"In the past 10 years, out of 6000-plus professionally managed mutual funds, only about 20 were able to beat the 10-year performance of the S&P 500 after expenses and fees. They deserve honorable mention.(Just because they made the list this year doesn't guarantee that they will continue to be on the list)."
Whenever I mention this short list of winners, people always perk up ,for the wrong reasons. The lesson is that 5'980 other rabbits, racing with all their might couldn't outpace the lowly tortoise. The risk of picking the right rabbit in 6,000 is ridiculous compared to the no-brainer of simply placing your bet on the tortoise. In stock market terms, what is the tortoise? It's the S&P 500.By now, you've heard of index funds. One of the most popular index funds is a special mutual fund made up of all 500 stocks in the S&P 500, what a great concept. If you can't beat the market, then buy the whole market. Bet that the entire market will continue to go up.....in the long run, of course. There are so many advantages to investing in index funds compared to the average professionally managed equity mutual fund. For the average unsophisticated investor, the no-brainer approach is to buy a few carefully selected index funds and forget about them. Here's the answer to another of the three critical questions. Which stocks should I buy? the answer is all of them.Buy an index fund made up of all the stocks in the market. Odds are with this approach you'll do just as the vast majority of professional fund managers and perhaps much better. You don't have to agonize for months over which stocks to buy and when.For more information please Click Here!
Monday, October 14, 2013
Saturday, April 14, 2012
Stock Trading Tools
I'm going to show you a method for winning in the stock market. It's the idiot's approach, the lazy way, the simplest way, ironically, the best way. The first lesson here is the longer you invest, the lower the risk. Suppose you happen to sink your inheritance into the market at the top of one of the peaks, just before a huge dip. The best strategy would have been to just strip yourself to the mast and hold on through the gale. This would have brought you safely to a continuing cadence of escalating profits. You can always win if you just hang on long enough-every single time! Will this trend continue into the future? Who knows? At worst, the market could collapse into a steep decline from which the world will never recover (sounds ridiculous, doesn't it considering all this bloody century has seen and survived?)Maybe the market will take a breather and languish for a decade as it seems to be happening now. But even so, if you give yourself a long enough time frame, the overwhelming odds are that things will eventually improve and keep improving. History has shown that the shorter your investment horizon, the greater your risk. Suppose you got into the market and things started to look bad. Instead of holding for the long run, you got spooked and jumped out after only a year. What would be the odds of your success? From 1954 through 2003, there have been only 14 years in which the overall market (as measured by the S&P 500) lost ground. That's about one losing year for every four winning years. Over three quarters of the years have been winners. What does that tell you? The odds of winning are in your favor. Nonetheless, on a short-term basis, you have about 22% chance of losing all of your-chambered handgun. That's too high a risk to take in the short run.
If you could hold on for five years, you would lower the risk of loss about 15%.There were very few five-year periods in the past half century in which you would have ended up with a net loss. If you hold for 10 years, the risk of loss is less than 1 in 20. The same logic holds true for 15-, 20-, 25-year holding periods. The longer you invest, the lower the risk. In fact a 25-year holding period has been shown to give you a zero risk situation. This post just answered one of the critical questions for the beginning investor who is planning to put some money into the stock market. When should I sell? Sell somewhere between 10 and 25 years from now.
For more information please Click Here!
If you could hold on for five years, you would lower the risk of loss about 15%.There were very few five-year periods in the past half century in which you would have ended up with a net loss. If you hold for 10 years, the risk of loss is less than 1 in 20. The same logic holds true for 15-, 20-, 25-year holding periods. The longer you invest, the lower the risk. In fact a 25-year holding period has been shown to give you a zero risk situation. This post just answered one of the critical questions for the beginning investor who is planning to put some money into the stock market. When should I sell? Sell somewhere between 10 and 25 years from now.
For more information please Click Here!
Best Stock Trading Systems
Richard James Conelly A.K.A "The Penny Stock Prophet" reveals the secret to turning $1000 into $1 million...investing in penny stocks. If you haven't yet heard of James Connelly, it's probably because he is more commonly known by his nickname, "The Penny Stock Prophet," given to him by his peers due to his uncanny ability to discover "breakout" penny stocks just days before they experience RECORD gains. In the last 12 months, Connelly A.K.A "The Penny Stock Prophet" has become an internet sensation due to his stock picking strategy that has changed the lives of hundreds of his followers.
As a 19 year-old college student, Connelly excelled in his studies. In his own words, "School was just something that always came naturally for me. It was too easy, and over time I just started to lose interest. I wanted something different .I needed to find something else to challenge me. That's when I decide to turn to trading stocks."Connelly always had an interest in the stock market, even at a young age. When he was still a teenager, Connelly's father taught him how to read charts, and quarterly earnings reports. "My dad even got me a subscription to the Wall Street Journal for my 16th birthday, " says Connelly.
Having an understanding of the fundamentals of the market, at such a young age, was advantageous to Connelly's eventual future as an investor. The prospect of riches, and the unlimited possibilities that the stock market offered, soon began to recapture Connelly's imagination."The stock market to me was just a big puzzle. It fascinated me. I felt that if I could figure out the pieces to that puzzle, I could develop a strategy that would give me a huge advantage over other traders," Says Connelly, "I knew it would take a lot of trial and error, but I was convinced I could develop a method that would give me an edge in finding the next breakout stock."
On a whim, Connelly opened his first trading account his freshman year in college. "Initially, it started off has just a hobby. I wanted to learn the process, and start small. Once I figured out a strategy that could win consistently, then it was time to turn it up a notch."Connelly began like any other investor. He began studying charts, utilizing resistance calculators, analyzing financial reports, and re-learning the basic fundamentals of trading. Connelly's hobby soon became an obsession as he began skipping his classes, preferring to spend the majority of his time researching and trading stocks.
"I was making more money from my dorm room than most people make at their jobs, so I just figured going to class was a waste of time. I was on to something, and I wanted to keep the momentum going."To Connelly, spending the day trading was more exciting and satisfying than sitting in a classroom being lectured. Eventually, college became an afterthought. Over the next few months Connelly spent hours in his dorm room pouring over charts, analyzing trading patterns, volume, resistance levels, and any other identifiable factors he could find to help him identify a point when a stock was about to experience a bullish trading pattern.
Connelly was convinced that that winning stocks must have similarities, and that if those similarities could be discovered, it would be the key to identifying breakout stocks before they happen."I felt certain that I could create a strategy that could identify a breakout stock, before it began to rally. There had to be a signal, something that could be used as an identifier to 'red-flag' a stock that was about to see a major move."Connelly eventually discovered 4 key variables that he believed was the secret to identifying a breakthrough stock. To this day Connelly has not released these variables to the public."I've been offered a lot of money to sell my strategy, but that's not going to happen. I want everyone to have the opportunity to profit from my strategy, not just someone who will pay millions for it, and keep it all to themselves."
What Connelly is willing to share with the public, is how identifying the Psychological Support Level (PSL) of a given stock, is the key to his method being so successful."While the 4 variables I discovered are still a closely guarded secret, what's not a secret is how PSL can be catalyst to finding breakout stocks. It is the 'match' that lights the fire." Connelly continues, "Most people don't understand how incredibly important PSL is, in discovering under-valued stocks that are about to skyrocket."
Psychological Support Level is nothing new in the trading world. It is the activity of human behavior that can cause a stock to be sold at well below its actual worth. In fact, many investors believe PSL is one of the most important factors in identifying under-valued stocks. However, just discovering undervalued stocks is not enough. Discovering the undervalued stocks that are about to move, that's the hard part.
"I became interested in the possibility of creating a strategy that utilized PSL to identify and predict human behavior and its influence on a winning stock," says Connelly. "I was certain if I could find a way to combine this with the 4 key variables I discovered, I could greatly outpace the overall market, and see rapid percentage gains in my portfolio."Connelly believed that PSL was the "missing link" to creating a strategy that would maximize profits and potential gains in the market.PSL is currently used by mathematicians to predict and determine how human behavior affects population growth, crime and even terrorism. It's called Psychometric Science, and its no longer science fiction. So Connelly posed the ultimate question.
Why Not the Stock Market?
Connelly felt confident that PSL, combined with the 4 variables he had discovered, would prove to be the missing piece of the puzzle that could help 'predict' a bullish trading pattern…. Before it happens, the result?
After months of trial and error, tweaking and testing his strategy; Connelly was successful in creating what would eventually become one of the most popular and wildly successful stock picking strategies in recent memory. This is a strategy that when applied, could predict solid gains in the market 24 to 48 hours…before they happened. When Connelly tested his new stock picking strategy over a period of 30 days he experienced an average gain of 28% on over 11 trades. For any other investor this would be a resounding success...but Connelly was not satisfied. He had a better idea. Since PSL was going to be such a key factor in determining which stocks were about to move, why not implement this strategy in a place that PSL plays the biggest role in discovering winning stocks? The Micro-Cap Sector! A.K.A. Penny Stocks!
Because PSL plays such a huge role in the micro-cap sector, Connelly was convinced that if he switched his strategy toward micro-cap stocks, he could achieve even greater gains than he could on the big-board stocks. The Results Were Astounding!
For more information on how this is possible please Click Here!
As a 19 year-old college student, Connelly excelled in his studies. In his own words, "School was just something that always came naturally for me. It was too easy, and over time I just started to lose interest. I wanted something different .I needed to find something else to challenge me. That's when I decide to turn to trading stocks."Connelly always had an interest in the stock market, even at a young age. When he was still a teenager, Connelly's father taught him how to read charts, and quarterly earnings reports. "My dad even got me a subscription to the Wall Street Journal for my 16th birthday, " says Connelly.
Having an understanding of the fundamentals of the market, at such a young age, was advantageous to Connelly's eventual future as an investor. The prospect of riches, and the unlimited possibilities that the stock market offered, soon began to recapture Connelly's imagination."The stock market to me was just a big puzzle. It fascinated me. I felt that if I could figure out the pieces to that puzzle, I could develop a strategy that would give me a huge advantage over other traders," Says Connelly, "I knew it would take a lot of trial and error, but I was convinced I could develop a method that would give me an edge in finding the next breakout stock."
On a whim, Connelly opened his first trading account his freshman year in college. "Initially, it started off has just a hobby. I wanted to learn the process, and start small. Once I figured out a strategy that could win consistently, then it was time to turn it up a notch."Connelly began like any other investor. He began studying charts, utilizing resistance calculators, analyzing financial reports, and re-learning the basic fundamentals of trading. Connelly's hobby soon became an obsession as he began skipping his classes, preferring to spend the majority of his time researching and trading stocks.
"I was making more money from my dorm room than most people make at their jobs, so I just figured going to class was a waste of time. I was on to something, and I wanted to keep the momentum going."To Connelly, spending the day trading was more exciting and satisfying than sitting in a classroom being lectured. Eventually, college became an afterthought. Over the next few months Connelly spent hours in his dorm room pouring over charts, analyzing trading patterns, volume, resistance levels, and any other identifiable factors he could find to help him identify a point when a stock was about to experience a bullish trading pattern.
Connelly was convinced that that winning stocks must have similarities, and that if those similarities could be discovered, it would be the key to identifying breakout stocks before they happen."I felt certain that I could create a strategy that could identify a breakout stock, before it began to rally. There had to be a signal, something that could be used as an identifier to 'red-flag' a stock that was about to see a major move."Connelly eventually discovered 4 key variables that he believed was the secret to identifying a breakthrough stock. To this day Connelly has not released these variables to the public."I've been offered a lot of money to sell my strategy, but that's not going to happen. I want everyone to have the opportunity to profit from my strategy, not just someone who will pay millions for it, and keep it all to themselves."
What Connelly is willing to share with the public, is how identifying the Psychological Support Level (PSL) of a given stock, is the key to his method being so successful."While the 4 variables I discovered are still a closely guarded secret, what's not a secret is how PSL can be catalyst to finding breakout stocks. It is the 'match' that lights the fire." Connelly continues, "Most people don't understand how incredibly important PSL is, in discovering under-valued stocks that are about to skyrocket."
Psychological Support Level is nothing new in the trading world. It is the activity of human behavior that can cause a stock to be sold at well below its actual worth. In fact, many investors believe PSL is one of the most important factors in identifying under-valued stocks. However, just discovering undervalued stocks is not enough. Discovering the undervalued stocks that are about to move, that's the hard part.
"I became interested in the possibility of creating a strategy that utilized PSL to identify and predict human behavior and its influence on a winning stock," says Connelly. "I was certain if I could find a way to combine this with the 4 key variables I discovered, I could greatly outpace the overall market, and see rapid percentage gains in my portfolio."Connelly believed that PSL was the "missing link" to creating a strategy that would maximize profits and potential gains in the market.PSL is currently used by mathematicians to predict and determine how human behavior affects population growth, crime and even terrorism. It's called Psychometric Science, and its no longer science fiction. So Connelly posed the ultimate question.
Why Not the Stock Market?
Connelly felt confident that PSL, combined with the 4 variables he had discovered, would prove to be the missing piece of the puzzle that could help 'predict' a bullish trading pattern…. Before it happens, the result?
After months of trial and error, tweaking and testing his strategy; Connelly was successful in creating what would eventually become one of the most popular and wildly successful stock picking strategies in recent memory. This is a strategy that when applied, could predict solid gains in the market 24 to 48 hours…before they happened. When Connelly tested his new stock picking strategy over a period of 30 days he experienced an average gain of 28% on over 11 trades. For any other investor this would be a resounding success...but Connelly was not satisfied. He had a better idea. Since PSL was going to be such a key factor in determining which stocks were about to move, why not implement this strategy in a place that PSL plays the biggest role in discovering winning stocks? The Micro-Cap Sector! A.K.A. Penny Stocks!
Because PSL plays such a huge role in the micro-cap sector, Connelly was convinced that if he switched his strategy toward micro-cap stocks, he could achieve even greater gains than he could on the big-board stocks. The Results Were Astounding!
For more information on how this is possible please Click Here!
Saturday, March 10, 2012
Dollar Cost Averaging
The sooner you buy,the longer you have your money at work and the more money you have to compound.Take 50% of your monthly savings and sock it away into your chosen index fund(s).Do this every month without fail for the rest of your life.If you'll do this,even if you do nothing else i describe i have posted in my previous posts,then in due time the floodgates of prosperity will pour into your life.But if all of your short-term "hare-brained" schemes come to naught,this "tortoise" strategy will have you slowly giggling yourself toward a prosperous future. If you're like most folks,you don't have a lump sum lying around.You're forced to invest in periodic payments over time.When you invest a fixed amount every single month for a long period of time,you're actually practising a rather sophisticated strategy called dollar cost averaging.With dollar cost averaging,you're actually hoping for a price decline every once in a while.It gives you a chance to buy more shares at a cheaper price.That is why you can look at temporary stock market slumps as positive events in your long-term investment horizon. Dollar cost works only if you continue buying,especially during bad times and hold on until good times return.If you stop buying during the bad times,you lose your advantage when thing rebound.Here's the number one reason that dollar cost averaging is so powerful:it completely eliminates the need to guess when you should buy.It takes away the need for the market timing. What is market timing?If you're really smart(or have a lot of time on your hands),you can try to forecast the highs and lows in the market.At the peak,when the market is just beginning to dip from its highs into a trough,market timers say you should cash in your chips and park your money in some risk-free checking account.Then,when the market hits bottom and starts to bounce back,that is the precise time for you to buy with both hands.Sounds easy,but only handful of investors have been smart enough to do it. For example,during the entire decade of the 1980s the S&P 500 Index gained 17.6% annually,with frequent dips and spurts.During this period there were 2,528 trading days.A full 28% of the entire profit for the decade was generated in just 10 days.If you had been trying to time the market and happened to miss those 10 critical days,you would have lost 28% of your gain for the entire decade! With dollar cost averaging,you don't have to be smart.You can be a total idiot and still win.You just buy every month after month,you buy during the good times,you buy during the bad times.You don't care what the headlines are saying.You ignore the experts on TV.You don't get jealous when you hear that one stock(out of 10,000) tripled in price that day.Alot of other investors also bought the one that dropped by two-thirds on the very same day.You just blindly and ignorantly do what you have alwaysdone-buy,buy.buy.The average price of your continued buying will give you a wonderful average long-term return.This,of course,assumes that the past 50 -year history of 11% compounded annual stock market gains continue for the next 50 years into the future.This is not necessarily a sure bet! For more information Click Here!
Subscribe to:
Posts (Atom)