 |
|
The source of the best business, financial and legal news |
|
|
||||
|
||||
|
||||
|
|
|
|
|
 | |
| |
 |
Business Informations |
|
|
|
CYA
You all know what CYA stands for. Of course, Cover Your Assets. And everyone does it. You have protection against losing your car in an accident. You have protection against being sued from that car accident. You have locks on the doors to your home to protect against theft and personal injury. Question. Do you have a lock to protect from loss in your retirement portfolio? Bet you didn't even know there is one. You sure aren't going to hear about it from your stock broker or financial planner. If there is such a thing why hasn't he told me? Maybe it is because it is too expensive. No, there is no charge for this type of protection and your brokerage company will do it. It is free. Then why don't brokers and financial planners provide this as part of their service? The simple answer is it is too much work. If you decide to use the service they will then have to watch your account. Oh, did he say he was going to watch your account? Unless your account in seven figures or close to it you do not appear on his radar screen. The average broker has 300 accounts. Could you watch what is going on in each one if you had his job? It is not possible so there must be a way to protect your money. Yes, and it is automatic. When your stocks are going up and you are making money you don't want to give back those profits, do you? Of course not. There is a simple method known to every broker and financial planner, but you must insist it is done - or you will transfer your account to someone who will. Money talks and he will understand that. First you must determine what your risk level is. Are you willing to give back 5, 10, 15% of the price of your stock when it starts down? If you say 10% then each week tell your broker you want an Open Stop Loss Order placed on the closing price of each Friday (or Monday , Tuesday, whatever) as it moves higher and not to reduce that price. This way he does not have to watch all the different stocks you have in your portfolio and you are protected against any big losses. He may not even want to do this and ask you to place those orders which you can easily do on the Internet. Instead of trying to figure out where or when to sell your equity you let the price action of your stock tell you when it is getting weak. There are many ways of placing Stop Loss Orders and you may wish to use another method. Many can be found by using a search on Google by typing in the words "stop loss orders". Your library should have books on the subject. For a person who is working or cannot take the time to follow the market this is the best way to protect your investments. Consider it a lock on your profits. Go back and see how this would have worked if you had done it for the past 5 years. You would be money ahead. CYA - cover your assets. 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
MORE RESOURCES:
investing - Google News |
|
|
|
RELATED ARTICLES
Boost Your Income With Financial Spread Betting About 6 years ago I started to notice that certain friends of mine had quit their jobs but continued to live very luxurious lifestyles - seemingly without doing very much. I thought they must just be using up their savings until I discovered they were all making a fantastic living by spending just a few hours a week doing something I had never heard of before - "financial spread betting". Investing and the Fear of Regret and Greed People tend to feel sorrow and grief after having made an error in judgement.Investors deciding whether to sell or buy a security are typically emotionally affected by whether the security was bought or sold for more or less than the current price. Invest or be Pink Slipped Firing an employee seems to be easier and easier for corporations. Up until now you allowed them to set your clocks. Need To Trade! You don't HAVE to be trading.As a novice trader, you'll often feel the need to trade. Retirement Plan Considerations Cheat Sheet for Small Business RETIREMENT PLAN CONSIDERATIONS are something every small business person needs to be thinking about. Do you have a strategic plan? Don't expect to have social security save you. Will a Falling Dollar Derail Your Plans for Retirement? How much are you willing to pay for a tank of gas? We've all watched as gas prices hit record highs, but what would you do if you filled your tank and paid by credit card only to discover on your monthly statement that you paid $80 to fill an economy car. No, this is not some future doomsday projection of oil prices. How To Start Investing For Financial Independence, Part 1 Today, I am going to start a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $'s, etc. The Perfect Economy? The U.S. A Safe Port For Mutual Funds But Not You! Soft dollars, a form of legal kickback, is a sly way you can get ripped off by mutual fund managers. Full service brokers give these kickbacks to non-indexed mutual funds in the form of a "rebate" to purchase research, software, and even computer equipment. Creating Wealth by Gearing Up Gearing is where you borrow money to invest. As already mentioned, it is best to clear all your debt before looking at investment. Financial Planners "Financial planners are like dentists: they may occasionally inflict pain, but in the end, you will be better off for following their advice!"Whoever wrote these lines must have either been a financial planner or someone who relied heavily on planners for finance management. We all know that planning our finances is vital. Trend Following Trend following also called momentum trading is the simplest and safest method of stock market investing. It puts you in stocks and mutual funds that are going up and gets you out when they start down. Who Wants To Be A Millionaire? I am sure you have probably read about the power of compound interest. And how if you invested $10,000 at 10% return and let it compound for 50 years you would have a little over 1 million dollars. Shareholders Meeting Changing With Times A significant number of corporations that settled accounts in the past year are ready to hold their annual shareholders meetings.In this year's meetings, more than 300 companies plan as their main focus of attention defense measures against hostile takeover bids. Fundamentals of Option Pricing When one begins to consider an option, it is very important to figure out how the premium is calculated. Option premiums depend on a variety of factors including the time left to expiry as well as the price of the underlying security. Caveat Emptor: You May Owe Taxes Despite 401(K) Losses! One among many ways you lose money in non-indexed mutual funds is the tax trap. You may have to pay taxes even when your mutual fund loses money! To many people this is painfully unexpected. Day Trading the SP Futures with Initial S/R and the NYSE TICK For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop.How strong that new trend becomes is market-dependent. The Economys Greatest Depression Downturn Ever Is Now Just A Few Years Away What really controls the economy? Forget interest rates, forget deficits, forget the Fed, forget IRAQ, forget which party is in office. In fact, forget just about everything that permeates the news. Wit and Wisdom on Money, Wall Street and Success - Part #4 Can you concisely summarize your investment philosophy in a few sentences? My experience is that most people can't. The quotes that follow are diamonds that offer a real powerful education in the world of Risk Management. The Realities Of Market Timing Market timing systems are based on patterns of activity in the past. Every system that you are likely to hear about works well when it is applied to historical data.
|
| home | site map |
| © 2006 |
|
|
|
|
|
|
||||
|
||||
|
