Never Lose Money

Never lose money in the stock market again. Yeah, I know. Don't buy any stock, but that is not what I meant. There is a clear and easy way to protect your capital ? what you have now and what you might decide to buy in the future. And don't count on your broker to tell you this.

As you are aware we have been in a bear market since the beginning of 2000. That is a long time and if you have held your stocks and mutual funds for all this time you have some pretty terrible losses. Losses you did not have to take if you had a knowledgeable broker or financial planner. Financial planners don't know any more than brokers so you can't count on them to save your money from being flushed along with everyone else. It is a shame that brokers and planners are not taught how to protect your capital.

When a broker is hired he is given 2 manuals to study. One is on SEC (Securities and Exchange) regulations so he will not break any rules so his company will not be fined for misconduct. The other is on how to open new accounts - how to get you to send money. There is no training on how to trade ? buy low and sell high. His training manual consists on how to do "research". Research is knowing all about a company to determine if it is well run and they are making money or have the ability to make money some time in the near future.

You can obtain complete reports of everything you want to know and even more from Morningstar. They will bury you in information. This kind of "research" is worthless. Why? Because if you can find it out then everyone in the world knows it and it is reflected in the current price. The one thing you want to know is if you buy it will it go up.

The average broker has about 300 accounts and unless you have lots of money he will not pay much attention to you. As new brokers get a large number of accounts they give away the small accounts (those with less than $50,000) to the new, less experienced brokers so they can concentrate on the big boys with big bucks.

That is why you, and only you, must learn how to protect your investments. In a bear market the one who loses the least is the winner and the way to do it is with Stop Loss Orders. If you bought a stock or mutual fund you must immediately decide how much you will risk if it should go down instead of up. Usually 10% is a good rule of thumb. If you paid $40 per share you should sell it immediately of it goes down below $36. Don't ask your broker because he has been taught to Buy and Hold and that philosophy will break you. As your stock goes up you must raise your stop (never lower it) so it trails 10% behind the closing price posted very Friday in the newspaper. There are literally hundreds of thousands of people today who wish they had done this during the past 2 years.

If you were one of them it is not too late to start now so your retirement account will be there when you need it.

Al Thomas

Author of "If It Doesn't Go Up, Don't Buy It!"

Never lose money in the stock market again.

http://www.mutualfundmagic.com

In The News:

What India's biggest mutual funds bought and sold in July  LivemintInvestors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 years.
Is it time to stop investing in equity mutual fund schemes?  Economic TimesIt is difficult to predict the market but many pundits feel it clearly needs some firm signal from the govt.
Diversify your portfolio by investing a portion in US-focused mutual funds  MoneycontrolDeveloped markets such as US have delivered significant returns over market cycles.
Top 30 stocks that fund managers bought & sold in July; do you own any?  MoneycontrolMutual funds net bought Rs 14,846.75 crore worth of shares last month. Their inflows into equity funds also improved to Rs 8,113 crore in July, rising nearly 6 ...
Mutual fund investors keep faith in stocks despite market rout  LivemintMumbai: Investors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 ...
Motilal Oswal NFOs may suit investors keen on passive mutual funds  Economic TimesInvestors looking to include low-cost passive mutual fund schemes in their portfolio could consider the new fund offerings (NFOs) of Motilal Oswal Asset ...
Fund managers bet over Rs 8.5K crore on these 6 stocks in July; do you own any?  MoneycontrolFund managers added large-cap private banks, utilities, energy and select FMCG names.
When equity mutual funds offer negative returns, here’s what you do  Economic TimesThe need of the hour is to stay insulated from the panic in the market.
Invest in reliable outperforming mutual funds: Here are 8 of these  Economic TimesThese funds tend to score well on risk-adjusted metrics and hold dependable stocks in their portfolios.
Hot and Cold Stocks of Mutual Funds in July 2019  MoneylifeIn July 2019, IndusInd Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
Essel set to repay MFs Rs 2,600 crore this week  Economic TimesMumbai: Subhash Chandra's Essel Group will repay about Rs 2,600 crore to mutual funds this week out of Rs 4,200 crore it raised by selling 11 per cent in Zee ...
MFs, FIIs bought these 16 stocks consistently in last 1yr; what should you do?  MoneycontrolThe market has tanked since the budget on July 5. Investors have lost about Rs 12 lakh crore in terms of market capitalisation on the BSE since then. The freefall ...
Mutual Fund Update: Stocks that attracted fund managers in July 2019  Dalal Street Investment JournalIf we look at the June 2019 data, we find that the financial sector was the one that was on top of the buying done by the fund managers. Even in the month of July ...
Equity mutual fund managers buy the dip amid a huge downturn in market  Business StandardDomestic money managers lapped up shares of several companies amid a huge downturn in the market last month. Equity mutual funds (MFs) bought shares ...
Is it time to switch to index mutual funds?  Economic TimesBy Rishabh Parakh It is one of the hottest topics debated these days: is it time for mutual fund investors to switch to passively-managed index funds from their ...
How to build a corpus of Rs 5 crore in 25 years?  Economic Times" Balance the risk-reward ratio by opting for a well-diversified bag of equity and debt funds to achieve your target corpus."
Low hanging fruits? Stocks top money managers bought all through jittery July  Economic TimesAsset under management of the mutual fund industry inched higher to Rs 24.53 lakh crore in July despite a harsh selloff in the domestic equity market, data from ...
Market Movers: What changed for D-Street while you were sleeping  Economic TimesNEW DELHI: Talks of stimulus globally and hopes that US Fed may give in to President Donald Trump's rate cut demands are likely to cap any downside for ...
‘Suspect’ transactions detected at Gautam Thapar’s CG Power; stock tanks 20%. YES Bank suffers collateral damage  Economic TimesFraud at CG Power was purportedly carried out by employees for over 2 years.
Value mutual funds have given good returns over long term but can underperform in short term  Economic TimesOver the years, the benefits of value investing have been espoused by several market gurus and fund managers. Discussions around this investing philosophy ...
Sebi mulls slew of reforms; tighter check on rating agencies, reward and hotline for informants  Economic TimesNew Delhi: With an aim to further safeguard investors' interests and to take defaulters to task, capital market regulator Sebi is planning to unveil a slew of reforms ...
Equity mutual funds are offering negative returns. What should investors do?  Economic TimesAll equity mutual fund categories have been offering negative average returns in the last one year. Small cap and mid cap schemes were hit the most, with ...
Mutual fund investors showing great appetite for assuming risk: Dhirendra Kumar  Economic TimesOne would have thought that new investors who came into mutual funds will be running away. But they are getting into riskier category of funds and the scale of ...
Mutual Funds: To stay invested or exit? Check these four points first  The Financial ExpressThe BSE Sensex is trading lower compared to the 1-year-ago and 3-months-ago levels, while it is flat compared to its level 6 months ago. In the past one year, ...
Mutual Fund Trend: Infosys, REC and UPL among most sold stocks by MFs in July  Zee BusinessMutual Fund Report: Domestic equity mutual fund inflows continue to show resilience despite market volatility, with July inflows touching Rs 73 billion – a 9M ...
'Financial sector will drive country’s growth as NBFC issue gets resolved’  LivemintMirae Asset Global Investments's average AUM jumped over seven times in the last 3 years, making it one of the fastest growing fund houses and a favourite ...
MFs play safe, exposure to top 10 Nifty stocks highest in ten years  Economic TimesET Intelligence Group: It's rather lonely at the top. As vast segments of India's equity markets continue to reel under unremitting pain, mutual funds are gravitating ...
Forget stock market! Gold, silver delivering better returns in 2019  Business TodayInvestors who put their hard-earned money in traditional avenues such as gold and fixed deposits (FDs) are in a better position this year as compared to those ...
Peter Lynch’s 5 types of stocks & how to make money in them  Economic TimesLegendary investor Peter Lynch believes investing in the stock market should not be intimidating and it does not really require any advance level of education.
Should I invest in gold or mutual funds?  Economic TimesMy mother wants to invest Rs 30,000 (approximately price of one sovereign of gold) for my three-month-old daughter. Her aim is to buy gold for my daughter's ...
Should you build a diversified portfolio with just passive mutual fund schemes?  Economic TimesExperts say investors should not be lured by the low-cost structure of passive funds alone.
Mid-cap mayhem: Long road to recovery  MoneycontrolMid- and small-cap stocks have gone through a free fall. To make matters worse, large-caps are now in trouble.The large-cap-based BSE Sensex has been ...
India is still a stock picker’s market, but investment horizon should be 5 years  MoneycontrolIndia is still a stock picker's market and there is scope for active management, and for fund managers to deliver alpha over the long term. says Sampath Reddy.
ITI Mutual Fund mulls slew of scheme launches in next few months  MoneycontrolThe fund house which began its operations with the launch of ITI Liquid Fund and ITI Multicap Fund in April 2019 and ITI Long Term Equity Fund in July 2019 is ...
Nearly 100 fund managers sell entire stake in Yes Bank in last 1 yr; what should you do?  MoneycontrolIn the last one year, about 100 mutual fund managers have completely sold their stake in Yes Bank. In June 2018, 227 mutual fund schemes had Yes Bank in ...
Mutual funds lapped up financials, IT among largecaps in June; shunned state-run energy cos  Economic TimesMumbai: Mutual funds mostly lapped up financials and software services stocks in June, even as they shunned energy companies within the largecap universe.
‘Value investing hasn’t worked in past 8-9 years, but then cycles change’  LivemintDo you buy a stock when it is cheap or do you buy it when it's expensive because it is growing fast? Vetri Subramaniam, group president and head of equity at ...
Growth Stocks Heat Up This Frost Mutual Fund — One Type Of Growth Stock In Particular  Investor's Business DailyFrost Equity Growth Fund invests in secular, consistent and cyclical growth stocks. Here's why most of the fund's bets are on secular growers.
Investors Are Usually Wrong. I’m One of Them.  The New York TimesForget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack. That is ...
Growth Stocks Drive This American Century Mutual Fund To Outperform  Investor's Business DailyWant a fund that beats the broad market, and owns leading growth stocks like Alphabet, Amazon and Facebook? Check out American Century Ultra Fund.
MF Portfolio Doctor: Why Jain needs to avoid thematic mutual fund schemes  Economic TimesThe Portfolio Doctor assesses the health of the portfolio, examines the schemes and their suitability with regard to the goals and recommends corrective ...
The Mutual Fund Show: Crisil's Ranking Of The Best Schemes After June Quarter  BloombergQuintBased on the performance, Crisil ranked 472 mutual fund schemes—that account for 84.86 percent of the industry's open-ended AUM—as of June. Of these, 213 ...
Explained: What is mutual fund NFO?  LivemintIn an NFO, you can subscribe to the units of the new fund, which is being launched, at an offer price which is usually set as ₹10.After the NFO, an open-ended ...
Largecaps top AMC's shopping list in 2019; midcap, smallcap stocks see selling  Moneycontrol.comLargecap stocks have been the preferred pick of the top 10 asset management companies in 2019 as assets under management in largecaps increased 2.9 ...
Fund of Funds is a better fit for DIY investors  MoneycontrolThe budget had nothing much for mutual funds to talk about. But there is one provision that is likely to bring some cheer to a certain category of mutual ...
Analysts are encouraged Lyft insiders aren't dumping stock at their first chance since the IPO  CNBCLyft, the smaller ride-hailing rival of Uber, announced two weeks ago that share lockups would expire about a month earlier than expected on Aug. 19.
The Best Investments You Can Make Right Now  NerdWalletBased on your timeline and risk tolerance, the best investments to make right now are high-yield cash management accounts, money market funds, CDs, bonds, ...
Major debt fund overhaul on the cards at Aug 21 Sebi board meet  Economic TimesMumbai: The Securities and Exchange Board of India (Sebi) is set to meet on August 21 to further strengthen regulations for debt mutual funds, ETNOW reported ...
Investing Insights: Tech Stocks and Lower-Risk Foreign Funds  Morningstar.comOn this week's podcast, picks for upstream energy stocks, T.Rowe Price large-cap funds, and tax efficiency of different fund types.
Stock volatility spurs worst run of ETF withdrawals in six months  InvestmentNewsAlmost $18 billion exited U.S.-listed equity ETFs over the past three weeks.
Is Vanguard STAR Fund (VGSTX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceIf you've been stuck searching for Allocation Balanced funds, consider Vanguard STAR Fund (VGSTX) as a possibility. VGSTX carries a Zacks Mutual Fund ...
Dow Jones Up 883 Points From Aug. 15 Low; These Tech Stocks Are Forming A New Base  Investor's Business DailyThe Dow Jones Industrial Average has jumped more than 880 points, or 3.5%, from last week's low as chip stocks, oil and Chinese equities strengthen.
Our Ultimate Stock-Pickers' Top 10 High-Conviction and New-Money Purchases  Morningstar.comFor the past decade, our primary goal with the Ultimate Stock-Pickers concept has been to uncover investment ideas that not only reflect the most recent ...
Sensex, Nifty fall for third day as HDFC twins plunge  Economic TimesNEW DELHI: Equity benchmark indices Sensex and Nifty extended their decline for the third session in a row on Monday, dragged by banking, realty, FMCG and ...
Why picking the right mutual fund is key in a tough market  LivemintWhy have mutual fund (MF) returns fallen? Mutual funds primarily invest in equity (stocks) or debt (bonds). On the equity side, mid and small cap MFs have given ...
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 ...
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 ...
MF shopping list: Top 30 stocks that fund managers bought & sold in June  MoneycontrolMutual funds increased allocation to private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU bank stocks in June, an ICICIdirect report said.
Want to Test Your Managers' Mettle? Ask Them to Work Backward  Morningstar.comDon't settle for reassurances. Ask active fund managers to explain how they'll deliver the value they purport to add after fees.
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.
What India's three largest mutual funds bought and sold in June  Economic TimesHeres what the top three asset managers bought and sold last month.
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 ...
Mutual funds’ exposure to this space at all-time high; should you buy?  Economic TimesMoney managers on Dalal Street continued to shower affection on private banks for the ninth successive month as their exposure hit 19.90 per cent in June, ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
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 ...
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 ...
Govt increases limit to disclose investment in stocks, mutual funds for employees  Moneycontrol.com*Service* rules say no government servant shall speculate in any stock, share or other investment.
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 ...
All you need to know about liquid mutual funds  Economic TimesThe NBFC crisis has brought liquid funds back in favour as they carry lower risk than corporate FDs.
Should you invest in algorithm-based quant mutual funds?  Economic TimesQuant funds work on a data-driven model that relies on a mix of parameters and algorithms to identify the right stocks at the right time. But can they beat actively ...
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 fund SIPs don't make equity investing risk-free. Here's why  Economic TimesSIPs do reduce the risk of market timing & allow investors to buy more units when their price falls.
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 ...
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 ...
Actively-managed large cap mutual funds poised for a comeback  Economic TimesDefying predictions of their imminent irrelevance, some actively-managed large cap mutual fund schemes have bounced back to the top of the return chart.
MF portfolio doctor: Babji needs to exit direct investments in stocks, take mutual funds route  Economic TimesThe Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals.
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 ...
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 ...
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 ...
A mutual fund for daughter’s education  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.
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.
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 ...
Stick to MFs if you lack knowledge on stocks  LivemintWhile equity is surely the way going forward considering your age and the financial goals, how you buy in equity is important.Direct stocks work very well if done ...
Top 25 equity mutual funds failed to deliver positive returns in June  Economic TimesNEW DELHI: Top 25 mutual fund schemes, managing retail money in excess of $1 billion (Rs 7,000 crore) each, failed to deliver positive returns in June.
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 ...
Investment limits Sebi prescribes for mutual funds  LivemintIn case of unrated debt instruments, a mutual fund cannot invest more than 10% of the portfolio in a single issuer and 25% in all such securities.In case of listed ...
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 ...
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' ...
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 ...
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 ...
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha ...
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.
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 ...
I have been investing in mutual funds via SIPs. Should I make any changes in my schemes?  Economic TimesI have been investing for the past year in the following funds via SIPs: Rs 2,000 in SBI Magnum Multi Cap, Rs 1,000 each in SBI Equity Hybrid Fund and Canara ...
First-time investors can look at these mutual funds for long term  Economic TimesInvestors, who were waiting on the sidelines for the uncertainty to recede, are now looking to deploy their cash. But, valuations remain steep.
Best mutual funds to invest for five years  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.
What India's top three mutual funds bought and sold in February  LivemintStock funds took in a net ₹5130 crore, a 17% drop over January, data from the Association of Mutual Funds in India show .Here's what the top three asset ...
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.
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.
How much should I invest in ELSS, large-, mid-, small-cap mutual funds?  Economic TimesI am 25 years old. I earn around Rs 50,000 per month. Firstly, how much should I invest in large cap or small and mid cap funds as well as tax saving mutual ...

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Long Term Investing

In his wonderful book, 'Multiple Streams of Income', best selling... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Is The Bear In The Cage?

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

The Stock Trading Plan - Why You Must Have One To Trade Successfully

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

Where Is The Beef?

Where is the beef? Or maybe it should be where... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Its A Bull, Its A Bear, Its Suptertrader!

The higher the market goes the more confusing are the... Read More

How To Be A Winner

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

Struggling Stocks, Booming Commodities

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

Trading Stocks ?Never Forget About A Past Trade

We all know that emotions control every decision that an... Read More

12 Basic Stock Investing Rules Every Successful Investor Should Follow

There are many important things you need to know to... Read More

Hill of Hope

Just about now everyone is confused as to which way... Read More

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Overvalued & Underbought

With all the bad news that has been dumped upon... Read More

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading futures.... Read More

Hedge Funds: the Good, the Bad, and the Ugly

Alfred Winslow Jones started hedge funds in 1949. He was... Read More

Does Japan Matter?

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

Stealth Bull

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

Stock and Fund Dividends

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

Play another Day

Money management starts with protecting your capital, realizing profits and... Read More