I Love To Lose Money

Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. During this past 3 years I have made money each year because I was not afraid to sell. The great secret that Wall Street does not want investors to know is all about selling, not buying.

The recent headlines scream"10 Stocks To Buy Now", "100 Best Mutual Funds For 2003", "Make 25% With These Safe Stocks" and "Now Is The Time To Buy". All are either stupidity or wishful thinking. Brokers and financial planners don't want you to find out that they don't know either so they come up with great stories about the equities they recommend. Unfortunately, when the stock or fund heads down it becomes one of those buy and hold situations and they tell you that you are "in for the long haul" and "the market always comes back". I hope that by now you have learned this is not true.

When there is a secular bear market, as I believe we are in now, it could be many years before we get back to "even". Last year 96% of all stock equity mutual funds lost money and the average fund lost 21%. These are times when the only safe place for money is in cash ? a money market account. For the previous 3 years money in your mattress outperformed the stock market by 40% and for lots of folks much more. Here is one your broker will not tell you ? Cash Is A Position.

The first thing you must learn about investing is how to protect yourself from losses. I mean big losses. When I was a floor trader on the exchange I lost on about 40% of my trades, but I never lost much. I came to love those little losses because I still had almost all my money available to find a better position. One that would make money.

Almost all of the magazine writers, talking heads and brokerage analysts are professional losers. It is easy to prove because they never tell you where to sell what they are telling you to buy. If you don't go in with a plan to protect your money it is like a general who goes into battle with no plan for retreat should he find he couldn't win the battle. One of the simplest money savers is the 10% stop. It you buy a stock or no-load mutual fund you should not take more than a 10% loss. This will leave you with 90% of your money that could find a real winner. The small losses will never break you. It is sitting with a loss that gets bigger and bigger and bigger is the one that will ruin you.

Learning to love the little losses will make you rich.

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:

Best large & mid cap mutual funds to invest in 2019  Economic TimesThe re-categorisation and rationalisation of mutual funds by Sebi last year created some new categories, including the large & mid cap mutual fund category.
Fund managers' picks: Large, mid & smallcap stocks that MFs bought, sold in Dec  Moneycontrol.comMF assets declined to Rs 22.8 lakh crore in December 2018 from Rs 23.4 lakh core in Nov 2018 on the back of moderation in the flows in equity funds and ...
Under pressure to perform well, MFs bought & sold these stocks in December quarter  Economic TimesNEW DELHI: With back clearly to the wall after a not so pleasant year for equities, mutual funds (MFs) went about recasting their portfolios a bit in the December ...
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.
Hot and Cold Stocks of Mutual Funds in November 2018  MoneylifeIn November 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
Money with Monika Season 2, Episode 2: Mutual funds versus direct stocks  LivemintIn this episode of Money With Monika, personal finance expert Monika Halan talks about the benefits of choosing a mutual fund over direct stock investments.
Remembering Jack Bogle, colossus of mutual fund industry  LivemintVanguard founder Jack Bogle turned the mutual fund industry on its head more than 30 years ago by thinking of and acting in the interest of the retail investor.
Should investors worry about P/E ratio of mutual funds?  Economic TimesPrice to earnings or P/E ratio is an important parameter in the world of stocks. Some pundits believe that it is time mutual fund investors start taking the P/E ratio ...
Small Cap Stocks: This Alger Portfolio Was 2018's Top Performing Fund  Investor's Business DailyIn 2018, $2.3 billion Alger Small Cap Focus Fund (AOFAX) blew away rivals that also focus on small cap stocks. In a year when the broad market, measured by ...
The dangers of high mutual fund inflows  LivemintIndian mutual funds have pumped about ₹1.2 trillion into the equity markets in each of the last two years.
Large-cap and Mid-cap Stocks Top Mutual Fund Schemes Are Betting On  MoneylifeEquity mutual funds (MFs) are run by expert stock-pickers.
SEBI tweaks stock weightage norms for equity ETFs, index funds  Moneycontrol.comIn a circular issued to all mutual funds and asset management companies, SEBI said an index used for equity ETFs or index funds should have at least 10 stocks ...
This little-known tax plan beats every other ELSS fund; should you invest?  Moneycontrol.comKnow here what is Quant Tax Plan and why it is topping the charts.
3 JPMorgan Mutual Funds to Buy Now  Zacks.comBelow we share with you three top-ranked JPMorgan mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy).
Mutual Fund Update: Top 5 stocks that MFs sold  Dalal Street Investment JournalMutual funds are institutional investors, the buying and selling transaction of fund houses happen in huge numbers which also affects the stock prices in some or ...
Gold, mutual funds, equity - where to invest in 2019?  Moneycontrol.comAs we enter 2019, the question on everyone's mind is: can we say goodbye to market volatility that 2018 unleashed upon us? The answer may not be that simple ...
3 Technology Mutual Funds for 2019  Zacks.comImproving industry fundamentals and emerging technologies such as wearables, VR headsets, drones, virtual reality devices, and artificial intelligence are the ...
MFs bullish on investments in debt on hopes of lower rate  Economic TimesMUMBAI: Mutual funds are turning bullish on debt investments with a change in the interest rate outlook. Fund houses Aditya Birla, Kotak and IDFC have ...
Berko: Do not invest in Chinese stocks, mutual funds  The ColumbianDear Mr. Berko: My wife and I are thinking of investing in Chinese stocks or mutual funds. If we were to buy stocks, we'd invest $10000 each in Alibaba, Noble ...
Sebi issues norms for mutual funds investments in derivatives  Moneycontrol.comCurrently, mutual fund schemes are permitted to undertake transactions in equity derivatives but cannot write options or purchase instruments with embedded ...
Year-end special: Multicap schemes didn't shine in 2018, but don't write them off  Economic TimesMulticap mutual fund schemes, like other equity mutual fund categories, had a tough year in 2018.
What You Owe John Bogle, Iconic American Inventor  ForbesJohn Bogle arguably did as much or more for investors than any Nobel prizewinner, although he never won one. Along with Edison and Ford, Gates and Jobs, ...
Year-end special: Some challenges will continue in 2019, says Jinesh Gopani of Axis Mutual Fund  Economic TimesAxis Mutual Fund is the equity fund house of the year. Axis equity schemes are toppers in almost every equity mutual fund category.
The Top-Performing Mutual Funds Of 2018  BloombergQuintIn a volatile year for stocks, large-cap mutual fund schemes outperformed small- and mid-cap plans tracking the benchmark indices. According to an analysis of ...
Here are 2018’s best & worst-performing mutual funds  Economic TimesThe performance of equity mutual funds was uninspiring through most of 2018, with the best-performing fund giving just 6 per cent return for the year. Among the ...
It’s time to bet on US equities, say experts  Economic TimesSince the start of the year, US stocks have yielded mixed returns.
Growth Stocks Drive This Fund's Special Outperformance  Investor's Business DailyThanks to a sturdy portfolio of growth stocks, MainStay Large Cap Growth Fund is not only ahead of the market but also in positive territory for the year.
When Rules of Thumb Fail  Morningstar.comFaulty Exits Tuesday's column discussed a research paper, “Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors,” that ...
Slideshow | Flashback 2018: 11 stocks that MFs & FIIs pumped money into, but incurred losses  Moneycontrol.comThere are only a handful of stocks where both mutual funds (MFs) and foreign institutional investors (FIIs) bought into in 2018.
15 smallcaps that may turn midcaps in Amfi’s new mcap review for MFs  Economic TimesNEW DELHI: At least 15 stocks, currently bracketed in the smallcap basket, might soon be elevated as midcaps by mutual fund lobby Amfi when it publishes its ...
Sebi brings cybersecurity framework for mutual funds and AMCs  Economic TimesNEW DELHI: Markets regulator Sebi Thursday put in place a robust and stricter cybersecurity framework for mutual funds and asset management companies ...
Net equity mutual fund inflow hits 3-month low in November  Economic TimesEquity mutual fund schemes registered a net inflow of Rs 8,414 crore in November, making it the lowest in three months, mainly due to a volatile market. With this ...
Investors pulled a record $143 billion out of active funds during December's plunge  CNBCAccording to data from Morningstar, actively managed funds experienced outflows of nearly $143 billion in December, their worst month ever.
4 Small-Cap Growth Mutual Funds for 2019  Zacks.comSmall-cap funds that offer good earnings potential could be your best bet amid economic tailwinds and growth projections.
The Best Mutual Funds to Buy in 2019  The Motley FoolHere are not only 17 mutual funds and ETFs to consider, but also tips on what to look for in great funds.
Should I trade stock mutual funds for CDs?  MoneyRates.comMoving out of stock mutual funds into CDs may seem like a good way to manage risk during a volatile market, but wide swings in asset allocation could make ...
The Mutual Fund Show: Should Investors Opt For ETFs Over Active Funds?  BloombergQuintThe heightened market volatility in 2018 took a toll on the performance of large cap schemes as exchange-traded funds—which track an index, a commodity, ...
Founder of financial giant Vanguard, 89, dies  The Business TimesTHE BUSINESS TIMES Companies & Markets - JOHN C Bogle, who founded the Vanguard Group of Investment Cos in 1974 and built it into a giant mutual fund ...
RIL first Indian private firm to post Rs 10,000 crore quarterly profit; 10 takeaways from Q3 earnings  Economic TimesNEW DELHI: Reliance Industries (RIL) on Thursday put up a solid Q3 show by becoming the first Indian private firm to cross Rs 10,000 crore quarterly profit ...
Year-end special: Quality and growth style of investing made Axis Bluechip Fund the topper among largecaps  Economic TimesMost actively-managed largecap funds had a bad year in 2018. However, Axis Bluechip Fund was a notable exception. The scheme figure among the top five ...
Here's Why Stocks Have Sold Off So Steeply In December  ForbesA TV broadcast of Fed Chairman Jerome Powell announcing interest rate hikes on the floor of the NYSE on Wednesday, December 19, 2018. The rest of the ...
Lessons from 5 ‘hot stocks’ that melted in 2018  Moneycontrol.comMany retail investors lost their entire savings after investing in 'hot stocks'. While such stocks can be very rewarding, investors should remember the benefits of ...
U.S. stock funds post record December withdrawals: estimate  ReutersNEW YORK (Reuters) - Investors pulled $98 billion from U.S.-based stock funds in December, a calendar-month record that emphasizes the diminishing ...
Top 19 for 2019: Stocks that could give double-digit returns in a year  Moneycontrol.comMost experts now feel that India Inc. is on track to register double-digit earnings growth in 2019. If the political environment remains stable, we are on track to hit ...
The Zerodha story: How the Kamath brothers built India's largest retail broker  Moneycontrol.comZerodha started its journey in 2010 with a team of five people. Today, it employs over 1300 people.
Take Buffett’s Advice: 5 Vanguard Funds to Buy  Investorplace.comWarren Buffett believes index funds are the way to go for most investors, making these five 'products' from Vanguard Funds worth owning.
Don’t overlook mid-cap stocks — they beat large-caps by a mile in the long run  MarketWatchCompanies with market values of $2 billion to $10 billion are selling at cheaper valuations than large-caps and small-caps.
Stock News: Investors Keen on Shares of Southern Company (The) (NYSE:SO) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Southern Company (The) (NYSE:SO) as their share price hit $46.79 at the end of the most recent trading session.
Stock Watch: Investors Taking a Second Look at Endo International plc (NASDAQ:ENDP) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Endo International plc (NASDAQ:ENDP) as their share price hit $9.63 at the end of the most recent trading session.
John Bogle, Vanguard founder and index pioneer, a 'hero to investors'  The Australian Financial ReviewJohn Bogle, who popularised the low-cost index-based mutual fund as founder of Vanguard Group and insisted that most stock-picking money managers ...
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.
Stock Focus: Investors Keen on Ryman Hospitality Properties, Inc. (NYSE:RHP) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Ryman Hospitality Properties, Inc. (NYSE:RHP) as their share price hit $75.81 at the end of the most recent trading ...
Stock News: Investors Keen on Shares of The Hartford Financial Services Group, Inc. (NYSE:HIG) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over The Hartford Financial Services Group, Inc. (NYSE:HIG) as their share price hit $44.89 at the end of the most recent ...
Stock Watch: Investors Taking a Second Look at DENTSPLY SIRONA Inc. (NASDAQ:XRAY) After Recent Market Moves  The Coin GuildMajor market players are buzzing over DENTSPLY SIRONA Inc. (NASDAQ:XRAY) as their share price hit $39.81 at the end of the most recent trading session.
Is your mutual fund buying or selling stocks too much?  LivemintHere are equity mutual fund schemes with the highest turnover.
Atlassian Stock Pops As Quarterly Earnings, Revenue Top Expectations  Investor's Business DailyAtlassian (TEAM) on Thursday reported fiscal second-quarter profit and revenue that topped expectations and issued mainly in-line guidance for the current ...
Stock Watch: Investors Focusing on Shares of Vornado Realty Trust (NYSE:VNO) as Company Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Vornado Realty Trust (NYSE:VNO) as their share price hit $64.43 at the end of the most recent trading session.
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comMF industry assets grew to Rs 23.4 lakh crore, on the back of improved inflows into liquid funds and steady equity markets.
Stock Focus: Investors Keen on Agnico Eagle Mines Limited (NYSE:AEM) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Agnico Eagle Mines Limited (NYSE:AEM) as their share price hit $39.14 at the end of the most recent trading session.
Stock Focus: Investors Keen on Parsley Energy, Inc. (NYSE:PE) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Parsley Energy, Inc. (NYSE:PE) as their share price hit $18.7 at the end of the most recent trading session.
Stock Watch: Investors Taking a Second Look at Endava PLC Sponsored ADR (:DAVA) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Endava PLC Sponsored ADR (:DAVA) as their share price hit $23 at the end of the most recent trading session.
Stock Watch: Investors Focusing on Shares of Maxwell Technologies, Inc. (NASDAQ:MXWL) as Company Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Maxwell Technologies, Inc. (NASDAQ:MXWL) as their share price hit $2.33 at the end of the most recent trading session.
Stock Focus: Investors Keen on Magellan Petroleum Corporation (:TELL) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Magellan Petroleum Corporation (:TELL) as their share price hit $7.86 at the end of the most recent trading session.
Worried You're Never Going to Be Able to Retire?  Kiplinger's Personal FinanceFive common threats to your retirement (and how you can tackle them now).
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
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.
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 ...
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
Value focussed MF are cutting their exposure to Indian stocks. What about you?  Moneycontrol.comAs valuations climb, the funds have chosen to stay light on Indian stocks and exposure to bonds and arbitrage has gone up.
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe HDFC Asset Management Co. Ltd stock closed 65% up on the first day of listing over its IPO price of ₹1,100 per share. Investors who sold on day one, saw ...
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
New stock ideas boost equity mutual fund portfolios  LivemintIt is imperative for mutual fund houses to beef up their research capabilities, to be able to identify more winning new ideas.
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.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesBy Dhirendra Kumar Hopefully, by now my columns have convinced you that most of your long-term investments should be in equity. The next question to be ...
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
Why your mutual fund earned you less than Nifty in recent market rally  Economic TimesThe more the number of stocks in an index, the weaker is its performance.
Mutual fund lesson: What should you do in volatile markets?  Moneycontrol.comCost of investing in equities is that it is a volatile asset class- there will be times when your portfolio value will be lower than what you invested.
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
Small- and mid-cap mutual funds open doors again, but should you invest?  LivemintL&T Emerging Businesses Fund and DSP Small Cap Fund have allowed *fresh* mutual fund investments, taking advantage of a continued correction in small- ...
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comWhile selecting a scheme for investment or while deciding whether to continue with a current investment, a fund's performance track record does play a critical ...
Best mutual funds to invest in India  Times of IndiaFAQs News: Market analyst says that it would be difficult for investors to get high returns in 2018 pointing to the volatility faced by the stock market. The inv.
Mutual fund holdings in IT stocks touch all-time high  Economic TimesMumbai: Fund managers are betting big on the IT sector, on the back of an improving global macro environment, depreciating rupee and rise in IT spends.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
5 strategies for investing in mutual fund in the current market to get good returns  Moneycontrol.comMutual fund investing is all about ascertaining your goals and setting out to reach them.
These 18 consistent mutual funds may help you to beat stock market volatility  Economic TimesMany equity mutual fund advisors abhor volatility in the stock market. They are always searching for ways to tackle this beast which gives them sleepless nights.
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
List of best mutual fund portfolios as per your risk appetite  Moneycontrol.comYou can build a portfolio of mutual fund schemes based on your risk profile.
Do not make these 7 mistakes while investing in mutual funds  Moneycontrol.comNever forget that you are investing because you have to achieve your financial goals. Investing without a goal is akin to travelling without a destination.
Top stocks bought and sold by mutual funds in June 2018  IndiainfolineInvestors should focus on longevity to create wealth. We advise investors to stay invested in those stocks whose growth story is still intact.
Mutual Funds For First Time Manage More Money In Stocks Than Insurers  BloombergQuintMutual funds for the first time manage more money in equities than insurers as the last stock rout erased the gap that started narrowing after demonetisation.
Some international funds are giving around 40% returns. Should you invest?  Economic TimesInternational mutual funds are topping the return charts. The category has returned around 20 per cent in one year. Should retail investors bet on these schemes ...
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
How to Invest in Mutual Funds  The Motley FoolIf you want to understand how to pick the right mutual fund for you, you've come to the right place. In the guide below, I've put together all the major pieces of ...
Fund managers' bets: Top 10 large, mid and small-cap stocks that MFs bought in October  Moneycontrol.comMF industry assets grew to Rs 22.2 lakh crore on the back of improved inflows into equity-oriented and liquid funds.
Bleeding mutual funds: Should you go back to good old fixed deposits?  Moneycontrol.comAre you worried about the losses on your investments in mutual fund schemes? You are not alone. There are many investors who dumped their good old fixed ...
How to build your mutual fund portfolio from scratch  Moneycontrol.comYou need to know that there is no such thing as a "perfect mutual fund portfolio". There can be numerous reasonably good portfolios, and there's no ...
Mutual fund managers bought & sold these 20 stocks in May  Moneycontrol.comRelative valuations are attractive and around average, but midcap valuations are still looking stretched despite the recent drawdown, Morgan Stanley said in a ...
Top 10 large, mid and smallcap stocks which fund managers bought & sold in September  Moneycontrol.comFears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans, or liquid funds, were the worst hit.

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