|
Author: Al Thomas Article source: http://www.winonapost.com/. Used with author's permission.
The Law of Chaos is the theory of random unpredictable action applied to the cosmos, mathematics, mechanics, almost everything. Those who believe it will definitely think the stock market is in chaotic state at this time. Don't you believe it.
When I was a floor trader people would ask me how do you make sense of what is going on with all that yelling and arm-waving? To the uninitiated it does look turbulent, but to those who are in the middle it is understandable and orderly. It took me a while before it became "normal".
Your broker at this time may be telling you that such-an-such stock is a great "value" because it has come down so far. Don't believe this Wall Street myth. It will only cost you money. Cash is your best position right now. Look at the pattern as shown on a stock chart.
When the trend is down never try to pick the bottom. Here are two glaring examples. Cisco went to $82. When it came down was Cisco a great buy at $65? Did your broker call you? Now it is $11 and headed for $?? Lucent looked like a buy at $60 and now it is 77 cents down from 77 dollars! Is this chaos or is there an orderly pattern to this mess? The lesson here is never buy any stock or mutual fund that is in a downtrend and if you own something that is, sell it immediately.
To those of us who have studied the price patterns of individual stocks and market indexes we see a road map (stock chart) of what has happened and have a good idea where it is going. It is not random. Many brokers will tell you this can't be done and that charts tell you nothing. That is because they have not taken the time to learn their trade. Technical analysis is more important than fundamental analysis. Over any period of time a good technical analyst will beat the shirt, pants, underwear and socks off a fundamental analyst because fundamentals don't give timing. Fundamentals are the background for a major move.
There is an orderly pattern in all this seeming chaotic price action of the stock market. To become a serious trader and money-maker you must study it in order to make it a useful tool for you investments, Otherwise, you are at the mercy of brokers, financial planners, bankers and other "experts" who know as little as you. Copyright Albert W. Thomas All rights reserved Author of "If It Doesn't Go Up, Don't Buy It!"
www.mutualfundmagic.com; email to al@mutualfundmagic.com
Media Relations: How to Get Your Letter to the Editor Published
The letters to the editor page is the second most read section of the newspaper, trailing only the front page. That page's real estate is highly coveted, but be...
Tax Deduction for Alimony Payments? - Yes!
Over 50% of marriages end in divorce in the United States. Many divorce decrees include provisions for the payment of alimony. The IRS takes the position that s...
Improve Your Conversations By Watching Talk Show Hosts
Many of us could improve our conversation and small talk skills by watching people who talk for a living. By watching and listening to good talk show hosts, we ...
How to Increase Your AdSense Revenue Stream
Google's AdSense program is one of the best, if not the best, revenue programs for web site managers. While the program has certainly created wealth for many si...
Marketing Quandaries
Being in a quandary prevents you from moving forward in developing and marketing your business. One of the first things we need to recognize about being in a q...
Give Your Valentine A Very Special Gift - Empowerment
You can (and should!) still buy your special Valentine flowers or chocolates. After reading this article, however, I hope you will give an even bigger gift to y...
9 Proven Principles for Increasing Productivity, Profit and Peace of Mind
Do you feel guilty about all the publications you purchase but
never read -- or the articles you read with great ideas or
opportunities you never implement? If...
A Warning of the Complications of Gastric Bypass Surgery
Gastric bypass surgery is growing in popularity, but the risks must be weighed.
Considering a Mortgage Refinance
If you are looking for a mortgage refinance, it never hurts to shop around for the best rate and deal. Shopping around could mean the difference between paying ...
How to Get the Girl You Want: The Attraction Killer to Avoid and Some Strategies for Success
It's one of the supreme tragedies in life. When there's just one girl you want, it becomes much tougher to get her. But by using these strategies and avoiding ...
How to Build Your List
Your list is your life. If you do not have a list of customers and prospects, you may do okay in your business but you won't be great. The one and only thing ...
Menopause and Osteoporosis
During menopause the loss of estrogen produced by the ovaries can be an additional cause in women's bone loss. Find out how to prevent osteoporosis before and d...
Pay Off Your Student Loans and Reduce Your Debts
Financing a college education is one of the more expensive debts you may incur. Student loans can take years or even decades to pay off.
My Top 5 Stock Pick Sources for 2005
Below is stats of my best stock lead sources.
1. Insider Buying Information
2. Guru Watch
3. Software Screening Tool
4. Online Message Board Networking
5. Tradi...
Can Someone Step Into Your Job Or Role And Function Effectively?
Did you know that you can create your own ebook by documenting what you do on a daily basis? Over the yeras I've documented all that I do in my role as a custom...
Wholesale Scrapbooking: Should You Start A Direct Sales Scrapbooking Business Just The Discount?
Have you ever thought about signing on with a scrapbooking direct sales company,
just to get the discount on your own supplies? It can be a great way to get yo...
The Only Ebay Auction Supplier You May Ever Need
According to a Recent article in the St Louis Post Dispatch Ebay has grown to over 34 Billion Dollars in annual sales volume. That same St Louis Post Dispatch a...
Multi Level Marketing (mlm)... Is It Taboo?
MLM or multi level marketing can be the way to succeed with an online business, is this true. Read on to learn more!
How to Gain an Unfair Advantage Over a Rival And Win Over the One You Love!
Are you being kept up late at night worried sick that you
would never be able to find or keep your true love because
of a rival coming in between you and your p...
Effective Use of Promotional Products and Ad Specialties
Promotional products can be a creative and effective form of advertising. To get the most bang for your promotional products bucks, follow these guidlines from ...
How Homeowner Can Save Their Home From Foreclosure
Drive around and see how many signs you see that says House for Sale. How many lease purchases do you see? How many abandon houses are on your street? Our cou...
Menopause and Incontinence
Discover what are the different kinds of incontinence and what you can do about them.
Low Maintenance Teak Furniture
How can you host friends in a beatiful outdoor setting without the headaches of maintenance? The answer is in the type of wood used for your garden or patio fu...
How We Define Our Relationships?
We can fall into the habit of complaining about our relationships, but do we really take the time to evaluate them? Maybe not, because well, we're always right!...
|
Print this page