Bull or Bear?






Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that. It looks like he is right - for a change. I remember he said the same thing in 1999 and 2000 and I ended up losing most of my money. But it looks good right now.



Yes, it does look good now and I have been a buyer since the middle of last year. Is this another bubble? The talking heads on CNBC-TV say we are back in the bull market again.

My one rule has been to buy when the market turns up and it sure has done that; however, there is another rule that has kept me from losing money and that is to sell when the market starts going down. The nice thing about this is you don't have to be a market "expert" to know when this happens. All you have to look at is the price of one of the major indexes such as the S&P500 or the NASDAQ Composite to see when they penetrate their 200-day moving average. One that I watch all the time is the Investor's Business Daily Mutual Fund Index that is in the first section of the paper. You don't even have to buy it as you can read it at the library.

Anyone who tells you he predicts when or where the top or bottom of a market will be is usually guessing unless he has a proven real time track record of making those calls for many bull and bear markets. Predictors are usually wrong, but trend followers are almost always right. The reason is simple. Once the underlying facts, whether physical or emotional, come into play and a new direction is found the stock market will follow that course until another major set of facts comes into play.

This can be seen when the market becomes very overbought and overvalued as it was in 2000 and very oversold as it became in October 2002. A new set of circumstances were initiated and the general market took off in another direction. These long-term trends are relatively easy to determine by anyone who will to listen to the voice of the market.

Long term trend following has a drawback. You will not be a buyer at the bottom or a seller at the top because of the time delay, but you will never lose large sums of money as many did from 2000 to 2003. The use of this simple method will not require research or loads of useless information that Wall Street insists you need. You will be able to determine on your own when a major trend changes and then act accordingly to either buy or sell.

Those who have been wise enough to observe saw the trend change and became buyers last Spring and Summer and now have nice profits.

Yes, it is a bull.

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

al@mutualfundstrategy.com; 1-888-345-7870

 Continue for more related information:
RELATED RESULTS:


 

The Stock Market is a Roller Coaster: Prepare for the Ups and Downs
IT'S REMINISCENT OF THE OLD children's tale about an old Chinese farmer who tells his friends his...

Mr. Market
I constantly hear the talking heads on CNBC-TV, the radio and other places talking about THE market. Of course, they mean the stock market which actually ...

KISS Formula
There are formulas for just about everything,but it has been shown that the simpler theformula or method of doing a particular taskthe better it works. ...

Why the Majority Fail at Stock Investing
The gleam and bright lights of Wall Street lure in many new investors each year, only to send them home crying to their frie...

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....

Financial Crime
Congress recently passed another new law that is supposed to outlaw financial crime. Corporate officers will be sent to jail for "cooking the bo...

Hedge Fund Advertising
Have you seen all those big full page ads for hedge funds in the Wall Street Journal, the Financial Times, Investors Business Daily? Youhaven'...

Overvalued & Underbought
With all the bad news that has been dumped upon the economy for some reason the stock market is going up. Why? ...

E-mini Day Trading - Day Trading for Beginners - Stock Market Timing Software
I mean it when I say that. While plastic silverware is fine for picnics and parties, it...

So, What is This Stock Market Thing Anyway?
We've all heard of the stock market and probably have a general idea of what it is and how it works either from high scho...
Table of Contents | Article-Max Directory