to answer this question in stock market  Economic TimesThe phone rang. And I was not surprised. This name always lights up my phone screen when the market hits a new level – high or low. And the question is ...
Forget Warren Buffett: This fund manager has walloped the stock market over the past decade  MarketWatchWhen the “Woodstock of Capitalism” took place a few weeks ago, aka Berkshire Hathaway's BRK.A, -0.37% BRK.B, +0.19% annual meeting, the Warren Buffett ...
People Want to Buy Uber Stock  Bloomberg“Uber IPO Is Oversubscribed by Day Two of Roadshow,” it says here, but I would say that Uber Technologies Inc.'s initial public offering was oversubscribed by ...
How to Find “Pre-IPO” Marijuana Stocks  Investorplace.comYesterday, we began a special two-part series from Matt McCall, editor of Early Stage Investor. In Saturday's essay, Matt discussed how getting in early and ...
What Makes Berkshire Hathaway Shares Better Than an Actively Managed Mutual Fund?  Motley FoolTo start with, the company is a lot more than Warren Buffett's carefully selected stock portfolio.
3 Mining Stocks for Investors Seeking Gold Exposure  ETF TrendsAs the U.S.-China trade spat drags on, so too could the stock market volatility that has accompanied it so far this month.
FOMO? Investors Fear Missing Out As Companies Stay Private For Longer  Seeking AlphaMany companies are staying private for longer before deciding to go public - if they do so at all. But what does that mean for investors? The type of gains many.
Validea's Top Five Consumer Cyclical Stocks Based On David Dreman - 5/26/2019  NasdaqThe following are the top rated Consumer Cyclical stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman .
Best And Worst Q2 2019: Technology ETFs And Mutual Funds  Seeking AlphaThe Technology sector ranks eighth in Q2 2019. Based on an aggregation of ratings of 430 stocks in the Technology sector. TDIV is our top-rated Technology ...
Stock investors switch to fixed-income avenues  The Express TribuneLatest monetary policy has tipped balance in favour of fixed-income investment.
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 ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Stocks post decade-high weekly gains  DAWN.comKARACHI: Investors heaved a sigh of relief as the stock market posted recovery after snapping the seven-successive-week selling spree that had seen the ...
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 ...
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.
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.
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' ...
Your money: After stock market's decade-long run, is it time to reassess investment strategy?  telegraphherald.comRetirement account balances cruised to record levels in the decade since the Great Recession's market bottom, which is great news if you're seventysomething ...
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
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.
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
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 ...
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 ...
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
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 ...
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.
Should I increase investments in mutual funds once I have more money to invest?  Economic TimesI am a 19-year-old student. I want to invest Rs 2,500 per month in mutual funds for 7-8 years. Can I increase the investment amount with time—once I have more ...
These are fertile grounds for long-term stock pickers, says Samir Rachh of Reliance Mutual Fund  Economic TimesSmall cap funds are going through a rough patch after a bull run in 2017. etmutualfunds.com spoke to Samir Rachh, fund manager, Reliance Small Cap Fund, ...
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
New SIP investors feel the pain as equity fund returns disappoint  Economic TimesSip by sip: That's how the average Indian had a taste of equities in the past couple of years. But the steady road to riches, which involved monthly mutual fund ...
5 funds that outperformed the recent surge in Nifty returns  Economic TimesEquity markets have seen a strong rally on the back of strong flows from foreign investors and hopes of the NDA-led coalition coming back to power. The Nifty ...
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Debt mutual funds with Zee exposure send investors into a tizzy  Economic TimesMUMBAI: Worries about the prospects of debt mutual funds holding securities of Subhash Chandra's Essel Group entities have resurfaced after Kotak Mutual ...
Diversify equity portfolio with international funds  Economic TimesAs a part of diversifying your equity portfolio, wealth managers believe investors should diversify geographically using mutual funds. They can do this by ...
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 ...
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Financial planners recommend new fund from Mirae Mutual Fund  Economic TimesConsistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to ...
As equity mutual funds' returns turn negative, debt outperforms  Economic TimesGains of 13% in the Sensex have not benefited equity fund investors, for whom returns in traditional debt funds investing in government bonds may have been ...
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
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 ...
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
Best mutual funds to invest in 2019  Economic TimesOur list of top mutual fund schemes that you may consider to invest in 2019.
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
Top fund houses are busy lapping up PSUs; what’s behind this new-found love  Economic TimesNEW DELHI: India's top three mutual funds, which manage over Rs 9 lakh crore in debt and equity assets, added a number of PSU stocks to their schemes in ...
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.
The road to wealth creation is paved with smart investments  Economic TimesEquity, hands down, is the best asset class to help you create wealth.
Best small cap mutual funds to invest in 2019  Economic TimesHere is the monthly update on our recommended small cap mutual fund schemes. We are happy to inform you that there are no changes in the recommendation ...
These stocks see mutual fund inflows for 8th straight quarter; are they worth a look?  Economic TimesAt least 20 listed stocks on the BSE have been major beneficiaries.
Is it time to invest in mid cap and small cap mutual fund schemes?  Economic TimesMany market pundits believe this is the right time to enter in small cap and mid cap segments.
Sebi issues new format for mutual funds' monthly report  Economic TimesFrom April 2019 onwards, AMCs will have to submit the MCR to Sebi in the new format by the third working day of each month.
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
2019 is the year of SIP, says S Naren of ICICI Prudential Mutual Fund  Economic TimesNSE Nifty 50 price-to-earnings ratio reached the highest level of 29.24 on April 2. Does it mean markets are overvalued? Should new investors enter in the ...

Stealth Bull

If you have been watching the stock market at all... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

Starbucks Stock is Up

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

Rebalance And Diversify

The stock market has not been very kind to your... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Big Buildings Can Mean Big Economic Disaster

AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Different Ways of Buying Stocks

Let's say you are interested in this one company. You... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Stock and Fund Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

Pension Plans

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

Fools Gold

The stock market has been in an up trend for... Read More

9 Deadly Trading Mistakes!

The following are a list of nine things you want... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

Struggling Stocks, Booming Commodities

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

Buying New Issues

Has your broker been calling you recently with the "great... Read More

What Can Model Airplanes Teach You About Trading?

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

Commoditizing the world

Let's discuss commodities; with the latest Enron situation, it is... Read More

Managing Investing and Stock Market Risks

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

Investing in the Stock Market

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

Defining a Long-Term Investment in the Stock Market

For some "long term" would mean holding a stock position... Read More