When Should I Sell?. Beginners Programming 101.
There are some relatively easy answers to this. In fact, so simple that you won't believe them, but they are things I have learned over the past 30 years as a professional trader on the floor of the commodity exchange in Chicago. These ideas apply equally well to stocks and mutual funds and to just about any kind of investment.
First let's examine what the Wall Street mavens tell you about mutual funds. Ever heard this one? Buy a good fund and stick with it even when it is going down. WRONG! Go with a good fund manager and follow him from fund to fund. WRONG! Don't buy the current "hot" fund, as it will go down when this fad is over and you will lose your money. WRONG!
Let's look at the one basic reason all these ideas are promoted. The mutual fund industry which is the biggest owner of individual stocks in the world doesn't want you to take your money out of their particular fund so they all band together to promote the above ideas even when you are losing money. Fund managers are not paid for performance. They are paid by the amount of your money the fund keeps.
Do you want to stick with anything that is going down in value week after week? The great cry of stockbrokers is, "The market always comes back". But when? In your lifetime?
I don't know of any individual fund manager that has made money for the investors every single year. They all run hot and cold, even the best of them. You can put the best jockey on a slow horse and he is not going to win the race.
The Wall Street gurus talk about "hot money" flowing from one fund to another and want you to feel guilty just because you want to make more profit. Hey, what is your money in there for - cold pizza?
There is one basic rule that will keep you outperforming the pack. If your mutual fund is not currently (meaning in the past 12 months) outperforming the S&P500 Index you should sell it immediately and buy a different no-load fund. Don't buy any fund that charges commission. You can buy
directly from the fund itself (phone numbers listed in IBD very day) or through a discount broker such as Waterhouse, Datek, E-Trade and many others. The maximum commission charge should not be more than $25 no matter the size of the buy or sell with no restrictions on how long you must hold it.
Where do you find the best performing funds? Each day Investor's Business Daily publishes a list of these funds. Look for the day they publish the top performers for the past 12 months.
Don't pay any attention to the longer-term statistics. Each week you should look to see if your fund is still listed in the top 25. If it isn't, sell it and buy the one at the top. Simple. Forget the 3-year, 5-year and 10-year records. My philosophy is 'What have you done for me lately?'.
As far as selling stock this is what I do. I keep at 10% trailing stop which I change every Monday morning with my discount broker. The open stop is 10% of the previous Friday's close. This may or may not be the top of the move but I don't care. I'm either stopped out with a small loss or a profit, but my money is always protected. When I have doubled my money I will sell half my position and let the rest ride with the following stop. Protection of your capital is the most important thing you can do.
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.
1-888-345-7870; al@mutualfundstrategy.com
Article Source: http://EzineArticles.com/
Recently a great idea popped into my head about creating a software program. Now, if the truth be told, I know absolutely nothing about computer programming. But the thought of creating this software was very persistent, so I went to the book store and purchased a few books for beginning programming.
As I was reading about how to become a computer programmer, it dawned on me how similar the computer is to who we are.
Do you realize that the computer is absolutely nothing without a program to run on it? If it weren't any programming installed into your computer, the computer would not be able to do anything. All it would be is a piece of hardware without the programming. All of the information that is stored in the computer is different programming that someone put together for the computer to run.
Did you ever know that in order for a programmer to create software, they have to know exactly what they want the computer to do BEFORE they can start creating the program? In other words, they have to have a vision of what the end product will do BEFORE they start the creation process.
That's exactly how we have to live our life. We have to know EXACTLY what we want to accomplish, have a clear visual picture of it, and then start programming our days in order to create the outcome we desire.
The computer can only do what it is programmed to do. If there is a computer error, the error really isn't with the computer, but in the programming that is stored on the computer.
The same way if something is not going well in our life, it is because of the programming that is in our subconscious mind.
Our subconscious mind is where we create our programming. It is the part of us that stores the information that is pulled out of our consciousness.
Computers are constantly being upgraded. New software is constantly coming out better and more powerful than last year's model. For instance, back in the day, we use to use Harvard Graphics (hope I'm not the only person who remembers that software program). Today we use PowerPoint. The program has been modified and upgraded to bring about better, more efficient results.
If you want to change the outcome of your life so that you can have a improved, better modified and upgraded life, you have to change your programming.
If you are normally a negative person, you will have to learn to change the programming in your subconscious mind from negative to positive.
If you are always thinking of lack and not having enough, then you will have to change your programming from the lack consciousness to wealth consciousness.
If you want to have everything that you desire so that you can do everything
that you want out of life, then you have to change your belief system from believing that you cannot have--to believing that you can have all that you desire.You have to change your inner programming.
But how do you change the programming that has been playing in your subconscious mind for so many years?
Like I always say, "it's a simply process, but it's not easy."
I'm going to let you know exactly what you have to do. If you follow this outline, you can become a beginner's programmer.
The more you work on it the more progress you will see and the more you will learn how to manifest all the abundance that you desire.
The first step is to become aware.
Become aware of your thoughts. Be conscious. Wake up!
Spike Lee is a movie producer and in the beginning of his career, each of his movies would begin or end with someone shouting the words, "Wake up!"
You must wake up and become aware of the programming that is being played over and over again in your subconscious mind.
Once you become aware, you have to realize that you can control your thoughts-it's one of the few things that we have absolute control over.
When you find yourself thinking negative thoughts-stop. Redirect your thoughts from negative to positive.
If you find yourself thinking of lack or telling yourself, I can't afford this or I can't afford that. Stop! Tell yourself that the world is full of abundance and you can have everything that you desire. Repeat to yourself, over and over again, "The Lord is my Shepherd. I shall not want!" And believe it. If you don't believe it at first, say it anyway. Say it over and over until you can feel it in your bones. "The Lord is my Shepherd, I Shall Not Want! And believe that you will never WANT for nothing.
Create affirmations that feel good to your soul and repeat them, daily, over and over and over and over and over and over...until you can FEEL it and believe it.
This is how you reprogram your subconscious mind.
You don't have to study programming for computers, but you do have to learn how to programming yourself for success.ACTION POINT: This week we will be reprogramming our subconscious mind. Become aware of your thoughts and your feelings. If you find yourself feeling or thinking negatively-STOP! Create an affirmation (or a prayer) that makes you feel good and positive and repeat it over and over again. Write it down. Read it out loud. Say it to yourself or out loud when you are driving. Say it to yourself when you are at work. Say it to yourself while you are watching commercials on television. Say it to yourself over and over again in the shower, while you're walking, while you're shopping, while you're in the bathroom, any time you think about it. The more you say it and the more feeling you have when you say it, the quicker the reprogramming will take effect. This is how you change your inner computer-your subconscious mind-by reprogramming your thoughts for success.
Dawn Fields is a motivational speaker, author, and life coach. She teaches how to discover and live your life's purpose. Visit the web site at http://www.dawnfields.com and be sure to sign up for Your Life's Purpose newsletter by sending a blank email to mailto:dawn@dawnfields.com. Tune in each and every Thursday at 9pm Est to Your Life's Purpose Interactive Internet Radio Show at http://www.dawnfields.com/radioshow.htm
Article Source: http://EzineArticles.com/
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