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Bad News is Good News by Al Thomas

For weeks, no, months we have been bombarded with nothing but negative news about the economy in general and thousands of individual companies. The stock market has dropped thousands of points and more than $8 trillion in paper assets have disappeared.

The Bottom? by Al Thomas

Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal."

A Good Fund Manager by Al Thomas

Every Wall Street analyst, financial planner and broker will tell you that the right way to pick a mutual fund is find a good money manager of a fund that has a long time record.

Financial Crime by Al Thomas

Congress recently passed another new law that is supposed to outlaw financial crime. Corporate officers will be sent to jail for “cooking the books” as it is called. Among other things it is taking the stockholders money and paying themselves huge bonuses for nonperformance. These guys are even worse than mutual fund managers who do the same thing – get paid big salaries yet continue to lose your money.

Look Out The Window by Al Thomas

Quick, look out the window. It’s raining. No, the sun’s out. No, it’s cloudy. Wait a second, it is changing again, but I can’t tell what it is going to do.

War Market by Al Thomas

There is no question that the stock market is being affected by war jitters. When it looks like peace we have a strong rally. When it looks like shooting will begin momentarily the market takes a dump. What should you do with your stock, mutual funds or cash that is waiting to find a home?

Selection Vs Direction by Al Thomas

As I have said many times before in this column it really doesn’t make any difference what you buy – stocks, funds or indexes - it takes smarts to know when to sell. Direction of the general market is more important than selection of any equity.

Humpty Dumpty the Stock Market Falls Down by Al Thomas

Humpty Dumpty had a great fall and all the King’s horsemen could not put Humpty Dumpty back together again.

Never Lose Money by Al Thomas

Never lose money in the stock market again. Yeah, I know. Don’t buy any stock, but that is not what I meant. There is a clear and easy way to protect your capital – what you have now and what you might decide to buy in the future. And don’t count on your broker to tell you this.

Pathways by Al Thomas

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.

I Love To Lose Money by Al Thomas

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.

Mr. Market by Al Thomas

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 now is world wide and no longer just concentrated in New York. To every New Yorker New York is the center of the world from which radiates all knowledge and everything else worthwhile.

Roller Coaster by Al Thomas

I love roller coasters. The steeper the better. High and fast and curvy. Yahoo! Let’s go again. But to get to the drop off point you have a slow grind up.

Don't Buy Stocks based on P⁄E Ratio alone by Chris Perruna

Why you should use the P⁄E ratio as a secondary indicator and why you should never buy or sell based solely on the P⁄E ratio.

Choosing An Investment Stock Broker by Al Thomas

If you want one. And I don't recommend any broker with whom to trade who will be giving you advice on what to buy and sell. When a broker speaks it is a eulogy for your money. My definition of a broker is one who makes you broker.

Box Of Chocolates by Al Thomas

Ever have one of those sample boxes of candy? Each little piece is beautifully wrapped in colorful foil or decorated with an interesting design. Taste just one. So good! One more. And another. Before you know it the box is empty. Nothing left. This upmove in the stock market is very tempting - and could leave you with a tummy ache.

Bull or Bear? by Al Thomas

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.

Buy and Hold Investment Philosophy by Al Thomas

Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it. Brokers and financial planners believe it, but when you show them they can get a better return by timing the market they just say, "It can't be done". They are either lazy or stupid.

Buy Low - Sell High by Al Thomas

Now where have I heard that before? I know. It was my broker. So I took his advice and bought some of the stocks he recommended. I am still waiting for the 'sell high' part of the equation. Everything he touted went up for a while and now it is lower than when I bought it. It is so low I can't bring myself to sell it. My capital has shrunk about 60% from where I started. That's a lot of money to me because it took a long time to save it. What happened?

Buying Mutual Funds by Al Thomas

It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds. There is no need to ever pay commissions as there are several thousand funds that have no commission whatsoever for either buying or selling.

Buying New Issues by Al Thomas

Has your broker been calling you recently with the "great opportunity" to get in on a new Initial Public Offering? With friends like that you don't need any enemies. I don't care how good this new stock offering sounds. The chances it will stay even or go up are about 1 in 3 and I don't want to play those odds with my money.

Investment Capital Gains by Al Thomas

Have you bought any mutual funds this year or late last year while the market was doing its skyrocket thing? Last year it was hard to lose money. This year it has been easy.

Cash by Al Thomas

How many people went to a cash position this week? There is no question that this market has scared the bajebers out of many investors, me included. Fortunately, I started going to cash some time ago, but I did give back a substantial amount of my profit.

Catnip of the Stock Market by Al Thomas

I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. The pleasure part is great, but I am not sure if he awakes without a hangover. Rocket (that's his name) reminds me of a one of those people who buy a stock and hold it. At first while it is going up there is ...

Chart Reading by Al Thomas

As an investor you will want to check out any equity before you buy it. Many investors go to Morningstar that is one of the largest providers of mutual fund information in the world. It is assumed that their information is correct. After all that is what you are paying for.

China Syndrome by Al Thomas

There has been great condemnation recently because China has been selling its goods on the world market at prices below what other countries, especially the U.S., can produce. It has been called exporting deflation.

Traders, Defend Against the Dreaded Death Spiral. by Floyd Snyder

a.k.a. DTM: Decisive Trade Management and Using Trading Stops It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over. Death spirals are of your own making if you do not practice the use of stop loses.

How Much Money Can I Make With Trading? What Account Size Do I Need To Start? by Ben Millane

These questions are the most frequently asked questions. In this article you will find detailed answers to these questions.

Investment Research - The Dalbar Study by Al Thomas

Very few people, even professionals, have heard of the Dalbar Study that originated in 1995. Its purpose is to determine the profitability of trading for the small investor of mutual funds. Their results are even worse than I thought.

Direction by Al Thomas

It is difficult to make money in a bull market, but what do you do when you are in a bear market? In what direction should you go not only to make money but to protect what you have from loss?