Pathways

During our travel down life's path we come to many places where the trail divides and we must make a decision. Some involve psychological (emotional) choices ? marriage, divorce, leaving home, career changes, etc. Others are monetary ? buying a new car, home, starting your own business, investing, etc. Many are interwoven having aspects of both psychological and monetary.

The marriage decision means you have decided to live and share everything with a partner and also support that partner in every way including financial.

Investing in anything is at first mostly financial, but as you accumulate a larger and larger amount it begins to have a grip on your emotions. Greed and fear are the two great motivators in the investment community. Everyone wants to buy that $1.00 stock that goes up to $200 per share. Unfortunately, for most, the pot of gold remains at the end of the rainbow. As the years pass by and your investments become larger and larger fear of loss creeps into the subconscious. No one wants to lose.

During the past 3 years we have seen many people lose a great deal of their stock market investments. Both fear and greed have taken their toll. Wall Street has not taught you how to prevent loss and they never will. Until you have experienced losses you go along with the program and too late you realize there must be a better way, another path. Once you have found it you now have the decision to break away from old conventional wisdom. You realize that you have been following the wrong path.

Wall Street's maxims of Buy and Hold, Do Research and Dollar Cost Average have been and still are false. Once you have come to this understanding you will be on the road to successful investing. You will have taken the right turn on the path.

Losing money is not only a financial hardship but also a psychological burden. No one likes to be wrong, but hear this bit of advice about the stock market. It is OK to lose a small amount, but never OK to lose a large amount. Protection of your capital is of prime importance.

Whenever you buy a stock or mutual fund your first consideration should be how much am I willing to lose if it goes down instead of up? You can set that parameter at 5% to 20% of your investment. For stocks you can have the broker put in a permanent stop loss order, but for mutual funds you must set the price and make the call to tell the broker to sell you out. You are on the right path because you are in control. If you do sell with a 10% loss remember you now have 90% of your money remaining so you can find a more profitable vehicle. Ask around to find out how many of your friends now wish they had had one of those stop orders in place during the past 3 years.

The secret pathway to success in the stock market is selling, not buying.

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:


Investor's Business Daily

Why Mutual Fund Managers Are Betting On Tech, 'Quality' Stocks
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The end-of-summer blahs and elevated geopolitical uncertainty took their toll on the stock market and stock mutual funds in August, which notched their first loss of the year. XAutoplay: On | OffAfter having fallen nearly 2% around mid-August, the ...


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Hodges Mutual Fund Aims For Elite Status With Bets On Leading Stocks Like Emergent BioSolutions
Investor's Business Daily
Hodges Small Intrinsic Value Fund (HDSVX) is off to a good start, thanks to its three-heads-are-better-than-one management style and an appetite for leading stocks such Emergent BioSolutions (EBS), Consolidated Tomoka (CTO), Westwood Holdings (WHG) ...
Emergent Biosolutions, Inc. - EBS - Stock Price Today - ZacksZacks Investment Research
Havey Adam - SEC.govSEC.gov
EBS | Stocks Latest Headlines for Emergent Biosolutions - BarchartBarchart

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CNBC

Fund managers really love the big-name tech stocks, but hate the rest of the sector apparently
CNBC
The researchers looked at nearly 7,000 equity strategies from investors like mutual funds and pension funds. The five most heavily weighted stocks were Alphabet, Apple, Amazon, Facebook and Microsoft. No surprises there. But the average weight of tech ...


Yahoo Finance

4 Top Mutual Funds to Buy for a 401 (k) Plan
Yahoo Finance
Fidelity Balanced FBALX, with a Zacks Mutual Fund Rank #1, seeks income and capital growth consistent with reasonable risk. FBALX invests approximately 60% of assets in stocks and other equity securities and the remainder in bonds and other debt ...


3 Top-Ranked JP Morgan Mutual Funds to Add to Your Portfolio
Zacks.com
It has a legacy of investment management since 1865. Also, JPMorgan is the eighth-largest mutual fund firm in the U.S. and prides itself as the nation's leader in equity fund flows. JPMorgan offers managed accounts and retirement products. The company ...

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3 Strong Buy USAA Mutual Funds to Boost Gains
Zacks.com
USAA Investment Management Company allocates its assets across a wide range of mutual fund categories including both equity and fixed-income funds. The company seeks to follow military values — Service, Loyalty, Honesty and Integrity — to offer ...

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Investor's Business Daily

Texas Mutual Fund Managers Explain Hurricane Harvey's Impact On Texas Stocks
Investor's Business Daily
XAutoplay: On | OffEric Marshall and Derek Maupin, lead manager and a co-manager respectively of Texas-based Hodges Small Intrinsic Value Fund (HDSVX), talk about that impact on several Texas-based stocks they hold in IBD's upcoming monthly mutual ...

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Investorplace.com

5 Tech Mutual Funds to Buy on Apple Inc.'s (AAPL) New iPhone Launch
Investorplace.com
On the 10th anniversary of iPhone, tech behemoth Apple Inc. (NASDAQ:AAPL) launched three new varieties of its iconic iPhone — iPhone 8, 8 Plus and the high-end iPhone X. Although shares of Apple stock declined following the launch of the new iPhone, ...

and more »

Investorplace.com

7 Stocks to Buy That Will Beat the Pros
Investorplace.com
At the height of the last bull market circa 2007, 65% of Americans were invested in the stock market, whether through individual stocks, mutual funds, ETFs, and 401ks and IRA's. Everyone, it seemed, had stocks to buy. 7 Stocks to Buy That Will Beat the ...


Business Insider

Wall Street is divided over the future of banks
Business Insider
Large-cap mutual fund portfolios carry a 141-basis-point overweight position in financial stocks, relative to their benchmark, making it the group's second-most bullish bet, according to data compiled by Goldman Sachs. At the same time, hedge funds ...

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